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Sole Proprietorship Registration

Private Limited Company Registration in only ₹4,999

  • Required Documents
  • Annual Compliances
  • Benefits
  • Documents You will get after Registration

Get Free Consultation

    What is a Sole Proprietorship Firm?

    Sole proprietorship is a type of business entity which is owned and managed by a single person only. It is not governed by any law and hence it is the easiest form of business in India. All the decisions and management of the business is in the hands of one person.

    Proprietorship Firm Registration - Online Process, Importance, Documents Required

    Updated on Feb 11, 2024 10:39:28 AM

    • What is a Sole Proprietorship Firm? Sole proprietorship is a type of business entity which is owned and managed by a single person only. It is not governed by any law and hence it is the easiest form of business in India. All the decisions and management of the business is in the hands of one person.

    Benefits of Proprietorship Firm Registration

    Minimal Compliances:

    • A proprietorship firm has very minimal compliance requirements which makes it much more preferable option than One Person Company.

    Easy to Start:

    • Sole Proprietorship is not governed by any law and does not require any mandatory registration. Hence, it is the easiest way of starting a business entity.

    Lower cost:

    • As there are minimal compliances, there is no need to hire an auditor for meeting the legal compliance requirements.

    Complete control:

    • As a proprietorship firm is owned by a single person, he has the complete control over the business decisions and there are no interventions of any kind.

    Procedure of Sole Proprietorship Firm Registration

    GST Registration

    • Depending upon the requirement of the business and GST Law, application for GST registration has to be made with the department. GST registration usually takes around 5-10 working days.

    MSME Registration

    • o establish the existence of your proprietorship firm and avail various benefits, you’ll have to file an application for registering your firm as Small and Medium Enterprise (SME) under the MSME Act. It is beneficial for the business at the time of taking out a loan. The government runs various schemes for SMEs to provide loans at low-interest rates.

    Shop and Establishment License

    • You are required to obtain a shop and establishment license according to the local laws. It is issued by the municipal corporation on the basis of the number of employees or workers in the firm.

    Bank Account Opening

    • Once all the steps are completed, the current bank account should be opened by the proprietorship firm. You can contact us for assistance with your current bank account opening.

    How much does it cost to register an LLP?

    • The total fees for registration of Sole Proprietorship Firm in India is ₹1,999 including government and professional fees. The main cost is mandatory registrations for existence of proprietorship firm like GST registration, MSME registration, etc.

    Documents you’ll need for proprietorship registration

    Aadhar Card

    Shareholders’ liability is limited to the extent of their shareholding. This means that the personal assets of shareholders are generally protected from the company’s debts and liabilities.

    Pan Card

    While there are still regulatory requirements, they are often less stringent compared to public companies, reducing administrative burdens.

    Address Proof of Office

    Registering as a private limited company can help protect your brand name, preventing others from using it for their businesses

    Documents you’ll get after company registration

    Post incorporation of your sole proprietorship firm, you’ll receive the following documents:

    • GST Registration Certificate
    • Shop and Establishment Act License
    • MSME Certificate

    Why Taxvilla

    On average, it takes around 7-10 working days to register a private limited company in India subject to document verification by MCA.

    • Complete Digital
    • Free Expert Assistance
    • Best Price Guarantee
    • 4.9/5 Google Rating
    • Money Back Guarantee
    • Simple & Fast Process

    Frequently Asked Questions (FAQs)

    You can easily register your private limited company by arranging all the required documents and fulfilling the requirements as per the Companies Act, 2013.
    In order to register your private limited company in India, you need to provide identity and address proof of all the members along with address proof of the registered office.

    Note : You don’t need a commercial place for registration, you can use your residential home address for incorporation.
    No, GST is not mandatory for private limited companies.
    There is no minimum capital requirement for private limited company registration. One can start a company with a share capital of as low as ₹10.
    LLP and Pvt Ltd Company both have their own pros and cons. It completely depends upon the requirement of the business.
    Yes. A Limited Liability Partnership can be converted into a private limited company easily. To read more, refer to this page on

    What is Private Limited Company

    A Private Limited Company, often abbreviated as Pvt Ltd, is a type of privately held business entity that limits owner liability to their shares, restricts ownership to a group of private individuals, and prohibits shareholders from publicly trading shares. This structure offers a myriad of advantages, including limited liability protection, separate legal entity status, and perpetual succession, making it an attractive option for entrepreneurs worldwide.

    Private Limited Company represents a versatile and advantageous business structure that combines the benefits of limited liability, separate legal entity status, and perpetual succession. Whether you’re a budding entrepreneur seeking to establish a robust business foundation or an established enterprise looking to restructure, embracing the Pvt Ltd model can unlock a world of opportunities and pave the way for sustainable growth and success.

    Documents Required for Registration of Private Limited Company

    To begin, here’s a list of the typical documents you’ll need:

    • Proof of Identity and Address: Directors and shareholders need to provide identity proof (such as Aadhar card, passport, or driver’s license) and address proof (such as electricity bills, Gas bills or bank statements or any other proof).
    • Registered Office Address Proof: Documents proving the registered office address of the company, such as a rental agreement or sale deed, NOC, Electricity bill, Gas bill etc.
    • PAN Card: Permanent Account Number (PAN) card of the directors.
    • Passport Size Photograph: Passport size photo each director.
    • Email ID & Mobile Number: Email ID & Mobile Number of each director.
    • Unique Business Name & Nature of Business: Unique Business Name & Nature of Business needs to be provided by client.

    Documents You will get after Registration of Private Limited Company

    After successfully incorporating a private limited company, you will receive several important documents. These documents serve as proof of the company’s existence and are crucial for conducting business and legal transactions. Here are the key documents you’ll typically receive:

    • Certificate of Incorporation: This is the most important document, confirming the legal existence of your company. It includes details such as the company name, registration number, date of incorporation, and registered office address. It is issued by the Registrar of Companies (ROC).
    • Memorandum of Association (MOA): The MOA defines the company’s constitution and outlines its objectives, scope of operations, and relationship with shareholders.
    • Articles of Association (AOA): The AOA sets out the rules and regulations for the internal management of the company, including the roles and responsibilities of directors, shareholder rights, and procedures for meetings.
    • PAN (Permanent Account Number): After incorporation, you need to apply for a PAN for your company. PAN is a unique identification number assigned by the Income Tax Department for tax purposes.
    • TAN (Tax Deduction and Collection Account Number): If your company is liable to deduct or collect tax at source, you’ll need to apply for a TAN from the Income Tax Department.
    • Share Certificates: Share certificates are issued to shareholders as evidence of their ownership in the company. They typically include details such as the shareholder’s name, number of shares held, and the company’s seal.
    • Minutes of the First Board Meeting: The first board meeting of the company is held after incorporation to finalize important matters such as appointment of directors, opening bank accounts, and approval of initial contracts. Minutes of this meeting document the decisions taken.
    • Statutory Registers: Certain statutory registers such as the Register of Members, Register of Directors, Register of Charges, etc., need to be maintained by the company as per the Companies Act, 2013. These registers should be kept at the registered office address of the company.
    • GST Registration Certificate (if applicable): If your company’s turnover exceeds the prescribed threshold, you’ll need to register for Goods and Services Tax (GST) and obtain a GST registration certificates.
    • Director Identification Number (DIN): DIN is a unique identification number assigned to individuals who wish to be appointed as directors of a company in India. It is mandatory for all directors, and each director must have a separate DIN. The application for DIN is made through Form DIR-3 on the Ministry of Corporate Affairs (MCA) portal. Once issued, the DIN remains valid for the lifetime of the director and can be used for multiple directorships.
    • Master Data: In the context of company incorporation, master data typically refers to the fundamental information about the company, its directors, and its shareholders. This includes details such as the company’s name, registered office address, authorized and paid-up capital, details of directors (including DIN), details of shareholders, and their respective shareholdings. Master data forms the basis of the company’s records and is often required for various statutory filings and compliance purpose.

    Register your Private Limited Company with Online CA Services only in 4,999 ( ALL INCLUSIVE )

    Here’s a breakup of fees charged by Online CA Services :

    Particulars Fees
    2 Digital Signature Cost ( DSC )
    2,000
    Government fees* ( Stamp Duty , Notary Cost , PAN Fees , TAN Fees etc.)
    2,000
    Professional Charges
    999
    Total Charges (all inclusive)
    4,999
    • Government fees may vary depending on the state of registration & timing of regisration.

    Time Required for Registration of Private Limited company with Online CA Services

    • On Average , It takes around 7-10 working days for registration of private limited company subject to verification of documents by MCA.

    Benefits of Private Limited company Registration

    Limited Liability

    Shareholders’ liability is limited to the extent of their shareholding. This means that the personal assets of shareholders are generally protected from the company’s debts and liabilities.

    Separate Legal Entity

    A private limited company is considered a separate legal entity distinct from its owners. It can enter into contracts, own assets, and sue or be sued in its own name.

    Perpetual Existence

    The company continues to exist even if its shareholders or directors change, providing stability and continuity to the business.

    Access to Capital

    Easier access to capital through the issuance of shares to investors, including family, friends, and venture capitalists.

    Credibility

    Having “Limited” in the company name often conveys credibility and professionalism, which can be advantageous when dealing with customers, suppliers, and lenders.

    Tax Benefits

    Depending on the jurisdiction, there may be tax advantages for private limited companies, such as lower corporate tax rates or tax deductions for certain expenses.

    Attracting Talent

    Offering shares and the potential for growth can help attract skilled employees who are motivated by the opportunity to own a part of the company.

    Ease of Ownership Transfer

    Shares of a private limited company can be transferred relatively easily, providing a way for shareholders to exit or new investors to enter.

    Limited Regulatory Compliance

    While there are still regulatory requirements, they are often less stringent compared to public companies, reducing administrative burdens.

    Brand Protection

    Registering as a private limited company can help protect your brand name, preventing others from using it for their businesses

    Annual Compliances of Private Limited company

    For a private limited company in India, adhering to annual compliance requirements is crucial to ensure legal standing and avoid penalties. Here’s an overview of the key annual compliances:

    Annual General Meeting (AGM)

    • Timing: Must be held within six months from the end of the financial year (i.e., by 30th September of each year).
    • Agenda: Approval of financial statements, declaration of dividends, appointment or reappointment of directors, and appointment or reappointment of auditors.

    2. Annual Return (Form MGT-7)

    • Content: Details of the company’s directors, shareholders, changes in directorship, and corporate governance disclosures.
    • Due Date: Within 60 days from the date of AGM.

    Financial Statements (Form AOC-4)

    • Content: Audited financial statements, Board’s report, and the auditor’s report.
    • Due Date: Within 30 days from the date of AGM.

    Income Tax Return (ITR)

    • Content: Details of the company’s income and expenses.
    • Due Date: Typically by 30th September of the assessment year, following the financial year.

    Director’s Report

    • Content: Information about the company’s performance, the board’s views on future prospects, and other statutory disclosures.
    • Due Date: Part of the financial statements submitted with Form AOC-4.

    Form ADT-1

    • Content: Appointment of auditors.
    • Due Date: Within 15 days from the AGM in which the auditors are appointed.

    Board Meetings

    • Frequency: Minimum of four board meetings in a year, with a gap of not more than 120 days between two consecutive meetings.
    • Minutes: Maintain minutes of all meetings in the minutes book.

    Statutory Registers

    • Registers: Maintain various statutory registers, including the register of members, register of directors, and register of charges.

    Form DPT-3

    • Content: Return of deposits, or particulars of transactions not considered as deposits.
    • Due Date: Annually by 30th June.

    Form MSME

    • Content: Details of outstanding payments to Micro or Small Enterprises.
    • Due Date: Semi-annually, on 31st October and 30th April.

    Additional Compliances:

    • Form DIR-3 KYC: Annual KYC of directors.
    • Form BEN-2: Return to the Registrar in respect of declaration under section 90 (Significant Beneficial Ownership).
    • Form MBP-1: Disclosure of interest by directors in the first board meeting.

    Penalties for Non-Compliance

    • Non-compliance can lead to significant penalties for the company and its directors, including fines and potential disqualification of directors.

    Different Types of Private Limited company

    Private Limited Companies are a popular business structure in many countries due to their flexibility and limited liability. Here are some common types of Private Limited Companies, along with their characteristics:

    Limited by Shares :

    • Ownership: Owned by shareholders.
    • Liability: Shareholders’ liability is limited to the amount unpaid on their shares.
    • Features: This is the most common form, where the company’s shares are not publicly traded.

    Limited by Guarantee :

    • Ownership: Owned by members who act as guarantors.
    • Liability: Members’ liability is limited to the amount they agree to contribute to the company’s assets if it is wound up.
    • Features: Often used for non-profit organizations, charities, and clubs.

    Unlimited Company:

    • Ownership: Owned by shareholders.
    • Liability: Shareholders have unlimited liability, meaning they are responsible for the company’s debts without limit.
    • Features: Rare and typically used for specific legal and financial purposes.

    Overview of Annual Compliance for Private Company.

    Annual Compliance for Private Limited Companies:

    A private company is a separate legal entity that must maintain its active status through regular filings with the Ministry of Corporate Affairs (MCA). It is mandatory for every business entity, regardless of its turnover, to file an annual return and audited financial reports with the MCA for each financial year. These filings are necessary even if the company has not conducted any business activities during the fiscal year.

    Both forms are utilized to report the activities and financial data for the respective financial year. The due dates for annual filing depend on the timing of the Annual General Meeting (AGM). Failure to comply with annual filing requirements may result in the removal of the company’s name from the RoC’s register, along with potential disqualification of directors. The MCA actively implements measures to address such failures.

    Compliances relevant to private limited companies can be categorized into two sections: Mandatory Compliances and Event-Based Compliances.

    Mandatory Annual Compliances.

    Annual Compliance Requirements for Private Limited Companies:

    First Board Meeting: The first meeting of the Board of Directors, including directors, should be held within 30 days of the incorporation of the company. Notice of the meeting must be sent to each director at least seven days prior to the meeting.

    Subsequent Board Meetings: A minimum of 4 board meetings must be held every year with not more than a 120-day gap between two meetings.

    Appointment of First Auditor: The Board of Directors must appoint the first auditor of the company within 30 days of incorporation. The appointed auditor will hold office until the conclusion of the first Annual General Meeting (AGM). Filing of Form ADT-1 is not required for the appointment of the first auditor.

    Appointment of Subsequent Auditor: The Board must appoint the auditor for the first AGM, who will hold office until the conclusion of the sixth AGM. This appointment must be notified to the Registrar of Companies (ROC) by filing Form ADT-1 within 15 days of the appointment.

    Annual General Meeting (AGM): The first AGM of the company must be held within six months from the date of incorporation, and subsequent AGMs must be held annually. The appointment of the auditor should be ratified at the AGM.

    Filing of Annual Return (Form MGT-7): Every private limited company must file its Annual Return within 60 days from the conclusion of the AGM. The Annual Return covers the period from April 1st to March 31st of the respective financial year.

    Filing of Financial Statements (Form AOC-4): The company must file its balance sheet, profit and loss account, and director’s report within 30 days of the AGM.

    Statutory Audit of Accounts: The company must prepare its accounts and get them audited by a Chartered Accountant at the end of each financial year. The audited financial statements along with the audit report must be filed with the Registrar.

    Event-Based Compliances.

    Event-Based Compliances for Private Limited Companies:

    Actions Form No. Time Limit
    Change in registered office
    INC-22
    Within fifteen days from the date of such change
    Change in Directors or KMP
    DIR-12
    Within 30 Days of such change
    Increase in Authorized Share capital
    SH-7
    Within 30 days of passing Ordinary Resolution
    Filing of resolution and agreements
    MGT-14
    Within 30 days from date of passing resolution
    Increase in Paid up share capital
    PAS-3
    Within fifteen days from the date of the allotment
    Change in secured borrowing
    CHG-1
    All types of Charges within 30 days of its creation
    Application for KYC of Directors
    DIR-3 KYC
    On or before 30th April of immediate next Financial Year (Annual Compliance)

    Documents you’ll get after Company Registration

    Payment of Periodic Dues and Compliance Requirements:

    Actions Frequency
    GST Liability, TDS & TCS Mandatory Payment
    As per GST, TDS, and TCS regulations
    Non-Registrar Compliance of Periodic Returns
    Monthly, Quarterly, Annual
    GST Returns
    Monthly/Quarterly
    TDS Returns
    Quarterly
    Evaluation of Advance Tax Liability and Payment
    Periodically
    Filing of Income Tax Returns
    Annually
    Filing of Tax Audit Report
    Annually
    Administrative Assessment of Trade Under Different Acts
    As per respective laws

    These compliance requirements ensure adherence to various tax laws and regulatory frameworks, ensuring the smooth operation and legal compliance of the business.

    Why Taxvilla

    On average, it takes around 7-10 working days to register a private limited company in India subject to document verification by MCA.

    • Complete Digital
    • Free Expert Assistance
    • Best Price Guarantee
    • 4.9/5 Google Rating
    • Money Back Guarantee
    • Simple & Fast Process

    Frequently Asked Questions (FAQs)

    You can easily register your private limited company by arranging all the required documents and fulfilling the requirements as per the Companies Act, 2013.
    In order to register your private limited company in India, you need to provide identity and address proof of all the members along with address proof of the registered office.

    Note : You don’t need a commercial place for registration, you can use your residential home address for incorporation.
    No, GST is not mandatory for private limited companies.
    There is no minimum capital requirement for private limited company registration. One can start a company with a share capital of as low as ₹10.
    LLP and Pvt Ltd Company both have their own pros and cons. It completely depends upon the requirement of the business.
    Yes. A Limited Liability Partnership can be converted into a private limited company easily. To read more, refer to this page on

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