Sole Proprietorship Registration2022-09-26T20:15:33+05:30

Online Sole Proprietorship Registration

Sole Proprietorship is the simplest form of business organisation that is carried on by an individual person (known as a sole proprietor). A person who wants to start a business with minimal investment and low compliance cost can opt for this type of business form.

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    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.

    Various Registrations for Opting Sole Proprietorship 

    • 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/

    Advantages of  Online Sole Proprietorship Registration

    • Easy to Form

      A sole proprietorship firm is easy to form as it is an unregistered entity. There is no specific registration mandated by the government to start a new sole proprietorship firm. However, in order to open a bank account of the firm, it is suggested to go for above-mentioned registrations.

    • Control on Decision making

      In sole proprietorship firm, all the business decisions are taken by one person, which makes functioning of business simple and easy. He may bring desired changes in business operations, strategy, structure etc. without any consent from third party/partners as he is the sole owner of business.

    • No minimum capital required

      There is no minimum requirement of capital to start a sole proprietorship firm as per any statue. A sole proprietorship firm can be formed even with minimum infusion of capital (For Example Rs. 1000/-, Rs. 5000/-, Rs. 10,000/- and so on)

    • Lesser Compliances

      Unlike companies and LLPs, a sole proprietorship firm is not regulated by any specific government bodies, so it is not required to comply with the requirements of regulators like MCA, SEBI, RBI etc. However, a sole proprietorship firm has to file prescribed returns under GST law, Income Tax law etc. (as may be applicable)

    • No Sharing of Profits

      In a sole proprietorship firm, the profits from the business would go towards the proprietor. He can retain all the profits from the business and would not have to share his profits with any third party or partner.

    Minimum Requirements for Online Sole Proprietorship Registration

    • Individual Person as a Sole Proprietor

    • Name of the Business Enterprises

    • Identity Proof of the Proprietor

    • Address Proof of the Proprietor

    What is included in our Online Sole Proprietorship Registration package?

    • Consultation on the process of change of name

    • Verification of documents

    • Registration under Shops & Establishments Act

    • GST Registration

    • MSME (Udyam) Registration

    • CA Business Certification (wherever required)

    Procedure for Online Sole Proprietorship Registration

    • Collection of required Information and Documents

      In the first step, we shall collect the required information and documents as per the checklist. We shall verify and confirm the documents and information provided and then proceed towards next step.

    • Preparation of Application for Various Registrations

      Once we receive all the required documents, we shall then prepare the documentation for different kinds of registrations for the Sole Proprietorship firm.

    • Submission of Application

      Once the application is ready, we shall submit the same with respective authorities and make the payment of applicable government fees. A temporary acknowledgement will be provided after successful submission.

    • Get Registration Documents

      After successful submission of application, you shall receive the registration certificate from the respective authorities within a given period of time.

    • Opening of Bank Account

      Applicant can now submit the registration certificate and other required documents to the bank in order to open the current account and start the business operations.

    Documents Required for Online Sole Proprietorship Registration

    • PAN card of proprietor

    • Aadhaar card of Proprietor

    • Photograph of Proprietor

    • Name of the Enterprise

    • Contact details such as Mobile Number and Email Id of the Proprietor

    • Address Proof for Firm such as Telephone Bill / Post-paid Mobile Bill / Electricity Bill / Property tax receipt / Municipal Khata Copy / Legal ownership document etc.

    • Any other Information as may be required

    FAQ

    Is it mandatory to register a sole proprietorship firm in India?2021-11-02T17:59:30+05:30

    No, registration of sole proprietorship firm is not mandatory in India. However, in order to open a Bank Account or to obtain any kind of finance or to deal with business supplier a sole proprietorship firm should obtain some kind of registration.

    Does a sole proprietorship firm have perpetual succession or continuous existence?2021-11-02T17:58:53+05:30

    No, a sole proprietorship firm shall not have perpetual succession or continuous existence. A sole proprietorship firm shall be dissolved after death of sole proprietor.

    What is the minimum capital needed to form a sole proprietorship firm?2021-11-02T17:57:07+05:30

    There is no prescribed minimum capital for starting a sole proprietorship firm.

    Can a salaried person or a person in employment form a sole proprietorship firm?2021-11-02T17:55:43+05:30

    Yes, a salaried person or person in employment can form a sole proprietorship firm. However, one needs to check the employment agreement or terms of employment if it has certain restrictions.

    Is it required to have a Sole Proprietorship Firm’s book audited?2021-11-02T17:53:03+05:30

    It is not mandatory for a Sole Proprietorship Firm to get its book audited. However, it shall get its book audited as per Income Tax Law / GST Law if its turnover crosses specified threshold.

    Can I register my Sole Proprietorship Firm on my home or residential address?2022-05-19T12:43:14+05:30

    Yes, you can register the company at your residential address.

    Can NRIs start Sole Proprietorship Firm in India?2021-11-02T17:51:41+05:30

    Yes, NRI’s are allowed to start Sole Proprietorship Firm. However, such sole proprietor has to follow the FDI Guidelines and restrictions for same.

    How can I protect the name of my Sole Proprietorship Firm in India?2022-05-19T12:43:07+05:30

    You can protect the name of your Sole Proprietorship Firm or Brand name by applying for Trademark registration. For more details you can visit – https://registrationarena.com/trademark-registration/

    Do Sole Proprietorship Firm require TAN registration?2021-11-02T17:42:29+05:30

    TAN is Tax Deduction and Collection number which is required by a proprietor for deducting tax at source (TDS) as per Income Tax laws.

    Can I get Startup Registration for my Sole Proprietorship Firm?2021-11-02T17:16:52+05:30

    No, you cannot get Startup Registration for a Sole Proprietorship Firm. Only a Private Limited Company, LLP and a Partnership Firm are eligible for it. You can visit https://registrationarena.com/startup-india-scheme/ for more details

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