Sole Proprietorship Firm Registration
What is Sole Proprietorship Firm Registration?
Before you learn about sole proprietorship firm registration, you need to understand what is a sole proprietorship firm. A sole proprietorship is an organization where one person manages the business. It does not require any registration. Any person who wants to start a business with an investment can undoubtedly choose this type of investment. The control of the businesses is entirely in the hands of a single person.
A single person can start their business from home or any other premise with a minimum amount. He would be responsible for all the profits and losses of the business as he would be controlling the business and managing it.
Anybody who wants to start a business can go for sole proprietorship registration. It can be started in any period of 10 to 15 days. The best part about getting into this business is that you are entirely responsible for the business.
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The procedure for proprietorship registration is as follows :
- Firstly the sole proprietor needs to apply for the PAN card. If the sole proprietor already has a pan card, they can proceed with the second step.
- The next step is to keep the name for the sole proprietorship.
- Sole proprietors do not need to open a bank account featuring the name of their business. All the transactions related to the business should be done through this bank account.
- There is no specific registration for proprietorship; The sole proprietor should require some essential registration for the business. The basic registrations include obtaining the registration certificate mandatory under the shops and establishment act of the state where the business is located. The sole proprietorship must also register for the GST if the business exceeds 20,00,000. The sole proprietorship can also be registered under the small and medium enterprise act. Even though it is not compulsory, it is good to be registered under this.
Advantages of a Sole Proprietorship Firm Registration
Minimum compliances
The best part about running a sole proprietorship is that one person can start it. There is minimum compliance to which you need to adhere to get it incorporated.
Control of the business
Being a sole proprietor, you will have complete control over your business as you look after all the elements of the business. Secrecy can be maintained here.
Seamless decision-making process
When you run a sole proprietorship company, you can take all the business decisions instantly without consulting anyone.
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Documents required for Sole Proprietorship Registration
The documents required to register the sole proprietorship are as follows
- Aadhar card
- PAN card
- Bank account
- Registered office proof
- Certificate or license issued by the municipal authorities under the shops and establishment act.
- Sales and income tax return
- A license issued by any registering authority, including a certificate of practice issued by the institute of cost accountants of India, Chartered Accountants of India institute of company secretaries of India, and Food and Drug control authorities.
- The complete tax return is mandatory in the name of the sole proprietor, where the income of the company is reflected.
- Scanned copy of a canceled cheque
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GST registration for a sole proprietorship
GST registration for proprietorship can be obtained by submitting the following documents :
- PAN Card of the proprietor
- Digital signature certificate of the authorized signatory
- Consent by the proprietor to get GST.
- Photograph of the authorized signatory and the proprietor.
- Bank account details, including the scanned copy of a canceled cheque with the business entity’s name, IFSC code, and bank account number.
- Declaration of the authorization to the authorized signatory
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