FAQs - SOLE PROPRIETORSHIP
Q. What is a sole proprietorship?
A. Proprietorship in India is a type of unregistered business entity that is owned, managed, and controlled by one person. The micro and small businesses that are operating in the unorganized sector prefer getting registered as sole proprietorships.
Q. Who can get sole proprietorship registration?
A. An Indian citizen with a current account in the name of their business can get a sole proprietorship registration.
Q. How long does it take to register a sole proprietorship in India?
A. It takes around 8 to 10 days but is subject to government processing and document submission.
Q. Is there any certificate of incorporation?
A. No, there is no certificate of incorporation given.
Q. Are there any compliances for sole proprietorship?
A. An individual just has to file the Income Tax Returns and GST returns for the proprietorship firm.
Q. Is there any minimum requirement to start a sole proprietorship?
A. No, there is no minimum requirement to start a sole proprietorship in India.
Q. How long does the sole proprietorship exist?
A. The sole proprietorships exist as long as the proprietor is alive and desires to run the business.
Q. Is the owner of the sole proprietorship considered to be the same as the sole proprietor?
A. Yes, a sole proprietor is considered to be the same as the sole proprietor owner.
Q. What are the licenses required for proprietorship registration?
A. It generally differs from state to state, for example in Maharashtra, a Shop and Act license is required and in West Bengal, trade license is required.
Q. What is the role of the proprietor in sole proprietorship?
A. The sole proprietor owns, controls, and manages the proprietorship. They have a complete hold over the proprietorship.