sole proprietorship

sole proprietorship

The sole proprietorship is a most common form of doing business in India. Also, Most of the businesses in India are based on sole proprietorship. As per Indian law, there is no need to register this up to a certain limit.

Sole proprietorship is a business which is run by single hand. In this type of business, there is no separate legal entity between the owner and business.  Moreover, Business is work and owns by only one person, that one person is responsible for all the activities which include debts, loans, loss. He may use the company name other than his own name. Process of registration of a private limited company in Delhi under this has also become important as well as simpler.

For example:  Roadside vendors also come under the category of a sole proprietor. Hence, they do not require any kind of registration because of their small business. In medium scale and large scale, it is very essential to register the business/firm under various Indian Laws.

Three ways to register a sole proprietorship firm in India:

  • By acquiring a licence of Shop Act
  • By way of Goods and service tax or ,
  • Registration through udyog adhaar

By Acquiring License Of Shop Act

This was a very universal form of getting sole proprietorship catalog in India. In this act, registration can does electronically through the websites of State Governments. After digitization of this whole process, registration of business/firm has become very effortless. A scanned copy of documents is also done online. The documents which are valid for registration are as follows:

  • Registry of place where business has establishes
  • Copy of rent agreement and
  • Photographs of business place
  • Electricity bill and water bill also plays an important role in registration to approve.

By Way Of Goods And Service Tax

After an introduction of GST, this has become the most important form after the shop act for the sole proprietorship registration of firm. Registration process is very simple as it can be done by sitting at home because registration is available online on the website of Government of India i.e., www.gst.gov.in. Person do not have to travel far in order to get firm register. The business entity which has a turnover of more than twenty lacks has to get them to register under this act. Also, Important document for registration to be get done:

  • PAN card of the business/proprietor
  • Registry of place or rent agreement of place for address proof
  • Bank details of business or proprietor
  • Adhaar card of the proprietor

Registration Through Udhyog Adhaar

Udyoog adhaar have a unique identification number which helps in a registration of sole proprietorship in India. The firm got register under the Ministry of MSME. It is very convenient to avail benefit under this scheme as this scheme is different from the other two schemes. Thus, Ministry of MSME makes it simpler for a sole proprietor to get itself register with the help of Udyoog adhaar. It has reduced manual paperwork as registration has become digitized and eliminated traditional methods such as EM-I and EM-II.

Through this method, Proprietorship firm registration get done in India