Proprietorship Firm Registration in Delhi – How to Apply Online?

01 August 2023

A proprietorship firm, also known as a sole proprietorship, is a kind of business structure where an individual owns and operates the business. The proprietor is considered the sole owner who is responsible for all aspects of the business, including investments, profits, losses, and liabilities. This is the simplest form of business entity and does not require formal registration, except for certain licences and permits. They may be necessary, which depends on the nature of the business. In a proprietorship firm, the owner and the business are considered the same legal entity, and there is no legal distinction between personal and business assets or liabilities.

How to Apply for its Registration Online

Registering a Proprietorship Firm in Delhi involves several steps, including online application submission, document verification, and processing. Here's an outline of the process, required documents, and approximate processing time:

Application Process

Step 1. Visit the official website of the Ministry of Corporate Affairs (MCA) or the portal designated by the Delhi government for business registrations.

Step 2. Create an account and login to the portal.

Step 3. Fill out the online application form for registering a Proprietorship Firm.

Step 4. Provide necessary details such as the firm's name, address, owner details, and business activities.

Step 5. Pay the required registration fee online.

Documents Required for Verification

The aforementioned process will be incomplete unless you submit supporting documents for verification. Here is the checklist of those papers.

• Passport-sized photograph of the proprietor
• Identity proof of the proprietor (PAN card, Aadhaar card, or passport).
• Address proof of the proprietor (Aadhaar card, voter ID, passport, or driving license).
• Bank account details of the proprietor (cancelled cheque or bank statement).

Document Verification and Processing

After submitting the online application and required documents, the Registrar of Companies (RoC) or the concerned authority will review and verify the application.

• The verification process includes end-to-end examination of the authenticity of the documents, and it also ensures that the whole documentation is in compliance with the applicable laws and regulations.
• In the case of any discrepancies or additional information requirement, the RoC may communicate with the applicant via the online portal or through email.
• Once the documents are verified and the application is approved, a Certificate of Registration or Firm Registration Certificate will be issued.

Processing Time

The processing time for Proprietorship Firm registration can be different, which certainly depends on the workload of the authorities and the accuracy of the application and documents submitted.

Generally, the processing time is observed to be a few days to a couple of weeks long.

It's advisable to regularly check the status of the application on the online portal or contact the concerned authority for updates.

Note: The specific requirements, process, and processing time may vary based on the current regulations and guidelines issued by the Delhi government or the MCA. It is recommended to visit the official government websites or consult with a professional consultant or legal expert for the most up-to-date and accurate information regarding Proprietorship Firm registration in Delhi.

Eligibility and Requirements

To register a proprietorship firm in Delhi, you should have an idea about these requirements. However, the registration itself is not mandatory, it is suggested to obtain the necessary licences and permits to operate legally and avail benefits. Here are the requirements for registering a proprietorship firm in Delhi:

• Business Name: Choose a unique name for the firm and cross-check if the MCA website has its dupes. It can help you know that it does not infringe on any existing trademarks.
• Bank Account: Open a separate bank account in the name of the proprietorship firm to maintain financial records and distinguishing personal and business transactions.
• PAN Card: Obtain a Permanent Account Number (PAN) card for the proprietorship firm because it is necessary for various financial and tax-related purposes.
• Licenses and Permits: Depending on the nature of the business, specific licences and permits may be required. Examples include a Shops and Establishments license, GST registration, professional licenses (if applicable), health and safety permits, and any other industry-specific licenses.
• Business Address: Provide a valid address for the business premises. It can be the proprietor's residential address, but local regulations may have restrictions on certain types of businesses operating from residential premises.
• Proof of Identity and Address: Submit the proprietor's identity proof (such as PAN card, Aadhaar card, or passport) and address proof (such as Aadhaar card, voter ID, or utility bills) for verification purposes.
• Partnership Deed (if applicable): In case the proprietorship firm has partners, a partnership deed may be required. This document highlights the terms and conditions governing the partnership.
• Other Registrations: Depending on the specific industry or activities, additional registrations may be necessary, such as FSSAI registration for food-related businesses, MSME registration, or professional body registrations (if applicable).

Conclusion

Sole proprietorship registration in Delhi can be done online, requiring a unique business name, PAN card, separate bank account, relevant licenses/permits, and proof of identity/address. It is advisable to consult professionals for specific requirements.