How to get sole proprietorship registration certificate in India?

The sole proprietorship is a type of company that is owned and run by a single person. The company owner and the company are not separate from each other. An individual will not be able to commence a sole proprietorship business without Sole Proprietorship Registration in India.

It is essential to get the company filed as per the provisions mentioned in the Shop and Establishment Act. A sole proprietor must register his business under the Shop and Establishment Act.

Ways to register a Sole Proprietorship

• Sole Proprietorship Registration under Shop and Establishments Act
• Sole Proprietorship Registration through Udyog Aadhar under Ministry of MSME
• Sole Proprietorship Registration through GST Registration

Sole Proprietorship Registration Process

The crucial steps to be taken Process for sole proprietorship registration are as mentioned below:

• Obtaining Aadhaar card and PAN Card
• Scanned copy of address proof and ID proof, these two are required at the time of applying for Aadhaar and PAN card
• Photographs
• Bank account opening
• Proof of office, if the property is rented then a rent agreement and No Objection Certificate (NOC) from the landlord. If the property is owned by the proprietor, he needs to submit property documents or any bills.
• Registration under the MSME Act
• Obtaining the Shop and Establishment Act License
• GST Registration
• Bank statement copy that includes bank account number, address, and IFSC code

Documents Required for Sole Proprietorship

If the company is to be registered under the Shops & Establishments Act

• Copy of PAN of the Sole Proprietor or owner
• Copy of Identity Proof (Aadhar/ Passport/ Voter ID)
• Bank Statement
• Copy of Address Proof
• Passport Size Photograph of the owner

If the company is to be registered through GST Registration

• Copy of PAN
• Copy of Aadhaar Card
• Proof of business location
• Copy of bank statement
• Passport size photograph

Obtaining a Sole Proprietorship Registration Certificate

The PAN card of the sole proprietor is used for important purposes like an opening bank account, acquiring various licenses, registrations and Sole Proprietorship Registration Certificate in India in the name of the sole proprietorship and at the time of filing the income tax return for the sole proprietorship firm. Thus, attaining a PAN card for the Sole Proprietor is the first and a major step in forming a sole proprietorship firm.

Features of Sole Proprietorship

• Single Ownership

The business is owned by only one individual and he has complete ownership on the business

• Common Identity

The identity of the firm and the owner is identified. The firm does not have an identity of itself.

• Ownership of Capital

The capital of the business is bought in by the owner and belongs to only him.

• Unlimited Liability
• One Man Control
• Profit –Loss share ratio

Profits earned and Losses incurred belongs to the sole proprietor of the business.

• No Special Legislation

Advantages of a sole proprietorship

• Less paperwork and documentation
• Simpler processes and fewer requirements with regards to filing of taxes
• Less complicated registration fees
• Simpler banking rules to follow
• Simplified business ownership

Disadvantages of a sole proprietorship

• Limited Ideas
• Unlimited Liability
• Lack of Credibility
• Inability to raise funds
• Further addition of partners cannot be done

Compliance's to keep in mind for Sole Proprietorship Registration

A Sole Proprietorship firm has minimal compliances as it is not a separate legal entity from the owner of the sole proprietor. The major compliances are related to tax and yearly compliances.

The three major types of the tax return to be filed are as follows-

• Sales Tax Returns
• Service Tax Returns
• Income Tax Returns

If you want to know more about the Sole Proprietorship Registration Certificate Process in India So, you can visit the source.

Source: https://medium.com/@singhparul/how-to-get-sole-proprietorship-registration-certificate-in-india-4ee2ff9966c5