A sole proprietorship is a business that is established and controlled by the single person. A proprietor is a person and not an entity so, both the proprietor and the entity are the same under the eyes of the law. The major benefit of Proprietorship is its ease of formation in countries like India. The article throws limelight on the Proprietorship Firm Registration India.
Registration of Sole Proprietorship
There are no specific laws to govern the registration of Sole Proprietor Firm Registration India so, they are easy to form. The documents for the registration process are minimal, and the requirements are easy to fulfill. Any Indian citizen can start a legal entity in India with minimum regulatory compliance as there are not constraints on the minimum investment needed too. Sole Proprietorship is the right choice for the micro, small, and unrecognized sectors. There is no specific mechanism designed by the Indian government for the registration process. All you need is tax registration and business license to start a business your own as proprietor. One can obtain MSME and GST registration for the business in the name of the proprietor and start your business operations in no time.
As there is no specific process in place for the registration, anyone can use the same business name to run the operations in the country. However, if one wishes to protect a unique business name, they need to get the trademark registered on the business name.
Common Registration Compliance for Sole Proprietorship
You can get identity for the sole Proprietorship through different registrations and licenses. Here few standard registrations obtained for sole proprietor firm registration India.
You can obtain MSME (Ministry of Micro, Small and Medium Enterprises) registration on your business name for Sole Proprietorship to establish a business in India. By registering the business under MSME, your business will get a unique identification number. Alongside side, you will get many benefits offered under the ministry of MSME. Once your business is registered under MSME, you can avail many benefits offered by the government to the business owners/ establishments.
If you have a shop or establishment to sell goods and services to people, you can get your business registered under the shop establishment act. The proprietor should obtain TAN registration form the income tax department if the proprietor is making salary payments, and there exists a TDS deduction.
Your business should obtain GST registration if you as a proprietor selling goods and services beyond GST turnover. Most of the sates India call GST registration if the business has an annual revenue of more than 20 lakhs and 40 lakhs in the case of the traders. GST registration will be quite helpful if you are running the businesses that deal with the exchange of goods and services. The new GST registration process of GST is the replacement of old VAT and tax registration. GST registration is an excellent way of getting a new identity for the businesses. After you have registered your business under GST, it is important to adhere to the regulatory compliance of the GST. One should collect the tax from the customers and file GST returns.
Process of Proprietorship Registration
To initiate the process of registration for a sole proprietorship, you need to keep all the documents ready. You should look at all the methods of obtaining license for proprietorship firm registration India and choose most suited option for the business. All types of registration for sole proprietorship will be completed in a maximum period of week and you will be ready to run your business operations.