- How to Register Sole Proprietorship Firm in India
- The registration process for a sole proprietorship firm in India is relatively simple and requires minimal legal compliance and formation costs. However, it is important to keep in mind that the proprietorship does not have a separate legal identity from the owner, which means that the proprietor is personally responsible for all the liabilities and debts of the business.
- Key Features of Sole Proprietorship Firm in India
- Traditionally, sole proprietorship is the preferred way of setting up a small-scale business for most of businessmen. The main features of this business type clearly identify it from the other types.
- 1) Proprietorship requires one person
and basically a one-man show.
- 2) The business is owned by a single
person.
- 3) Due to the involvement of a single
person and minimum legal compliances, it is much easier to start and dissolve
the firm.
- 4) Tax-related and other legal
compliances are minimum.
- A sole proprietorship structure can be used by a service provider, a manufacturer as well as by a trader or a merchant.
- How to Establish a Sole Proprietorship Firm in India
- All the business structures need to follow the formation procedures and necessary registrations. This brief yet complete procedure for sole proprietorship registration will help you to get ready with the document requirements.
- 1. The proprietorship registration is
done under SSI/MSME Registration at H&G EBIZ PRIVATE LIMITED . The list of
documents is given further for your ready reference.
- 2. Apply for the service tax number or
GST registration.
- 3. Obtain the service tax or VAT/GST
registration certificate from the authorities.
- 4. Open a current bank account.
- Though there are no other governmental formalities required for sole proprietorship formation, it may require certain registrations depending upon the business. For example, a firm dealing with import or export will need DGFT IEC code registration. For the registrations of GST and service tax, we highly recommend you to get the help of our professional services available at incredibly low service charges.
- Documents Required to Start Proprietorship Firm
- The documents required for the sole proprietorship is quite simple. Generally, it involves the basic documents to identify the proprietor and the firm.
- 1) Self-Attested PAN Card of Applicant
- 2) Self-Attested Aadhaar Card of
Applicant
- 3) Self-Attested PAN Card of Entity (if
any)
- This hassle-free registration process aloof of any real legal registration is the best feature of the sole proprietorship firm in India. It is also the oldest form of business in India. Applying for the necessary tax registrations and bank account is the only compliance to start the business.
