What Is Proprietorship Registration?  

Proprietorship registration is an exercise of formalization in which an enterprise is owned and managed by an individual. Such enterprises do not have to be incorporated and are called that more or less in India by differentiating registrations such as Tax, MSME, Shops and Establishments Act, etc. 

In fact, not only the most affordable but also the easiest entry into the business world in Noida is possible through a sole proprietorship. So here is everything about the sole proprietorship registration in Noida: eligibility, types, advantages, taxation, required documents, and the stepwise process. 

Eligibility Conditions To Open Sole Proprietorship In Noida 

For sole proprietorship firm registration in Noida, the following shall be the requisite: 

• Citizenship: The person must be an Indian national. 

• Minimum Age: It should be less than 18 years. 

• Business Address: Valid address proof of such a business location. 

• Legal Compliance: All other laws as applicable, such as licenses and registrations necessary to operate the business. 

Mandatory Registrations for Sole Proprietorship  

Since there is no registration for sole proprietorships, one can say that the following are the mandatory registrations: 

• GST Registration: If turnover crosses ₹20 lakh (₹10 lakh in special category states). 

• MSME Registration: This is to take benefit of government scheme advantages and faster credit access.  

• Shops and Establishment Act: This is for those units that have a physical premise to conduct business. 

• FSSAI Registration: This is for those who deal with food operations. 

• TAN Registration: Compulsory for those parties deducting taxes 'at source'. 

• Trademark Registration: While this is voluntary, it is strongly advised to safeguard the brand name. 

 Benefits of Sole Proprietorship Registration Online in Noida 

1. Easy and Cost-Effective

Whatever business registration is made in a sole proprietorship firm registration in Noida, one of the easiest methods to begin a business is through it. No long or complex registration process is required. Getting your business up and running can be a simple process with few pieces of paper and without any mandatory incorporation charge. It is therefore one of the most inexpensive ways, especially for small businesses, freelancers, and small-scale entrepreneurs. 

2. Unlimited Control Over and Decision-Making Powers

You, as the owner, have unlimited control and decision-making powers over all matters of business. Financial issues or operational and marketing decisions, you don't require advice or approval from anyone: not partners or shareholders. Such autonomy provides for quick decisions and flexibility in conducting a business. 

3. Tax Benefits

A sole proprietorship views all profits earned as the personal income of the owner. This may become tax savings, considering that you might end up being in lower tax brackets than the corporations. Depending on your spending and financial position, you might be able to qualify for a few individual deductions issued under the Income Tax Act. 

4. Minimum Compliance Requirements

In comparison to the Private Limited Companies and LLPs, a sole proprietorship has virtually no regulatory compliance. It is never to be harassed by annual general meetings, corporate statement filing or audit procedures (applicable only in the event of turnover exceeding a specified limit). This significantly minimizes the administrative burden and expense of conducting business. 

5. Greater Privacy

A sole proprietor is not required to reveal his books of account to the public or government bodies (once more, unless audited for high turnover). This provides more confidentiality in cases where your business accounts and operational details remain confidential. 

Taxation Of Proprietorship Firm Registration Services In Noida

A sole proprietorship is just similar to any other taxpayer individual under the Income Tax Act. The following are slab rates set for FY 2024-25: 

• Up to 300,000: No tax 

• 300,001 to 600,000: 5% of the amount exceeding 300,000 

• 600,001 to 900,000: 15,000 plus 10% of the amount exceeding 600,000 

• 900,001 to 1,200,000: 45,000 plus 15% of the amount exceeding 900,000 

• 1,200,001 to 1,500,000: 90,000 plus 20% of the amount exceeding 1,200,000  

• Exceeding ₹15,00,000: ₹150,000 plus 30% of income exceeding ₹15,00,000. 

• Also, 4% of the Health and Education Cess is payable on the total tax amount.

Documents Required For Proprietorship Registration In Noida 

The following are mandatory documents: 

• Identity Proof: Aadhaar Card; PAN Card. 

• Address Proof: electricity bill, rent agreement, or property tax receipt. 

• Account Details: Bank account details of the Proprietor. 

• Evidence of Business Name and Address: Evidence that proves the business address.  

Steps to Sole Proprietorship Registration in Noida 

1. Choose a Business Name: Choose a unique and meaningful name for your business.
   
   
2. PAN Card Application: Get a PAN card from the Income Tax Department.
   
   
3. Open Banking Account: Open a current account in name of the proprietor.
   
   
4. GST Registration: Get registered for GST where necessary.
   
   
5. Get MSME registration: Register under the MSME Act for concessions. 
   
   
6. Obtain the Necessary Licenses: Must obtain a license/registration as per the nature of the business. 
   
   
7. Comply: Filing of tax returns and others within the due time.

Normally the entire process get completed within 7-10 working days.  

Obligation In Compliance Of Sole Proprietorship In Noida 

• Income Tax Return: A statement against the slab for individual taxation is to be filed at the end of every financial year.  

• GST returns: To file GST return on a monthly or quarterly basis if the taxpayer is enrolled.  

• TDS Returns: Tax Deducted at Source (TDS) needs to be deducted and returned.  

• Audit requirements: It requires an audit when turnover exceeds ₹1 crore for a commerce business or ₹50 lakh in case of a professional services business.