PROPRIETORSHIP FIRM REGISTRATION

PROPRIETORSHIP FIRM REGISTRATION

In India, Sole Proprietorship is one of the easiest form of business, because there is no specific law governing it, and has very less procedures to follow. If we talk about the meaning, then it means that type of business which is owned by a single person. In other words we can say that, in sole proprietorship firm a single person is the owner of the business. Along this, the power of decision making and the management of the business is under a single person. But, on the other hand the sole proprietor have to bear all the losses solely, thus he/she will have unlimited liability.

DOCUMENTS REQUIRED FOR A SOLE PROPRIETORSHIP

Aadhar Card Nowadays, aadhar card becomes necessary for applying any registration in India. Along this, a person can file income tax return only when his PAN card is linked with the Aadhar number.

PAN Card As we have discussed above, that you can’t file the income tax return, if you don’t have a PAN. So, if you don’t have a PAN number, apply for that first. The approximate cost of applying for PAN card is about Rs.110. Some documents are required for applying, such as :- a scanned photograph, ID proof and address proof.

Bank Account After getting the Aadhar number & PAN, the person can visit any bank for the process of account opening with them. Along the Aadhar number & PAN, you are required to carry identity proof or address proof also. For the process of opening a current account, you have to submit a document of GST registration to the bank officials.

Registered Office Proof

• In case of rented property :- Agreement of rent and NOC from the landlord must be present.

• In case of a self-owned property :- Electricity bill or sale deed or any utility bill.

LIST OF REGISTRATIONS REQUIRED FOR A SOLE PROPRIETORSHIP FIM

Along with the above documents, there are some registrations which are required in establishment of the firm.

1. Registering as SME :- You can make yourself registered as a small and medium enterprise (SME) under the MSME act. And application for that can be filed electronically.
However, the registration as an SME is not necessary but this will be beneficial when it comes to taking a loan for a business. Because, government runs various types of schemes for SMEs, where loans are provided along concession in rate of interest.

2. Shop and Establishment Act Licence :- According to the local laws, it is necessary to obtain “The Shops and Establishment Act Licence”. The issue of this licence is based on the business & number of employees. Basically, all the sole proprietors who own a shop or set up a business establishment must obtain this licence.

3. GST Registration :- In case of having annual turnover more than 40 lakhs, then you are eligible to get registered under GST. Along this if you are involved in online business (selling products through Amazon, Flipkart etc.)then you are required to obtain the GST number. For getting yourself registered under the GST, you need the following documents :-

• PAN card, photo & Aadhar card of the proprietor
• Proof of the place of business (agreement of rent, electricity bill, etc.)
• Copy of Bank Statement (1st page for verifying bank account number, address & IFSC code).

Registration of GST is easy and can be done through GST Portal. Basically you can get your GST number under 3-4 days of submission of application.