THINGS TO KNOW BEFORE YOU REGISTER YOUR PROPRIETORSHIP FIRM
A sole proprietorship is owned and run by one person and there is no legal distinction between the owner and the business entity. It is possible for the sole trader to employ other people, there is no compulsion for sole proprietor to work alone. The sole proprietorship is popular business form due to its simplicity, ease of setup, and nominal cost. A sole proprietor need only register his or her name and secure local licenses, and the sole proprietor is ready for business.
|1. Owners can establish a sole proprietorship instantly, easily and inexpensively.|
|2. Sole proprietorship carry little, if any, ongoing formalities.|
|3. Owners may freely mix personal and business assets.|
|4. Being your own boss is a great sense of satisfaction and achievement. You are answerable only to yourself and it is a great boost to your self-worth as well|
|5. Law does not require a proprietorship to publish its financial accounts or any other such documents to any members of the public. This allows the business to maintain confidentiality which is sometimes very important in the business world.|
|6. A proprietor will have complete control of the entire business, this will facilitate quick decisions|
Documents and Information Required:-
|1. Adhar Card|
|2. PAN Card|
|3. Mobile Number and Email Id|
|4. Bank Account details|
|5. Business Address proof|
| a. Rent agreement and NOC from landlord in case of rented property.|
b. If it is a Self-owned Property: Electricity bill or any other address proof.
BASICAll Inclusive Fees
PROAll Inclusive Fees
PREMIUMAll Inclusive Fees
|2. Application for registration under sole proprietorship to concerned govt. department.|
|Although not compulsory, It is beneficial to obtain a few registration to make business function smoothly-|
|a. MSME registration|
|b. Registration under Shop and Establishment Act|
|c. GST Registration|
Any Indian citizen with a current account in the name of their business can start a sole proprietorship. Requirement of registration arises depending on what business you are planning to establish. However,banks typically require/demand a Shops & Establishments Registration to open a bank account.
Most local businesses are run as sole proprietorships, from your grocery store to a fast food vendor, and even small traders and manufacturers. This is not to say that larger businesses do not operate as sole proprietors. Even some jewellery shops are sole proprietors, but this is not recommended.
.To start a sole proprietorship, you would need address and identity proofs, PAN card, all KYC documents and rental agreement or sale deed (in case of Shops & Establishment Act Registration).
ou can always choose to do so. The procedure is a little tedious, but it is possible. It is very common for sole proprietors to convert into partnerships and private limited companies at a later stage.
To open a current account, you need proof of the existence of your business. Most banks will ask for a Shops & Establishments Act Registration and GST Registration. In addition, you will need a PAN card and address and identity proofs.
Yes, You can have Multiple businesses if you are a sole proprietor.For example, if you wish to start a Franchise Business in India, they have a condition that your firm should be registered as a business entity other than a sole proprietorship. In thiscase, you can opt for Private or Public company regsitration.