Sole Proprietorship Registration
Service Overview
In a Sole Proprietorship, there is no separate legal entity. As a single owner, you bear full responsibility and liability for managing the business. This form of business structure comes with its list of advantages and disadvantages. Small businesses mainly prefer Sole Proprietorship due to its simple and accessible registration process.
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Details
Sole Proprietorships often operate under your legal name, and there may be no formal registration requirement to start and run a business as a sole proprietor. However, these are a few general steps to successfully start this type of business structure.
- Apply for a PAN & TAN of the business.
- Choose a business name and the nature of the business.
- Open a bank account to manage all the business-related transactions.
- You don’t require legal registration to start a Sole Proprietorship firm, but specific essential registrations or licenses must be obtained for conducting the business.
Here are the basic registrations needed for a Sole Proprietorship:
a. Registration Certificate under the Shop and Establishment Act of the state where the business is located.
b. GST Registration if the business turnover exceeds Rs. 40 Lakhs (for goods) and Rs. 20 Lakhs (for services).
c. Micro, Small, and Medium Enterprise (MSME) Registration under the MSME Act, though it is not mandatory.