Sole Proprietorship Registration
When a business is owned and governed by one person it is called a sole proprietorship company. This type of business can be started in 7-10 days and hence makes it one of the most popular kinds of business to begin in the unsystematic sector, specifically among merchants and small traders. For a sole proprietorship business, registrations are not required as they are identified by alternate registrations such as GST registrations. However, it’s liability is unlimited and it also doesn’t have a continuous existence. A sole proprietorship is a type of business entity.
Benefits of Sole Proprietorship:
► No annual compliance intimation to any authority
► No certificate or no renewal of any license
► Tax benefits and rebates
► It is very easy to start without intimation to any authority for running their business except those where there is a mandatory requirement of license for the products but not for the status of the firm
► Independent existence means that it has no legal status which means the burden is limited up to own
► Easy access to opening current bank accounts
► Saving of money due to lesser compliance as required in other cases
► Liberty from maintaining accounting records up to a limit
► It is very easy to convert into another legal identity status at a later stage
► There is no separation between Sole Proprietorship and Sole Proprietor
Documents Required for Sole Proprietorship:
► Identity Proofs - PAN Card
► Address Proofs – Aadhar card
► Office Address Proofs - Rent agreement or sale deed with Electricity Bill
Checklist for a Sole Proprietorship:
► GST Certificate
► Shop & Establishment Certificate
► Import export code issued by DGFT
► FSSAI License for food business operator
► MSME Registration
► File Income Tax Return in the name of the proprietor where firm’s income is reflected