If you want to own, control and manage your own business, the sole proprietorship is the best fit for you. It's the most popular business in the unorganized sector of India. You need not register it formally because alternation registrations like GST help to identify it. Your business activity and location define what individual or local tax registration you should go for. The most common ones are:
- Shops and Establishment Act
It is mandatory to register with the labour department under the shops & establishment act in India. The fee for application, government, and registration process differ when you shift from one state to another.
- Professional Tax (PT)
Every profession is taxable in almost every state, except in north India. You should come across what applicability is required. Then, go through enrollment of the entity. Get yourself registered as an employer under PT if you have a staff.
- MSME Registration (Also known as Udyam or Udyog Aadhar)
This registration brings a ton of benefits for micro, small and medium enterprises. You may register under MSME using your Aadhar card, which is an easy process. It's advantageous for every eligible business registered under the MSME.
- GST Registration
This is meant for all businesses that deal in goods and services. The GST tax is applicable on the turnover crossing INR 40 Lakh for the dealers of goods and INR 20 Lakh for service providers. Registration with GST is must.
- Intellectual Property Registration
This is extremely useful for brands or businesses that want to create trust in the market. It is essential for startups to prevent their trademark, copyright, designs, and inventions. For this, you need to go for intellectual property registration.
Benefits of a Sole Proprietorship
- Set Up in One Day
This business is the easiest to set up amongst all other business types. You may start it within a single working day.
- End-to-End Online Process
Being digitally-enabled, we help small businesses to carry out their registration & compliance procedures online.
- Minimal Compliance
The most substantial thing is that it requires minimal compliance. You need not go through account auditing & filing of annual return.
- Simple to Begin
It’s the simplest to begin with. We assist to establish using a few vital documents like PAN card and get through GST registration.
- Tax Benefits
The income through this proprietorship is taxable. You may also avail its tax benefits as per mentions in the income tax slab.
- Hassle Free Closure
There is absolutely no barrier in winding it up. You just surrender all registrations, licences and wrap up this business in no time.
Minimum Requirements to Fulfill
- Indian Citizenship: The proprietorship business is exclusively meant for the natives of India. For a sole proprietorship, the Indian needs to be above 18 years of age to enter into contract. The FDI is barred from it.
- Business Address: For it, one needs a commercial premises address for GST registration. It could be a mixed land premise. The Goods and Services Tax Department allows it, but not any residential address. It is non-permissible as per local municipality laws.
- Capital Requirement: The sole proprietorship is similar to the individual proprietorship. The law does not require any separate recognition of assets of the business or the proprietor. Therefore, you may invest capital in accordance with your requirements.
- New & Unique Name: The duplicate name of any business is objectionable. It should be new and unique to avoid duplicity. We help you find the one from the proposed names in the database of trademarks.
Documents to Enclose for a Startup
- Checklist of Owner’s Document
- PAN Card
- Aadhar Card
- Cancelled Cheque
- Two Coloured Photo
- Address Proof (Voter ID, Driving Licence, Passport, Bank Statement, Electricity Bill)
- Checklist of Business Address Proof
- Electricity Bill, Property Tax Receipt, Sale Deed, Registered Rent Agreement
- The aforesaid docs should not be older than two months.
- NOC from the Business Owner
We are here for your convenience and business compliance assistance. We get started upon receiving the online order at our website. As the order moves through the processing of the proprietorship setup, we start with documentation. This process is contactless and paperless, as you share all documents, & credentials online. Connect with us if you have any doubt.
The process gets started with the documentation of the proprietor. It also requires your business address where your commercial activities will take place. Ensure that the documents are updated & correct. Fill up the questionnaire & enclose all documents along with, quoting your order details.
- Brand Name Selection
This step is for selecting a unique name for your proprietorship business. The trademark register is where we start figuring out the right fit name, avoiding any violation of someone else's trademark.
- MSME/ UDYOG Aadhar/Udyam
For commercial transactions, you require a separate bank account. It requires two documents; one of these could be Udyog Aadhar. It enables you to enjoy facilities & benefits offered by Government Departments under the MSME Act.
- GST Registration
The GST registered proprietorship firm is allowed to supply goods or services all over India. This is necessary for borderless businesses or businesses across the state. It is for the firm that has a turnover of INR 40 lakh in case of Goods and INR 20 lakh in case of services.
- Other Tax Registration
Your proprietorship firm may register for TAN, IEC, and PT. The TAN lets you comply with TDS provisions; IEC is for import and export business compliance. In the case of services, you may have to pay a professional tax (PT). It requires PT enrollment and registration.
Simplify the complex process of sole proprietorship registration with the expertise of CAAQ Consultants. Trust us to handle your registration efficiently and effectively, as we have over a hundred successful cases for this category.