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22 July 2023
A sole proprietorship firm is a business run by an individual. It can be considered an individual or a whole business entity. He is the sole owner of the trade or entrepreneur. The proprietorship takes around fifteen days in incorporating the entity. This short duration is the reason why startups prefer it over any other type of company.
It does not require formal registration because its GST registration recognizes it as a business entity. However, it comes up with unlimited liability and hence, does not frequently exist.
If you want to register your sole proprietorship, consider this checklist of various licences:
Proprietorship Firm Registration Process
As aforesaid, there is no specific registration process to undergo for it. The reason is foretold. There are a few essential registrations that fulfill this requirement. These registrations can be the following:
This registration is for Small and Medium Enterprises. However, it is not compulsory to formally register. But, those who are willing to get loans and get legal support often get registered as MSME. This MSME registration service is available online. It’s a simple process that any sole proprietor can follow with ease.
Like MSME registration, the Shop and Establishment Act Licence registration is not compulsory for all sole proprietors. But, the local laws push to obtain it for running your business smoothly in your region. It can be applied to the Municipal Party. The number of employees in your company defines if you’re eligible for it. To apply for this licence, the applicant can apply with the state government company registration website.
The sole proprietor can apply for the Goods and Services Tax registration (GST) given that his annual turnover exceeds INR 20 Lakh for normal category businesses and INR 10 Lakh for special category businesses (running in the North-Eastern states).
Online selling also requires sellers, such as Amazon, Flipkart, etc. to have a GST registration number. So, if you’re an e-store owner, you need this number, but do not need the sole proprietorship registration then. In the nutshell, the proprietor should have GST registration for easy and seamless taxation throughout all transactions.
Checklist of Documents Required For Registering a Sole Proprietorship
To commence this business, you should have the following documents:
In addition, there should be a current account in the name of this entity. For opening it, you should present these documents for authentication:
Registration Process Consulting by CAAQ
Here at CAAQ, we provide end-to-end consulting to register a sole proprietorship business. Following these steps can help you to easily register.
First, connect with our professional team for guidance on how to successfully proceed with registration. This procedure is incomplete unless you register for various other registrations, such as sales tax, service tax, import/ export code, and professional tax. We help you get through all hassles.
Our team has experts who can guide to connect with those who are authorised for booking your application. In addition, we frequently help you in knowing the status and progress in your application. Our experts are certified, trained, and have hands-on experience in coming across all challenges skillfully. So, you may hire our consultants for smooth registration of sole proprietorship.
We provide start-to-finish support in registering your entity. You may receive the certificate of incorporation within 15 days.