Proprietorship Compliance
Get your proprietorship compliance done quickly with professional assistance
Pricing tailored to your specific requirements — get a free quote.
Service Scope
Fee Breakup
Application Updates
Support
Custom Pricing
Choose Your Plan
Get personalized pricing tailored to your requirements. Our experts will guide you.
30-Minute Expert Consultation
Get expert guidance for accounts, bookkeeping, payroll, GST, and income tax compliance.
- Tax Consultation
- Business Consultation
- Legal Consultation
- Experienced Professionals
Annual Accountant Service
Complete invoicing, reconciliation, and income tax filing through LEDGERS Platform.
- 1-Year Dedicated Accountant
- LEDGERS Accounting Software
- Monthly Bookkeeping
- Financial Statements
- Income Tax Filing
- Monthly GST Computation
- GSTR-3B Return Filing
Compare Features
| Feature | 30-Minute Expert Consultation | Annual Accountant ServiceRecommended |
|---|---|---|
| Tax Consultation | ||
| Business Consultation | ||
| Legal Consultation | ||
| Experienced Professionals | ||
| 1-Year Dedicated Accountant | ||
| LEDGERS Accounting Software | ||
| Monthly Bookkeeping | ||
| Financial Statements | ||
| Income Tax Filing | ||
| Monthly GST Computation | ||
| GSTR-3B Return Filing | ||
| GSTR-1 Return Filing | ||
| Delivery Time | 1 days | 7 days |
Service Overview
About this Service
Overview of Proprietorship Compliance
Sole proprietorship compliance involves statutory obligations under tax laws and sector-specific regulations, as there is no separate incorporation act governing proprietorships. The proprietor must file individual income tax returns (ITR-3 or ITR-4) reporting business income, maintain books of accounts if turnover exceeds prescribed limits, and comply with GST regulations if registered.
Key compliances include quarterly or monthly GST returns (if registered), TDS returns if deducting tax at source, maintaining records for tax audit if turnover exceeds ₹1 crore, and renewing specific licenses (Shop Act, FSSAI, etc.) as applicable. Proprietors must also pay advance tax if tax liability exceeds ₹10,000 per annum.
Unlike companies or LLPs, proprietorships face minimal statutory filing requirements with the MCA. However, proprietors must ensure separate business bank accounts for clean financial tracking and compliance with sector-specific regulations (import-export code, professional tax, etc.). The compliance burden increases significantly if the business crosses GST thresholds or employs staff requiring PF/ESI compliance.
Who Should Opt for This Service?
- Proprietors with GST registration requiring monthly/quarterly returns
- Businesses with employee PF/ESI compliance obligations
- Proprietors with TDS deduction requirements
- Businesses with tax audit applicable due to high turnover
- Entities renewing trade licenses and municipal registrations
- Proprietors optimizing tax compliance and advance tax payments
Note: Proprietorships do not file MCA returns; however, proprietors must maintain proper business records separate from personal finances for tax assessments and loan applications.
Checklist
Documents You'll Need
Keep these documents handy — our team will guide you through every submission.
Good to know: Accepted formats are PDF, JPG, PNG (max 5MB per file). Please self-attest all identity proofs — our team verifies every document before filing.
PAN Card
RequiredPAN Card of the applicant/directors
Aadhaar Card
RequiredAadhaar Card for identity verification
Address Proof
RequiredUtility bill or bank statement
Photograph
RequiredRecent passport size photograph
Business Address Proof
OptionalRental agreement or utility bill
Good to know: Accepted formats are PDF, JPG, PNG (max 5MB per file). Please self-attest all identity proofs — our team verifies every document before filing.
Who It's For
Who Should Opt For This?
Sole Proprietors
Individual business owners maintaining books and filing income tax returns.
GST Filers
Proprietors registered under GST filing monthly GSTR-3B and annual returns.
Presumptive Taxpayers
Small proprietors opting for Section 44AD presumptive taxation.
Professionals
Consultants and service providers under Section 44ADA or 44AE.
TDS Deductors
Proprietors with TAN deducting tax on payments to contractors and professionals.
License Holders
Proprietors maintaining shop act license and municipal registrations.
Process
How It Works
A transparent, step-by-step journey from your first call to completed filing.
- 1
Submit Documents
Same dayUpload your documents through our secure portal
- 2
Document Verification
1-2 daysOur experts verify and prepare your application
- 3
Application Filing
1-3 daysWe file your application with the concerned authority
- 4
Get Certificate
7-15 daysReceive your registration certificate
Free Expert Consultation
Need Help with Proprietorship Compliance?
Talk to our senior legal experts for free. Get clarity on documents, eligibility, and the entire process — no charges, no commitment.
Our experts are standing by right now
FAQs
Frequently Asked Questions
Everything you need to know about the service, timelines, and requirements.
Contact our support team
Proprietorships must file Income Tax Return if income exceeds the basic exemption limit, maintain GST compliance if registered, comply with any industry-specific licenses (FSSAI, Shop Act, etc.), and maintain basic books of accounts. There is no separate annual return requirement like companies.
Tax audit is mandatory if business turnover exceeds ₹1 crore (₹10 crore if cash receipts/payments ≤5%) or professional receipts exceed ₹50 lakh. It is also required if opting out of presumptive taxation under Sections 44AD/44ADA.
Proprietorships file ITR-3 if maintaining regular books of accounts and having business income. If opting for presumptive taxation under Section 44AD/ADA, they can file ITR-4 (Sugam). The form depends on the turnover and accounting method chosen.
If gross receipts exceed ₹25 lakh (business) or ₹10 lakh (profession) in any of the preceding 3 years, or if income exceeds the basic exemption limit, books of accounts must be maintained as per Section 44AA of the Income Tax Act.
Under Section 44AD, businesses with turnover up to ₹2 crore can declare income at 8% (6% for digital receipts) without maintaining detailed books. Under Section 44ADA, professionals with receipts up to ₹50 lakh can declare 50% as income. Both schemes require filing ITR-4.
GST registration is required if turnover exceeds ₹40 lakh (₹20 lakh for special category states) for goods or ₹20 lakh (₹10 lakh for special states) for services. Voluntary registration is available below these thresholds.
The due date is July 31 for non-audited cases and October 31 for audited cases. If the proprietor has international transactions or specified domestic transactions requiring transfer pricing, the due date is November 30.
Unlike companies or LLPs, proprietorships do not have a separate annual return filing requirement with any registrar. The main annual compliance is income tax filing and any GST or industry-specific license renewals.
Non-compliance attracts late filing fees (₹1,000 to ₹5,000), interest on tax due at 1% per month, disallowance of expenses, and potential prosecution for tax evasion. Persistent non-filing may result in best judgment assessment by the tax department.
Yes, proprietorships can be converted to private limited companies or LLPs as the business grows. This involves incorporating the new entity, transferring assets and liabilities through proper valuation, obtaining fresh registrations, and dissolving the proprietorship.
Need a Custom Solution?
Get in touch for a tailored Proprietorship Compliance solution designed around your specific requirements.