Online Sole Proprietorship Registration

A sole proprietorship or sole proprietorship firm is a form of business that is owned, managed and controlled by an individual person. He is solely responsible for day-to-day management of the business and arrangement of capital. As a sole owner he is fully entitled to the profits and losses of the business. All the assets and resources of the business are completely owned by the sole proprietor, and he is completely responsible for the firm’s liabilities and debts. The liability of sole proprietor is unlimited i.e., in case of any default in payment of dues or loans, his personal property can also be used to repay business debts. A sole proprietorship does not create a separate legal entity from the owner, i.e. the business and the owner are one and the same.

Generally, sole proprietorship does not have any specific government registration in India, however one can opt for various registrations such as Shops and Establishment registration, GST registrations, MSME (Udyam) registrations etc. Any person willing to start a grocery store, retail store, boutiques, shops, small factory, household shops etc. can go for a sole proprietorship firm.

• Shops and Establishment Act Registration

A sole proprietor can get his business registered under Shops and Establishment Act (also known as Shop Act License) of the respective state in which he is carrying out business. Every shop, office, godown, restaurant, cafe, factory, any other establishment etc. has to obtain this registration from the respective State Labour Department. The procedure for obtaining the Shop and Establishment Registration Certificate differs from state to state.

• MSME Registration

MSME registration also known as Udyam Registration recognizes business enterprises as micro, small and medium enterprises under MSME Act. A sole proprietor may get his business registered under MSME Act, which would help him to recognise his business and avail various benefits and subsidies under government programs and schemes. For detailed information, you can visit – https://registrationarena.com/msme-registration/

• GST Registration

GST Registration shall recognize a sole proprietor as a Supplier and enable him to collect tax from customers and issue a GST invoice in return. GST Registration is mandatory for specific suppliers, whereas it is optional and voluntary for others. Without GST registration, a sole proprietor can neither collect tax from his customers nor claim any input tax credit of tax paid by him. For detailed information, you can visit – https://registrationarena.com/gst-registration/