SOLE PROPRIETORSHIP REGISTRATION
A proprietorship is a type of business that is owned, managed, and controlled by one person. A Proprietor is the sole owner and decision-maker of the business. The proprietorship and proprietor are one and the same which makes the process of registration easy. Sole proprietorships are unincorporated businesses.
Advantages of choosing Sole Proprietorship
Smooth Registration Process and Lower Compliance: You would only be required to register with government departments like Income Tax & GST, which makes the compliance burden low and pocket friendly. On the other hand, entities like LLPs or Companies are registered with the Ministry of Corporate Affairs and have to file various statutory returns and be audited by a Chartered Accountant each year.
Sole Ownership: In Sole proprietorship, there are no partners, shareholders, or directors required and the proprietor(you) can easily operate this business with minimal documents and sole ownership. You shall have complete control over the assets, revenue, expenses, and all business operations.
Quick Decision-making: In a proprietorship, the business owner takes all business decisions. There is no consent or approval required from any other person.
Procedure for Registration of Sole Proprietorship
The procedure for incorporating a sole proprietorship firm is-
First step: Applying for PAN card, Aadhar card
Second Step: the next step shall be to keep a name for the sole proprietorship business.
Third step: the third step shall be to open a bank account in the name of the business.
Fourth Step: The proprietor needs to obtain the Registration Certificate under the Shops and Establishment Act of the state in which the business is located.
Fifth Step: Register for GST and Small and Medium Enterprise (SME) under MSME Act, though it is not mandatory, it is beneficial to be registered under the same.