SOLE PROPRIETORSHIP

Looking to establish your business with ease? Sole proprietorship registration is the simplest and most cost-effective way to start your entrepreneurial journey. At JR Compliance, we simplify the entire process, ensuring compliance and accuracy while providing expert guidance to meet your unique needs. Get started today with sole proprietorship consultants and take the first step toward building your dream business.

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Service Overview

Sole proprietorship is a straightforward business structure which does not need complex compliance requirements where the proprietorship firm and the proprietor are considered as one and the same. It enables owners to run their businesses without the interference of third parties and can enjoy full revenue for personal or business use. Hence, it is easier to run a sole proprietorship than a big corporation.

‍Challenges of Filing for a Private Limited Company

Complex Procedures

The formation of the private limited company is quite complex as it requires many legal formalities.

Time-Consuming

Sometimes, its exhausting to gather all the necessary papers and fill out all necessary documents.

Share Limit

In a Private Limited Company there is a limit of 200 shareholders, with a restricted limit on share transfers.

Business Commencement

Within 180 days of registering a Private Limited Company, the certificate of commencement of business must be obtained.

‍Challenges of Filing for a Sole Proprietorship

Limited Liability Protection

Sole traders are required by law to account for all business liabilities from start to closure. This indicates any time a business decides to borrow or engage in legal procedures, the owner’s assets are endangered.

Difficulty Raising Capital

Many businesses register as sole proprietorships for easy commencement of the upper stages but securing credit as a sole trader can prove hard since most lenders do not like such structures. This presents a problem in accessing financing in order for sole traders to expand.

Increased Workload and Stress

Managing every aspect of a business alone can lead to burnout. Sole proprietors often face significant pressure, juggling multiple roles, which can affect both productivity and well-being.

Limited Longevity and Continuity

It is significant to note that the business directly associates its existence with the life and participation of the owner. The existence of the business could be short if the proprietor wishes to sell or passes away.

Advantages Of Registering A Sole Proprietorship

Full Control

Sole proprietors make all the economic and management decisions and can adapt easily to market changes.

Simplified Tax Process

All revenues to be earned by the business are considered as personal income, thus making the taxation process easier with potential overall taxation burden being less than in other forms of businesses.

Low Startup Costs

New business most especially a sole proprietorship does not involve much capital investment hence it is affordable to establish especially for those with limited capital base.

Direct Profit Retention

The business profits belong to the owner, which means that the sole proprietors can either re-invest the earnings in the business or take the profits for their consumption from business without having to take one or more partners into consideration.

Service Process

01

Submit KYC Documents

Provide Aadhaar, PAN, and address proof. Declare a Principal Place of Business with utility proof and an NOC from the owner. These documents are essential for registration.

02

Choose a Unique Business Name

Select a legally valid, unique name that doesn’t violate trademarks. Registering a trademark for your business name, domain, logo, or brand is advisable for protection.

03

Register for MSME/Udyam

Sole proprietorships fall under MSMEs. MSME registration provides benefits like collateral-free loans, interest subsidies, and rebates on IPR registration. It’s also needed for a business bank account.

04

Get GST Registration

If your business meets the GST threshold, register on the GST portal. Upon approval, you’ll receive a GSTIN, which is required for all future GST-related activities.

05

Apply for Shops & Establishments Registration

This registration is mandatory for all businesses. It is issued by the State Labour Department after submitting the required documents online or offline.

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Service Process

Consultation

We will have a consultation regarding your business vision and requirements to decide on whether the private limited company fits you well.

Documentation

We will help you to do the paperwork involving preparation of the Memorandum of Association and Articles of Association.

Registration

We will then forward all the necessary documents to the Registrar of Companies as required for registration.

Support

We will always be here with you to offer assistance and advice so that you can efficiently run your private limited company.

Compliance:

We will assist you in maintaining a continuing compliance with all legal and regulatory standards.

Service Process

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Service Breakdown

Eligibility

Legal age: The owner should be of legal age (18 years or older) for registering a company.

Owner’s Residency: The owner must legally reside in the country where the company is operating

No existing business: The owner should not have any prior business structure in place.

Regulatory Commitment: The business must be committed to following local regulations be committed to following local regulations.

Documents

Identity Proof: Submit documents like Aadhaar Card, PAN Card, or Voter ID for verification.

Address Proof: Provide utility bills or rental agreements as proof of business location.

Bank Account Details: A bank statement or cancelled cheque is necessary for financial compliance.

Business Name Proof: Provide a certificate or declaration confirming your chosen business name.

Who Needs

Aspiring entrepreneurs: Sole proprietorship is for those aspiring entrepreneurs who have just ventured into the world of business.

Freelancers or consultants: It does not involve much capital investment, hence it is affordable to establish for new business owners.

Home-based business owners: Sole proprietorship is flexible with profits, if the owner wants they can use the profit for themselves or reinvest in the business.

Professionals providing services: All revenue earned in the business is considered personal income, hence making the overall taxation process easy.

Creating Trust-Driven Relationships

JR Compliance is one of the known name for BIS certification, they are well versed with processes
and guide client properly.

Kartik Shah

Published on 4 March 2024

We have outsourced the entire BIS certification responsibility of our panels to JR compliance since 2017 and their service so far has been
exemplary.

K Narayanan

Published on 4 March 2024

We have been using JR Compliance services since last 3 years on various BIS related registration & testing of our various IT & electronic products. We really appreciate your full-fledged & excellent support in all respect in this matter.

P N Dhawanjewar

Published on 4 March 2024

FAQ

What does the term Sole Proprietorship mean?

Sole ownership or sole proprietorship is one of the most practiced forms of business that is economical and efficient to carry out. The owner has full control and is accountable for running the entire business and also entitled to all the profits or losses that the business makes.

What procedures do I adhere to when enrolling a Sole Proprietorship?

To start a sole proprietorship business, the first requirement is to agree on an appropriate name for the business that has not been picked by anyone else. The second stage concerns the promotion of the newly chosen name. Thirdly this may involve seeking certain distinctive permission, to the particular area in question and lastly the maintenance of records in an orderly manner, to comply with the regulations.

What benefits do you get as a Sole Proprietor?

As opposed to other forms of ownership, a sole proprietorship has many advantages. First of all, the owner simply runs the business which means low business establishment costs, might have to procure some licenses, certifications or registrations as per the nature of the business, there are minimum regulations and the will to work is all that is needed.

What are the dangers of being a sole proprietor?

One of the main risks that you should pay attention to is unlimited personal liability. Simply put, it will be stated that your business incurs debts i.e. legal strains; your very own possessions may be at stake. This realization is very important before deciding to proceed with such a decision.

As a sole proprietor can I employ any person to work in my business?

Sole proprietors can also have hired employees; however, they must comply with relevant employment laws, obtain requirement to apply an Employer Identification Number (EIN), and pay payroll taxes for the hired incomers.