Register Proprietorship Registration with INR 1499/- only and provide maximum privacy to own business.
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What is Proprietorship Registration ?
Sole Proprietorship is a firm, which is owned by a single person. Sole Proprietorship can be incorporated in 15 days and hence makes it one of the most popular types of business to begin in the unsystematic sector, specifically among merchants and small traders. The government of India has not prescribed any sole proprietorship firm rules and regulations in India or there is no registration mechanism for Sole Proprietorship Firm registration Thus, the registration of a proprietorship can only be recognized through tax registrations that the business is required to have as per the rules and regulations. These tax registrations may include GST Registration and/or SSI/MSME Registration that should be obtained in the name of the Proprietor to establish that the Proprietor is operating a business as a sole proprietorship.
Benefits of a Sole Proprietorship:
• Minimum Compliance
• Simple to begin
Checklist Items for a Sole Proprietorship Registration
• A certificate/license issued by Municipal authorities under the Shop & Establishment Act.
• The license issued by Registering authorities like the Certificate of Practice is issued by the Institute of Chartered Accountants of India.
• The registration/licensing document is issued in the name of the proprietary concern by the Central Government or the State Government Authority/ Department, etc,
• The banks may also accept the IEC (Importer Exporter Code) issued to the proprietary concern by the office of the DGFT as an identity document for opening of the bank account etc,
• Complete Income Tax return (not just the acknowledgment) in the name of the sole proprietor where the firm’s income is reflected, duly authenticated and acknowledged by the Income Tax Authorities,
• The utility bills such as electricity, water, and the landline telephone bills in the name of the proprietary concern,
• Issue of GST Registration/Certificate.
Senixa Legal helps you to handle all the paperwork and ensure a seamless interactive process with the government. We provide clarity on the incorporation process to set realistic expectations. We provide the access to reliable professionals. To know the progress of work you can write us a mail at email@example.com or call us on +91-9999347181.
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Compliance required by Proprietorship firm
GST registration is one of the ways to get a proprietorship registration done. You can get yourself registered under GST if your annual turnover is more than Rs. 40 lakhs. Also, if you are doing online business (selling through Amazon, Flipkart, etc.), you are required to get a GST number under the goods and service tax Act.
The proprietorship firms registered under GST are required to file the GST return on a monthly, quarterly, and annual basis. GST return is a document that contains the details of the income of the taxpayer. As the filing of GST returns is mandatory for all the registered Taxpayers including Partnership firms.
You can get yourself registered as a Small and Medium Enterprise (SME) under the MSME Act. The application can be filed electronically. Although it isn’t compulsory to register as an SME, it is highly beneficial, especially at the time of taking a loan for the business. Also getting Udyog Aadhar Registration will be very beneficial.
The accounting for a sole proprietorship does not require a separate set of accounting records since the owner is considered to be inseparable from the business. Nonetheless, it is always advisable to maintain records for business activities of a Proprietorship firm, to judge whether these operations are generating a profit.
Income tax filing must be filed by all proprietorship having a taxable income over the exemption threshold. In some cases, a tax audit would also be required. Since proprietorship is considered to be the same as the proprietor, the income tax return filing procedure for a proprietorship is similar to individual income tax return filing.
There is no obligation for a sole proprietor under any law to get the accounts except in the case where the turnover of a proprietary business in any financial year exceeds 1 Crores Rupees and gross receipt from profession exceeds 50 Lakhs Rupees. In both cases, the audit of accounts is compulsory for a proprietor under the Income Tax Act, 1961.
Documents Required for Proprietorship Registration
- Address and identity proof
- PAN card, KYC documents and
- Rental agreement or sale deed (in case of Shops & Establishment Act Registration).
Advantages of a Private Limited Company
Quick decision making
Control over all business decisions remains in the hands of the owner. This ensures quicker business decision making and hence, faster execution. Owners have complete and direct control over all decision making.
The registration process for starting a sole proprietorship firm is very simple compared to other business structures. One can get the Registration Certificate within 1 working day. Obtaining a GST registration is also very quick and easy.
Easy to close
The disintegration or sale of the Proprietorship firm is very simple. As there is no legal distinction between the proprietor and the proprietorship firm, not many regulatory formalities are required for the closing of a proprietorship.
The owner of a sole proprietorship is not required to file a separate business tax report. The business will be taxed at the rates applied to personal income, and not corporate tax rates. This means huge tax savings.
The owner of the Proprietorship firm is self-employed by himself and this creates various employment opportunities. Also because the owner is in the hands of a single person, there are fewer chances of leakage of business secrets.
A Sole Proprietorship is cheap and affordable as compared to all other forms of organizations. Also on account of the minimum compliance requirements, it is inexpensive even in long run. There are minimal compliance filings and many concessions in various laws.
Steps to register Sole Proprietorship?
Complete the checklist and submit the documents
Verification of documents
Get Registration Certificate
Get PAN & TAN
Fill Simple Checklist
A compliance manager will get in touch with you to collect your documents along with a simple checklist. You need to fill up that checklist and submit along with your documents for verification. Our team of experts will verify the documents provided by you and take the procedure further. The compliance manager dedicated to you will keep you updated on the progress of Company Registration throughout the process.
Once your documents along with Checklist are submitted, we shall proceed with the application of your Digital Signature and subsequently the approval of your name for your Private Limited Company. You may suggest up to three names of your choice. Names should be unique and suggestive of the Company’s business. We will proceed with application for name for your Private Limited Company in Part A of SPICe Plus form.
We will draft the MOA (Memorandum of association) and AOA (Articles of association). We will file the incorporation documents with MCA through in part B of a form called “SPICe Plus (SPICe +)” along with the subscription statement. Usually, MCA approves the forms within 4-5 days once filed and issues Incorporation Certificate with CIN. PAN & TAN are allotted alongside. You may then proceed to open your Company Bank Account.