Avyud Consultancy offers expert Proprietorship Compliance Services to ensure your business stays legally compliant and tax-efficient. As India’s leading professional services platform, we assist with income tax filings, GST compliance, professional tax, TDS returns, and business licenses tailored to your industry and location. Unlike private limited companies, proprietorships have simplified compliance requirements but must still file annual tax returns and adhere to regulatory norms. Our team provides end-to-end support, helping you meet deadlines, avoid penalties, and stay updated on evolving laws. Whether you need tax audits, bookkeeping, or employee compliance, we streamline the process, so you can focus on business growth. Book a consultation today to ensure hassle-free compliance!
You need some documents to start the business and need to file some annual returns to avoid becoming a tax defaulter for proprietorship business.
PAN Card
Getting PAN card is the first and foremost step towards starting a sole proprietorship business. It does not need to be in the name of the firm. Proprietor’s personal PAN card will serve the purpose.
Income Tax Payment
There is no difference between a sole proprietorship and its owner. This is because a sole proprietorship has no different legal entity. Therefore, the net profit of the business will be the income of the proprietor. If this income exceeds the taxable slab limit, which is Rs. 2,50,000 for individuals and HUFs, then there will be tax liability.
It’s necessary to pay IT to avoid penalty and an income tax notice.
Income Tax Return
You need to file income tax returns if your income exceeds the taxable limit. But, you can still file a Nil Return of your income if your income is less than the taxable limit. Filing a Nil return has the following benefits given below.
GST Returns
All registered businesses need to file a GST return. A GST return can only be filed online.
The type of return and the due date for filing varies with the type of business.
Tax Audit
Tax audit is not compulsory for a sole-proprietorship. You need it only if the turnover of your firm exceeds Rs. 2 Crore.
What documents do I need?
For seamless compliance, you need the following documents.
- Photographs of the proprietor
- Purchase and sale invoice
- Expense invoice
- Balance sheet
- Profit and loss account
- Proof of address
- Date of birth proof (Class 10 certificate/Birth certificate)
- Bank account statement
What is a Proprietorship?
A proprietorship is a company with only one owner and is not registered with the state, unlike a limited liability company (LLP) or corporation. Starting a proprietorship doesn’t require any paperwork — you just go into business to form a proprietorship. Although you do not need to file paperwork to set up a proprietorship, you must obtain business licenses and permits just like any other form of business.
Who Can Opt for Proprietorship?
Any person who wants to start a business with less investment can opt for this type of business. It can be started with an interval of 10-15 days. Also, the control in business is completely in your hands.
Can a Proprietorship Issue Shares?
Proprietorship firms are controlled and managed by a single person and therefore they can issue shares or have investors.
What are The Compliances Required?
As a proprietor, you must file an income tax return annually. Also, if you are registered under GST then you need to file your GST return. A proprietor must also deduct TDS and file TDS return if it is liable to tax audit.
Who Can Start a Proprietorship?
Any Indian citizen can start a proprietorship firm.
What Businesses Are Run as Proprietorship?
Most local businesses are run as a sole proprietorship, from your grocery store to a fast-food vendor and even smaller merchants and manufacturers. This is not to say that large businesses do not operate as sole proprietors.
