Proprietorship Firm Registration

Proprietorship Firm Registration

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Proprietorship Firm Registration

Introduction

A sole proprietorship, also known as the sole trader, individual entrepreneurship or proprietorship is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.

The sole proprietorship is the simplest business form under which one can operate a business. It simply refers to a person who owns the business and is personally responsible for its debts. There is no specific provision prescribed by the government for the registration of the sole proprietorship firm.

Compliance Sagar will provide you all the necessary services under one roof and provide all registration you require and also guide for other compliances. You may get in touch with our team on +91 63772 78327 or email compliancesagar@gmail.com for Sole Proprietorship registration.

Advantages of Proprietorship Firm Registration

Ease for proprietor

Sole Proprietorships business does not require any specific registrations under any law. It depends on the nature of business as mentioned above for a proprietorship business. So, any person can start its business easily with a trade name of its choice. Any trade name can be used in case it does not clash with any brand name. The name does not require any approval from the registry.

Information not made public

The financial reports of Sole Proprietorships remain in private hands. Unlike Companies, Limited Liability Partnerships, etc. where financial statements and audit reports are made public for the users through MCA (Ministry of Corporate Affairs) portal. Even, the list of all proprietorships is not readily available with the Government officials.

Self Decision making

Since the Sole Proprietorship is managed and operated single handed, so there is no chance of conflict of ideas or decisions. Sole Proprietors have the right to do whatever he/she thinks is correct for the business.

No audit Restrictions

Sole Proprietorship does not require getting its accounts audited each financial year under any law. The audit will depend upon the nature of business and the threshold turnover limits specified for the conduct of the audit.

Less Compliance Cost

The compliance cost for the proprietorship firms is comparatively very less as compared to other forms of business.

Less Registration Cost

As there is no specific mechanism for getting the proprietorship firm registered you can opt for any registration of your choice and start the business with your individual PAN.

Types of Proprietorship Firm Registration

There are various types of registrations like GST Registrations, Shop Act License, MSME etc. through which we can get the firm registered. There is no specific law pertaining to selection of the trade name and can be any name of your choice and you can protect it by taking a trademark on the business name. Various registrations through which a firm can be established are as follows:
Goods and Services Tax Registration:

  • GST registration is one of the ways of getting your sole proprietorship business registered. You can apply for GST registration if you are a supplier of such goods and services that are required to get registered under Goods and Services Act.
  • If a sole proprietor is not covered under mandatory business registrations that are required to take GST registration it can also get voluntarily registered under the Act to get all the benefits of GST such as credit of tax paid on input of Goods and Services.

    • Shop and Establishment Act Registration:
    The Shop and Establishment Act is a kind of trade license which is granted by the State Authorities and every state has prescribed different rules an regulations to get oneself registered.
    If sole proprietor has a shop as place of business it can get itself registered under Shop and Establishment Act. Note: Shop means
  • A place where good are sold (Retail or wholesale)
  • A place where services are provided
  • An office, storeroom, godown, warehouse or workplace which used in connection with such trade or business

    • Food Safety and Standards Authority of India (FSSAI) Registration:
  • FSSAI stands for Food Safety and Standards Authority of India which is an organization that monitors and governs the food business in India.
  • Every food business operator involved in the manufacturing, processing, storage distribution and sale of food products must compulsorily obtain FSSAI Registration or License.
  • Food Safety and Standards Authority of India (FSSAI) Registration is mandatory for all the Food Business Operators (FBOs).
    • Micro, Small and Medium Enterprises Registration:
    Proprietor also can register its business under MSME. Sole proprietor can get its business registered under MSME through Udhyog Aadhaar. By applying for Udhyog Aadhaar any business can get itself registered in MSME and can avail its various benefits introduced by the ministry.
    Import Export Code (IEC) Registration:
    IEC Code is unique 10 digit code issued by Directorate General of Foreign Trade, Ministry of Commerce and Government of India. IEC Code is "Importer Exporter Code" for import or export in India, and mandatory for those who are involved in Import or Export of Goods or Services.
    If proprietor has a business of Import or Export, than it is mandatory to get IEC registration.

    Documents Required for Proprietorship Firm Registration

    Aadhaar card/ Voter ID card of individual

    Pan card of Individual

    Bank statement or cancelled cheque

    Address proof Owned: Electricity bill

    Address proof Rented: Electricity bill and Rent/lease agreement

    Photo of proprietor

    Process of Proprietorship Firm Registration

    Step 1 : Fill the questionnaire provided by our team.
    Step 2 : Provide us the all documents as per the category of your business mention above
    Step 3 : We will further apply for the registration you have opted for.
    Step 4 : Once your proprietorship business get registered we will provide you the Registration certificate