Overview on Sole Proprietorship Registration?
In India, majority of the businesses are unregistered, which are operated as sole proprietorship firms. A sole proprietorship is the simplest and easiest form of business entity to register and maintain in India. There is no formal regulation for sole proprietorship registration. However, to start certain proprietorship firms, there is a requirement of obtaining business licenses, capital and PAN number of the Proprietor.
Sole proprietorship in India is an extension of the proprietor business and needs no formal procedure for registration. However, now sole proprietorship registration in India can be done only by opening a bank account in the name of the proprietorship firm or obtaining licenses required for conducting the business.
Documents for Sole Proprietorship Registration
For registering in sole Proprietorship, the following documents are required:
- Aadhar Card
- PAN card
- Bank Account
- Registered Address Proof
These firms do not require specific registration. But in order to run the business smoothly, they have an option to get registered under the following:
- GST registration
- Registered as MSME
- Register under Shop and Establishment Act
Other Documents required for the sole proprietorship entity are as follows:
- License/ Certificate issued by Municipal Authorities
- CST/VAT certificate
- Income tax returns documents
- Certificate issued by Service Tax/ Sales Tax /Professional Tax authorities
- Certificate issued by Food and Drug Control Authorities, Indian Medical Council
- IEC (Importer Exporter Code) issued to the proprietor owner by the office of DGFT
- Utility bills such as water bill, electricity bill and landline telephone bills in the name of the proprietor owner