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Proprietorships stand as the simplest form of business ownership, where a single individual is responsible for all operations and liabilities. Offering unmatched autonomy and ease of setup, proprietorships are a popular choice for solo entrepreneurs and small-scale ventures. At Srprof, we recognize the significance of proprietorships and provide specialized support to ensure their success. From initial registration to ongoing compliance and growth strategies, our team offers personalized assistance tailored to the unique needs of proprietorship businesses. Choose Srprof for expert guidance and reliable solutions, empowering your proprietorship to thrive in today’s competitive landscape.
Sole Proprietorships are unregistered entities, which means that there is no requirement to formally incorporate them. However, their legal existence can be established by other tax and regulatory registrations which are mandatory. These include the MSME Registration, GST Registration, Shops Act Registration and opening a business bank account. Given below is a table that contains two lists. The first list informs abouts the minimum requirements to set up a Sole Proprietorship. The second list contains Proprietorship Firm Registration documents. Refer to these lists to successfully establish your Proprietorship business anywhere in India!
The Proprietorship Registration process in India is the easiest and simplest among all business structures. There is no requirement of a formal incorporation. You can straightaway start your business activities after you have fulfilled all minimum requirements mentioned above. However, after starting business operations, you must take certain mandatory registrations to establish your firm’s legal existence. Navigate through the steps below to complete the Sole Proprietorship Registration process in India.
The process of Sole Proprietorship Registration in India starts by preparing all the Proprietorship Registration documents. These documents include the KYC documents of the proprietor, and the proof of registered office address. Also an NOC from the owner of the office premises is required. A complete list of these documents have been listed above. Make sure they are accurate and contain the updated information.
The next step is to select a unique name for your Sole Proprietorship Firm. The name must be legally valid, and available for use. It must not be used by any other registered business. Also, the selected name must not infringe the intellectual property rights of a registered trademark user. Make sure that after selecting the name of your proprietorship business, you register it as a trademark. This prevents its misuse and plagiarism by other entities.
Sole Proprietorships are usually small-scale local businesses that qualify as MSMEs. You can obtain the MSME registration for your proprietorship business and avail numerous benefits. These include collateral-free loans, interest subvention on loans, timely payments by buyers, and 50% rebates on IPR registration. Moreover MSME registration Certificate will be crucial for opening a business bank account. We provide MSME Registration to Proprietorship Firms throughout India.
Eligible Sole Proprietorship Firms must get GST registration for fulfilling all GST-related compliances. The applicant firm can submit the application and all GST registration documents required for a Proprietorship firm on the GST portal. As soon as the application is approved by the GST department, a GSTIN is allotted to the firm. This GSTIN can be used for all future GST-related activities.
Except manufacturing businesses, all businesses are mandatorily required to get the Shops & Establishment Registration. This includes Sole Proprietorship firms as well. The registration is obtained from the State’s Labour Department for which either an online or offline application is filed. The application must be accompanied by all the documents listed above.
Based on the nature of business activity and the registered office location of the Proprietorship, certain licenses must be mandatorily obtained. For instance, IEC Code is required if the Proprietorship business conducts import / export activities. Another example would be a FSSAI license required if the business is dealing in food related activities.