Proprietorship

Lopamudra in India has a dedicated team of company secretarial, legal professionals

and Chartered Accountants who possess extensive experience in various corporate
laws and commercial / legal documentation. Our team is highly business oriented in
approach and has experience across sectors and the acumen to provide complete
solutions for all corporate secretarial matters.

What is a proprietorship?
A sole proprietorship, also known as the sole trader, individual entrepreneurship or
proprietorship, is a type of enterprise owned and run by one person and in which there
is no legal distinction between the owner and the business entity. A sole trader does not
necessarily work 'alone'—it is possible for the sole trader to employ other people.

The sole trader receives all profits (subject to taxation specific to the business) and has
unlimited responsibility for all losses and debts. Every asset of the business is owned by
the proprietor and all debts of the business are the proprietor's. It is a "sole"
proprietorship in contrast with partnerships (which have at least two owners).

A sole proprietor may use a trade name or business name other than their or its legal
name. They may have to legally trademark their business name if it differs from their
own legal name, the process varying depending upon country of residence.

Who is Proprietor?
The owner of a sole proprietorship business in India is called a proprietor. It cannot be a
corporate or legal entity. The proprietor and the proprietorship are considered to be the
same entity legally.
 The PAN and other documents of the proprietor are the basis for obtaining all other
business registrations and licenses. In case of any issues of liability in the business, the
proprietor is held personally liable for it.

Documents Required for Proprietorship

Quick checklist

Form-16
Salary Slips
Interest certificates from Post Offices & Banks
Form 16A/16B/16C
Form 26AS
Tax-Savings Investment Proofs
Deductions under Section 80D to 80U

Specific requirements

A Company must have a registered office in India. Documents like bank statement or
electricity bill should not be older than 2 months. Along with that utility bill, rent agreement or
sale deed and a No Objection Letter (NOC) from the landlord with his/her consent to use the
office as a registered office of a company must be submitted.