A sole proprietorship is a business that is owned, managed and controlled by one person. It is one of the most common forms of business in India, used by small businesses operating in the unorganized sectors. Proprietorships are very easy to start and have very minimal regulatory compliance requirement for getting started. However, after the startup phase, proprietorship's do not offer the promoter a host of other benefits such as limited liability, separate legal entity, independent existence, transferability, etc., which are desirable features for any business. Therefore, proprietorship's are suited for unorganized, small businesses that will have a limited existence.
In India we register the Proprietorship which is also called a Sole Proprietorship Firm or Company which is register under the Indian Proprietorship Act 1908. We require the following document to form a proprietorship firm or company.
- Registration under “INDIAN REGISTRATION ACT 1908”
- Benefits at the time taking Contracts from Govt. or other Agencies
- Identification of the PROP. of the Firm.
- Benefit in taking legal Action
- Prop. Name, Father’s Name, Residence Address
- Firm Name and Firm Address
- Two Photos of the Proprietor
- Objects of the Business
- One ID proof – Voter ID or DL or Passport
- One electricity bill or water bill of office premises.
- NOC from the landlord of the premises.
- Rent agreement
- Please also give us the date of commencement of business
- In case of sole proprietorship, please attach an affidavit attested by notary public.
- Letter Head & Rubber Stamp ( Address & Prop.)