ROC ANNUAL FILINGS

Roc Annual Filings for the Modern Entrepreneur.

The Sole Proprietorship Is A Popular Business Form Due To Its Simplicity, Ease Of Setup, And Nominal Cost But Is Not A Legal Entity

The sole proprietorship is the simplest business form under which one can operate a business.

A distinct disadvantage, however, is that the owner of a sole proprietorship remains personally liable for all the business’s debts.

Proprietorship

The Sole Proprietorship Is A Popular Business Form Due To Its Simplicity, Ease Of Setup, And Nominal Cost But Is Not A Legal Entity

The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. A sole proprietor need only register his name and secure local licenses, and the sole proprietor is ready for business.

A distinct disadvantage, however, is that the owner of a sole proprietorship remains personally liable for all the business’s debts. So, if a sole proprietor business runs into financial trouble, creditors can bring lawsuits against the business owner.

There is no mechanism provided by the Government of India for the registration or incorporation of a Proprietorship. Therefore, the existence of a proprietorship is established only by tax registrations and other business registrations that a Proprietorship is required to have as per the rules and regulations.

Start Your Own Proprietorship Easily

Account Outsorcing

The registration with the labour department under the shops & establishment act is mandatory in all states; the applicability, government fee and registration process differ from one state to another.

Professional Tax

Except in the north Indian states, almost every state imposes a tax on the profession. You should check its applicability and enrol the entity and, when employing staff, also obtain registration as an employer under PT.

GST Registration

GST is a tax on the supply of goods and services and applies when turnover crosses Rs. 40 Lakh in case of goods and Rs. 20 Lakh in case of services. To comply with GST, registration is mandatory.

MSME Registration (Also known as Udyam or Udyog Aadhar)

After registration is complete you start process for opening bank account

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Start Business in One Day

Proprietorship formation is the easiest among all other business forms, and that you can start within one working day.

100% Online Process

We help small business to start their business in an entirely online environment and without any hassle.

Ease of Compliance

The compliance requirement is significantly less, and there is no need to get the accounts audited or file any annual return.

Limited Liability

As the taxable income forms part of the Proprietor’s ITR, The benefit of slab based income tax is available to proprietorship.

Limited Liability

The compliance requirement is significantly less, and there is no need to get the accounts audited or file any annual return.

Easy To Close

There is no specific process to close the proprietorship firm. Surrender all registration and licenses and close business.

Feature Proprietorship One Person Company

Meaning

The word sole denotes single, and proprietorship is for the ownership. The sole proprietorship is the most common form of business for tiny business in India, where a single individual owns & controls it.

The OPC is a fusion of sole proprietorship and the corporate form of business. The Companies Act, 2013, for the first time, introduced the OPC to enable a single person to open a company with a simplified compliance regime.

Registration

No formal registration of sole proprietorship is required as there is no specific law of parliament or state that regulates the proprietorship business. That is why it is so simple to start and manage.

A one-person company is incorporated under the Companies Act, 2013. The process is simple and online. Only one person is required to start the OPC.

Distinct Legal Entity

A sole proprietorship firm is not a separate legal entity from that of its proprietor. The proprietor and the proprietorship is the same thing.

OPC is a separate legal entity, and the shareholder/director of the OPC are different from that of the OPC.

Liability

The proprietor is personally liable for all the liabilities and debts of the business. To pay off these liabilities, the personal properties of the proprietor can also be attached.

In an OPC the single shareholder is not liable for all the liabilities or debts of the company, and instead, he/she is responsible for paying only the sum which may be outstanding from her subscribed share capital.

Number of Members

A single Individual can start a Sole Proprietorship Firm, where he alone will invest all the capital and shall be entitled to all the profits of the firm.

The OPC can be owned by only one Individual, also known as the sole shareholder. However, the sole owner of the OPC has to nominate another person to become his or her nominee.

Minimum Capital

You can start the proprietorship firm with any amount of capital. It means there is no minimum or maximum capital prescribed as such for a proprietorship firm.

There is no prescribed minimum capital as such. It means you may incorporate an OPC with any capital as you desire. After the 2021 budget, there is no limit on maximum capital.

Succession

The proprietorship business lacks the benefit of perpetual succession. With the demise of the proprietor, the firm also ends its life. The proprietor and the proprietorships are one and the same.

The OPC is recognized as a separate legal entity in the eyes of the law and the business is transferred to the nominee after the demise of the proprietor.

Separate Property

As there is no distinction between the the owner (proprietorship) and the sole proprietorship firm as such, the firm can not own property or assets in its name.

An OPC being a separate legal entity is capable under the law to own the property in the name of one person company.

Checklist On Minimum Requirements To Start Proprietorship

Indian Citizenship

The proprietorship business is available exclusively to the Citizens of India. The FDI is not allowed in it, hence to start a sole proprietorship we need Indian Citizen capable of entering into contracts (Above 18 Years of age)

Business Address

The business can not be run from a residential address as per local municipality laws, hence for GST Registration, the Goods and Services Tax Department insists on the commercial premises of premises where mixed land use is permitted.

Capital Requirement

The name of the proposed new business should be unique and eligible; we advise you to check the proposed name in the database of the trademarks before its adoption for the capital requirement

New & Unique Name

The sole proprietorship business is not separate from the Individual Proprietor, and There is no separate recognition of the assets of the business or that of the proprietor. capital requirement

Step-Wise Process To Start A Sole Proprietorship Business

Start your business as a proprietorship quickly within one day. The process begins with the online order at setindiabiz. Once the order for proprietorship setup is processed, we will initiate the documentation and further process. As said earlier, the process is entirely online, and there is no need for you to visit our office. Please do contact us for any clarification.

Documentation

The process starts with documentation of the proprietor and the place of business where the firm shall carry out its business, ensuring that the documents are updated and correct. Please share the filled questionnaire and all documents at help@setindiabiz.com, quoting your order details.

MSME - UDYOG Aadhar

For opening a bank account, there is a need for two documents in the proprietorship name. One of the registrations could be Udyog Aadhar, enabling an entrepreneur to seek online services offered by Government Departments apart from various other benefits under the MSME Act.

Unique Name

The first thing is to select a unique name for your proprietorship business. The starting point should be to search the business's proposed name in the trademark register to avoid infringement on someone else's trademark.

GST Registration

You may not supply goods or services all over India unless the proprietorship firm obtains GST Registration. However, if you are doing business only within the state, GST is not required until the turnover of Rs 40 lakh in case of Goods and Rs 20 Lakh in case of services is reached.

Documents & Fee Required To Start A Proprietorship Firm

A. DOCUMENTS OF THE OWNER B. BUSINESS ADDRESS PROOF
Colour Photo – Two
Aadhar Card
PAN card
Cancelled Cheque
Address Proof (Voter ID, Driving License, Passport, Bank Statement, Electricity Bill).

B. BUSINESS ADDRESS PROOF

Electricity Bill, Property tax receipt, Sale Deed, Registered Rent Agreement.
It should not be older than two months.
NOC from the Owner of Premises
Download NOC Format
Download Questionnaire

Taxation Of Sole Proprietorship

The proprietorship is not considered as a separate entity in law, and the income of the proprietorship firm is added in the ITR of the proprietor itself. In other words, no separate ITR is filed for the proprietorship firm. The Individual slab based taxation of 5% to 30% based on the income is applicable. The deduction under section 80C to U is also available on the income of such proprietor. For the FY 2021-22, the Individual tax rate slab is as under.

Under New Income Tax Regime U/s 115 BAC

S.No	Total Income	Tax Rate
1	Upto Rs. 2,50,000	NIL
2	Rs. 2,50,000 To Rs. 5,00,000	5%
3	Rs. 500001 to Rs. 7,50,000	10%
4	Rs. 7,50,001 to Rs. 10,00,000	15%
5	Rs. 10,00,001 to Rs. 12,50,000	20%
6	Rs. 12,50,001 to Rs. 15,00,000	25%
7	Above Rs. 15,00,001	30%

Under the old Income Tax Regime

S.No	Total Income	Tax Rate
1	Up to Rs. 2,50,000	NIL
2	Rs. 2,50,000 To Rs. 5,00,000	5%
3	Rs. 5,00,000 to Rs. 10,00,000	20%
4	Above Rs. 10,00,001	30%

ROC ANNUAL FILINGS