Sole Proprietorship Registration
Procedure for online
01
Raise Query
02
Upload Document For Proper Guidance
03
Make Online Payment
04
We will apply for Goods & Service Tax (GST) registration in the Name of Business. (4-5 Days' Process)
05
We will send you the Goods & Service Tax (GST) Registration Certificate.
06
Open a bank account in the name of the sole proprietorship.
07
Registering as SME (Optional, if required Charge Separately)
08
Shop and Establishment Act License (Optional, if required Charge Separately)
Documents Required
Only Scanned Copies are required
Pan Card
Copy of PAN Card of Proprietor
Address Proof
Identity Proof of Proprietor (Voter Card, Passport, Driving Licence)
Address Proof
Address Proof (Bank Statement, Mobile bill, Telephone bill)
Photo
1 Passport Size Photo of Proprietor
Registered Office Proof
If it is a Rented Property: Rent agreement and NOC from a landlord. If it is a Self-owned Property: Electricity bill or any utility bill or sale deed. (Must be less than 30 Days).
Required Business Name
Lets us know your Business Trade Name exactly how you will write it.
What you get
GST Registration Certificate
Shop & Establishment License (IF Required)
MSME Registration (IF Required)
Sole Proprietorship Registration - An Overview
A sole proprietorship is the simplest form of business that can be owned and controlled by an individual. There are no partners in the business. The sole proprietorship is not a legal entity rather it just refers to a sole person who owns the business and is personally liable for its debts. But it can be recognized as an unorganized business structure under the various departments based on the business set-up and category.
Advantages of a Sole Proprietorship
- Economical and less expensive: Can be started with even less capital
- The hassle-free registration process with less paperwork
- Less Compliance: One person can start a firm so minimum compliance work
- Ownership and control over business: As it is a One-person company so privacy and confidentiality is maintained
- Decision making: Instant or Free decision making is possible as there is no involvement of any second or third partner or member
Eligibility Criteria for Sole Proprietorship Registration in India
As the government doesn’t count Sole Proprietorship as a legal business entity, it has not given any discernible criteria to start one. However, some points that still should be kept in mind are as follows:
- You need to be a tax-paying citizen of India
- You need to obtain GST registration for your business name.
The steps to be followed for Proprietorship Firm Registration in Delhi include;
- Applying for PAN. If an individual already has one this step is not needed.
- The next step is naming the business which is required before registration of the Proprietorship Firm in Delhi.
- There is no formal registration needed, but the next step is to open a bank account in the name of the commerce for Proprietorship Firm Registration in Delhi.
- An individual may also register as a Small and Medium Enterprise (SME) as per the MSME Act, but it is not compulsory, however, it is beneficial towards being registered under the same.
- An individual could also register for GST if the turnover goes beyond Rs 20 lakh.
- An individual could also get a Shop and Establishment registration done.
Mandatory licenses to be obtained for a sole proprietorship?
It does not require any registration as such. The basic registrations required by a sole proprietorship are-
- GST registration.
- MSME registration.
- Registration Certificate under the Shops and Establishment Act of the state in which the business is located is generally required for current account opening.
FAQs on Sole Proprietorship Registration
Any Indian citizen with a current account in the name of his/her business can start a sole proprietorship. Registration may or may not be required, depending on the type of business that is planned to be established. However, to open a current account, banks typically require a Shops & Establishments Registration.
A Sole Proprietorship business does not take more than 15 days to set up and start functioning. This simplicity makes it popular among small traders and merchants. It's also much cheaper, of course. This is the other reason why it's the most widely used business structure.
Most local businesses are run as sole proprietorships, from grocery stores to fast-food vendors, and even small traders and manufacturers. That is not to say that larger businesses cannot operate as sole proprietorships, they can! Jewellery shops are sole proprietors, but it is not recommended.
This depends on the business you're in. It is compulsory for any business whose turnover in a financial year exceeds Rs 20 lakhs (Rs 10 lakhs in the case of North-Eastern states) to get a GST registration. For businesses that are involved in selling goods or services to customers out of a commercial establishment, it is mandatory to register under the Shops and Establishments Act.
Yes, it is much cheaper to run an LLP than a private limited company. Mostly because compliances, such as an audit, apply to LLPs only after their turnover is sizeable. Most LLPs spend about half as much as private limited companies, in their first year on registrations and compliance work.
The procedure involved is a little tedious, but it is possible. It is very common for sole proprietors to convert into partnerships or private limited companies at a later stage of their businesses.
Disclaimer: The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice. It should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state.
Disclaimer
The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice. It should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state.
