Process of Sole Proprietorship Registration in India

Sole Proprietorship Registration in India is single-person registration. For registering a Proprietorship firm requires no formalities or registration. It is online registration with minimum and easy documents for registration. It’s a very simple process with less compliance and fees. It’s also a very popular form of business in India. A sole Proprietorship needs a minimum of one person for registration. The single owner is called the sole proprietor of the business. The registration of a sole proprietorship firm consists of different types of registrations like GST registration, MSME registration, Gumasta license or shop act license, etc as per government of India rules. There is no proper business registration for sole proprietorship firms. A sole proprietorship is a form of business organization where the whole business is managed by a sole owner. So, any individual who wants to commence a business with minimal investment can opt for this type of business form. The procedure for registration for a sole proprietorship firm is – 1. Apply for the PAN card 2. After obtaining a PAN card, or when the proprietor already has a PAN card, the next step is keeping a name for the sole proprietorship business. 3. The next step of the registration process is opening of a bank account in the name of the business. Hence, all the business transactions will be held through the current bank account. 4. There is no specific registration required to start a sole proprietorship firm, certain basic registrations are required to be obtained by a Sole Proprietorship Registration in India for doing business. 5. The basic registration required by a sole proprietorship is – The documents required for the Registration of a Sole Proprietorship firm are given below: 1. Self-attested copy of the Aadhar card of the Proprietor – The income tax return can only be filled out when the proprietor has linked his PAN with the Aadhar card. 2. Self-attested copy of the PAN card of the owner 3. Current Bank Account 4. Business office proof. E.g., Electricity bill and rental agreement, etc. 5. Passport-size photograph of the Proprietor. 6. E-mail ID and mobile number for communication purposes 1. PAN card of the Proprietor. 2. Name and address of the business 3. Bank account in the name of the sole Proprietorship firm 4. Registration under the Shop and Establishment Act of the respective states 5. GST Registration when the aggregate turnover exceeds Rs. 20 lakhs. The benefits of registering a Proprietorship firm are as follows: 1. Fewer compliances – The sole proprietorship business can be started easily by just one person. There is minimum need of compliance that is required to obtain the formation. 2. Control of the business – The sole Proprietor have complete control over the business. Since he is the only person, having the Sole Proprietorship Registration in India, secrecy can be maintained. 3. Seek minimal investment – The business model of sole Proprietorship is a low-cost business idea. It is generally chosen by small businesses like retail, grocery shops, etc. 4. Attracts lower taxes – The tax authority doesn’t treat the Proprietorship firm and sole Proprietor differently. Thus, they do not need to pay separate taxes. The list of disadvantages of Sole Proprietorship is given below: 1. Unlimited liability – There is no limit to the liability of the sole owner or sole proprietor. He is personally liable for all the transactions in which he enters the business. Suppose, he incurs a loss then he will have to bear the loss out of his personal estate. 2. No perpetual succession – There is no guarantee of Sole Proprietorship Registration in India means it can come to an end anytime if something happens to the sole owner taking care of the business. It can shut down anytime. This can make the business less reliable and difficult to gain public trust to expand the business. 3. Difficult to raise funds – It becomes difficult to raise funds because the sole owner is the only person who can invest in the business. The Sole Proprietorship requires opening a bank account in the name of the business, a Sole Proprietorship Registration Certificate under the Shop and Establishment Act of the respective state and GST registration. The Sole Proprietorship Registration in India process takes approximately 10 days, subject to departmental approval and reverts from the respective department. In this article, we have discussed the process for sole proprietorship registration, so in case you want more information, you can contact us. We are offering online legal services to our clients. We prepare the documents required for sole proprietorship registration and we can guide you till the completion of the registration process. It is always beneficial to avail support from an expert who is responsible to assure delivery of the registration without much complexities. Here are some of the reasons to apply for Sole Proprietorship registration online as follows: 1. Easy to start: A Sole Proprietorship Registration in India is easy to start a business. It requires minimum capital, registrations and compliances. 2. Business name: The name of the business is not getting registered. It must not be an infringement on an already registered business trademark because this business is not compulsorily registered, anyone can use the same name. A sole Proprietorship is a type of business simplest to start. They don’t need formalities like registrations or licenses. The Sole Proprietor is solely responsible for all the liabilities of the business. We have understood the Sole Proprietorship registration online and the process of the basic registration under the Shop and establishment act, GST registration, and Udyam registration. The documents required under this Sole Proprietorship Registration in India are also very less. The fees charged under government and professional charges are also minimal in comparison to the other business types' registrations. Onlinexbrl.com offers you all kind of Sole Proprietorship Registration Solutions. You will also get your query resolve with expert assistance with us. For Now, visit our platform to get more update with our related services. What are the Steps of the Process for Sole Proprietorship Registration in India?
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