A sole proprietorship is the simplest form of business structure that is owned, managed and controlled by the sole owner. The sole proprietorship is not a legal entity rather it just refers to a sole person who owns the business and is personally liable for its debts. This is one of the most popular forms of business structure for micro and small businesses operating in the unorganized sectors due to its simplicity ease information and nominal cost.
However, sole proprietorship is generally not suitable for the medium scaled and large scale businesses due to the array of disadvantages like unlimited liability, no separate legal entity, non-transferability and limited life of the business.
The government of India has not prescribed any mechanism for the registration of sole proprietorship firm. Thus, the registration of a proprietorship can only be recognized through tax registrations that the business is required to have as per the rules and regulations. These tax registrations may include GST Registration that must be obtained in the name of the Proprietor to establish that the Proprietor is operating a business as a sole proprietorship.
As the government doesn’t count Sole Proprietorship as a legal business entity, it has not given any discernible criteria to start one. However, some points that still should be kept in mind are as follows:
· You need to be a tax paying citizen of India
· You need to obtain GST registration for your business name.
· And, you need to obtain PAN Card for your business name.
In regard to the Sole Proprietorship registration, following documents are needed:
The procedure for Sole Proprietorship registration in India is as follows:
· Choose the name of the business.
· Check if the chosen business name is unique.
· File the online application for GST registration
· Upload the required documents.
· Obtain GST registration certification few days after filing the application
· Setup a bank account in the name of the sole proprietorship.
We, at Registrationwala provide end to end solutions for Sole Proprietorship registration in India. Our services include:
· Collection of basic document and information
· Application drafting
· Reviewing the application and making changes if needed
· Obtaining the GST registration certificate and delivering it to you.
Registrationwala.com is a leading legal consultancy firm providing the comprehensive services relating to company incorporation. Our expert team will provide you full-fledged assistance required for the seamless registration of sole proprietorship firm.