Unlike how a private limited company and limited liability partnership is formed, a sole proprietorship does not need to get itself registered anywhere.
But if one wants to register their own firm, then getting it registered via online mode would be the best and the most practical way of getting a Proprietorship Firm Registered in India.
A sole proprietorship can be started at any point in time.
All one needs is a bank account. Most banks nowadays insist on a profession’s tax registration or a shop and establishment registration in order to open a bank account for a sole proprietorship.
● One person required as a single entrepreneur
● Single owner of the business entity
● Easy to start
● Easy to wind-up
● Complete control by the entrepreneur
● Lower cost of formation and compliance
❏ Lack of resources
❏ Unlimited liability
❏ Lack of credibility
❏ Unable to raise funds easily
❏ Cannot add partners
❏ Has to manage on his own
❏ Enjoy profits and suffer losses, all by himself
As a sole proprietor, the main primary objective of the firm would be opening a current bank account on the name of the business, so most of the banks can ask for any legal certifications for the business.
Whether it is a service-based business or a manufacturing or trading business, some of the most commonly used documents that are required in the Process of Proprietorship Firm Registration:
ID and Address Proof as PAN Card, Passport, Voter ID, Aadhaar Card, Driving License Copy of the Proprietor
➔ One business place address proof i.e. if the property is on a rented space, one will need a rent agreement and no-objection certificate from a landlord and if the property is on its own, they will need electricity bills or any other address proof
But for VAT, one needs a security amount as fixed deposit or requires a minimum of two surety dealer that is already registered in that state VAT registration.
Sole Proprietorship Firm Registration is single-person firm registration. Simply stated, it is a firm that is enabled to do business in India with less compliance and fewer cost expenses.
A sole proprietorship firm requires a minimum of two legal entity proof for the opening of a current bank account.