Registering a Proprietorship Firm Name in India

Sole Proprietorship

Registering a Proprietorship Firm Name in India

Registrationwala

This post was originally published in 2022 and has been updated on January 02, 2025, to provide you with the most current and accurate information.

 


If you do not want to go through the process of registering a company with the registrar of companies (RoC), you can choose to open your business as a sole proprietorship. However, a sole proprietorship is not a separate legal entity from its owner, meaning the owner and the business are treated as one and the same in the eyes of law.

Establishing a sole proprietorship is pretty easy. Unlike a partnership firm, there is no need to create a partnership deed, and unlike a private limited company, there is no requirement for an AoA or MoA. At a glance, to register a sole proprietorship you need only two things: a bank account and the GST registration. 

Through this article, we are going to guide you through the steps required to register your sole proprietorship firm name in India.

Definition of Sole Proprietorship

Before we begin discussing the process to proprietorship firm name registration, it will suit you to know the definition of a sole proprietorship. It is:

  1. The most basic form of business entity in India.

  2. Not a legal entity and hence, no compliance other than income tax returns is needed.

  3. Easy to form, with no substantial legal paperwork required.

  4. Not necessary to have any money when you are establishing it, unlike in the case of a private limited company, one person company or public limited company.

  5. Not a slave of separate income tax returns other than GST registration.

Sole Proprietorship Firm Name Registration Process

To register the name of Sole Proprietorship, you need to follow the steps below:

Decide the Name of Sole Proprietorship Firm

The name of any business holds a tremendous amount of weight. Therefore, you should think long and hard while naming your sole proprietorship. It should be unique, memorable and should not offend anybody. That being said, it’s not difficult for a sole proprietorship to decide upon a name. You can name your Sole Proprietorship with your own name if you want.

Choose the Business Location

Before the proprietorship firm goes through name registration, it should decide its place of business. Depending upon your trade, you can set your business anywhere. However, for nuanced businesses like eateries, legal firms and shops, you must obtain all the required permits and ensure the location is easily accessible and targets the right customers.

Collect the Required Documents

Following are the documents required for the GST registration of your Sole Proprietorship firm:

Once collected, file the application for GST registration in India. Once you acquire the GST registration number, you can apply for a bank account in the name of your firm.

Secure Trademark for Proprietorship Firm

Even when you have registered your proprietorship firm, you aren’t secure. In order to prevent your competitors from using the same name, you need to register it as a trademark. The process of trademark registration for a sole proprietorship business name is as follows:

Conclusion

Setting up your business as a sole proprietorship saves you from the hassle involved in the company registration process with RoC. After choosing the name of your sole proprietorship, you should register it as a trademark. With trademark registration for your proprietorship firm’s name, you can protect its identity for a long time.

Frequently Asked Questions (FAQs)

Q1. Is sole proprietorship a separate legal entity from its owner?

A. No, a sole proprietorship is not a separate legal entity from its owner.

Q2. What is the owner of the sole proprietorship called?

A. The owner of the sole proprietorship is known as proprietor. 

Q3. Is GST registration required for sole proprietorships?

A. Yes, GST registration is required for sole proprietorships if their annual turnover exceeds Rs. 40 lakhs (or Rs. 20 lakh rupees for certain states). 

Q4. Can a sole proprietorship conduct export business?

 

A. Yes, a sole proprietorship can conduct export business as long as it has a valid Import Export Code from DGFT.

 

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