Sole Proprietorship Registration in India

The definition of ‘Company’ signifies any enterprise which is formed under the Companies Act, 2013. The procedure of Sole Proprietorship Registration of a company in India relies upon the type of the company.

Sole proprietorship regsitartion in India.

When a business or firm is held and governed by one individual it is referred to as a sole proprietorship firm or company. In this type of business a single individual takes care and controls the total operation and functioning of the business. The proprietor of the business is the only individual to enjoy the profit of the business and he has to bear the losses. There is no specific law that directs a Sole Proprietorship Registration firm. Proprietors registration of such corporations have unlimited business liability. This comprises that proprietor personal assets shall be attached in order to fulfill business liability claims. It is not possible in order to transfer the ownership of a Sole Proprietorship firm from one individual to another.

Sole Proprietorship Registration

For a sole proprietorship registration firm or business, registrations are not essential as they are recognized by alternate registrations such as GST registrations. Though its liability is unlimited and it also does not have a continuous presence.

Sole proprietorship registration is needed for the individual owned business for doing business, hence it is recommended to get the given registrations in order to run the business function smoothly and legally. An individual could select any of registration from the below:

•    Shop and Establishment Registration under the laws of the individual states.

•    Registering as SME.

•    GST Registration.

The documents required for a Sole Proprietorship registration are:

•    Aadhar Card.

•    Registered office proof.

•    PAN Card of the proprietor.

•    Electricity/ Water bill (Business Place).

Sole Proprietorship Registration Process

1.    Applying for PAN. If an individual already has one this step is not needed.

2.    The next step is naming the business.

3.    There is no formal registration needed, but the next step is to open a bank account in the name of commerce.

4.    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.

5.    An individual could also register for GST if the turnover goes beyond Rs 20 lakh.

6.    An individual could also get a Shop and Establishment registration done.

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Author:

eStartIndia Team