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Sole Proprietor Registration @ 3999/- ₹
- MSME Registration Udyog Aadhaar
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- Guidance to open local Bank Account
- Includes Government & Professional Fees
Sole Proprietor Registration
Are you looking for Sole Proprietorship Registration? Then you are in the place, we have registered many companies so far and we do all types of company registration in PAN India. In this article you will find each and every answer to your question, go through it and if you have any queries you may reach us on +91 8700 288 692
What is Sole Proprietorship?
It is the simplest business form under which single person can operate a business and is not a legal entity, It simply refers to a person who owns the business and is personally responsible for its loss. It can operate under the name of its owner, such as Chandan’s Nail Salon. The name is simply a trade name–it does not generate a legal entity separate from the sole proprietor owner.
Due to its simplicity the sole proprietorship is a popular business form, no difficulty of setup, and small charge. A sole proprietor want only register his/her name and lock local licenses, and the sole proprietor is ready for business. A distinct difficulty is that the owner of a sole proprietorship remains personally responsible for all the business’s debts. So, if a sole proprietor business runs into economic trouble, creditors can bring lawsuits against the business proprietor. If such suits are successful, the proprietor will have to pay the amount overdue with his/her own capital.
Who can apply for Sole Proprietorship?
Anyone can apply for sole proprietorship and it is the easiest form of business done in India since it isn’t governed by any specific laws. Under sole proprietor, the compliance’s are minimal and easy to fulfill. Any individual who wants to begin a business with fewer assets can choose for this type of business and It can be started in a time duration of 3-5 days. Also, the control of the business is in your hands.
What are the Advantages of Sole Proprietorship?
- Owners can begin a sole proprietor right away and economically.
- Sole proprietor carries little formalities.
- Sole proprietor not required to pay unemployment tax on herself or himself.
- Owners can freely mix business
What are the Disadvantages of Sole Proprietorship?
- Owners have to bear all losses, liabilities and debts of the business.
- Owners cannot increase funds by selling an interest in the business.
- Sole proprietors hardly survive the death of their owners.
How to register as a sole proprietorship?
The following documents are required to register a sole Proprietorship:
Aadhar card number is now a requirement for applying for any registration in India and also income tax return can only be filed if the individual has linked his PAN card with Aadhar number. Contact nearest Aadhar Seva Kendra if you haven’t got an Aadhar number yet, after applying for Aadhar card, a hard copy of the same is expected at the registered address in around 15-20 working days.
It can be applied online and it costs Rs. 110, more or less. Before you apply, you need a scanned photograph, address proof, and identity proof. The application can be submitted online by verifying it through Aadhar e-KYC.
Once the application is submitted, it is checked at NSDL for verification, and if NSDL finds the information right, it allots the PAN number within 7-8 days. Further, a hard copy of PAN card is expected at the registered address within 15-20 working days.
Once you receive your Aadhar card and PAN card, you can visit any bank for opening an account with them. Apart from these documents, you need to carry address proof and identity proof. For opening a current account, you have need to submit GST registration document to the bank officials too.
Registered office proof
- If it is a rented asset: NOC from a landlord and Rent agreement.
- If it is a Self-owned asset: Address proof or electricity bill.
Although sole proprietor doesn’t need any accurate registrations, he is advised to attain a few registrations to make his business function efficiently.
Register as SME
Under the MSME Act, you can get yourself registered as Small and Medium Enterprise (SME. The application can be filed online. Even though it is not necessary to register as SME, it is very valuable, especially at the time of taking finance for the company. The Government runs a variety of schemes for SMEs where loans are provided at the concessional rate of interest.
Shop and Establishment Act License
This license is not compulsory at all places, but it is mandatory to be obtained according to the local laws. It is issued by the municipal party and on the basis of the number of staff.
Companies are governed by the Companies Registry Act of 1860. They must be registered in the respective State Companies Registry to be eligible for tax exemption.
You have to register for GST if your annual turnover is more than Rs. 20 lakhs. Also, if you are doing online business through e-commerce you are required to get a GST number. Documents are required for registering under GST are as follows:–
- Aadhar Card, Photo and PAN card of the proprietor
- Evidence of business place (Electricity bill)
- Bank statement (first page of bank account number, IFSC code and address)
What are the Compliances required?
Three compliances are required:
- You should file Income Tax Return annually.
- You need to file your GST Return in case you are registered under GST.
- You should also deduct TDS and file TDS return if accountable for Tax Audit.
We provide the best services in India without any hidden charges, and also we deliver our service on time. We offer services to startups, companies like Private Limited, Public Limited, One Person, Sole Proprietorship etc. Whizgate is only company which connects you directly with the chartered accountant and we are here to help you and for any query contact us on 8700 288 692.