Knowing Sole Proprietorship: A Simple Business Framework
Introduction
Since a sole proprietorship is not subject to any particular legislation and does not have a distinct legal personality, there are no formal prerequisites for incorporating one. This model is used by many small firms because of its simple and easy registration procedure. Start registering as a single proprietor with us to explore the possibilities for your company concepts. Small enterprises are especially well-suited to this form. This post will describe all the necessary processes involved in registering a single proprietorship in India. Use our simple guide to register your firm get going quickly, and learn how to set up a sole proprietorship in just seven easy steps.
Documents Needed for Registration:
1. Registration Office Proof:
- Ownership: A recent utility bill, such as an electricity bill, or a receipt for business taxes that is no more than 30 days old
- Rental: A signed lease or the property owner’s No Objection Certificate (NOC)
2. Address Proof:
- Utility bills or bank statements
3. Identity Proof:
- Owner’s driver’s license, passport, Aadhaar card, or voter ID – PAN card Bank statements, or utility bills
How to Register a Sole Proprietorship:
Step 1: Identity Verification
- Collect the necessary identity papers, such as passport-size photos, PAN cards, and Aadhaar cards.
- Verify the relationship between Aadhaar and PAN, and correct any address or mobile number changes.
Step 2: Registration Office Proof Owned Property
- Present ownership receipt, Aadhar card, and NOC with ₹50 stamp paper.
- Rented Property: Please provide an NOC and commercial rent agreement on stamped paper along with your PAN or UID card.
Step 3: Shop and Establishment Act Licensure
- Get a trading license, also known as gummata, from the local municipal government for your businesses and establishments.
- Please provide the necessary paperwork together with documentation of your ID, business address, and any other papers asked.
Step 4: GST registration
- GST registration is essential if you engage in e-commerce or do business beyond state borders.
- Annual product sales of more than ₹40 lakhs or ₹20 lakhs for services.
- Apply online via the GST site, submitting PAN, Aadhaar, business information, and address proof.
Step 5: Opening a Bank Account
- Create a separate bank account for business transactions using documentation such as a PAN, Aadhaar, business registration certificate, and address evidence.
- Banks may also request extra documents such as an ITR4, PT certificate, labor license, or CA certificate.