Documents Required for Sole Proprietorship Registration

 


Registration of the firm is the overriding and most important step for any business organization. Company registration is very essential for protecting your business and securing its rights. It shields the business from personal liability and protects from other risks and losses and at the same time provides more customer attraction, more capital contribution, greater stability and increases the company's potential to expand. Before registering your company, you should have clarity on the kind of business you are into, your goals and objectives since each of these types come with their own legal implications.
There are various forms of businesses available that one can register with. Among all, sole proprietorship registration is the most simple one with minimal compliance procedures. Any individual who wants to start a business from home or on a premise with a minimum amount can opt for the Sole proprietorship business type. It can be started within the time span of 10-15 days.

In this article we’ll talk about the various documents which are required while going for offline or online sole proprietorship registration.

Sole Proprietorship registration is a cakewalk. But before going for offline or online sole proprietorship registration, you need to take care of some basic things. Firstly, you have to decide on a suitable business name and choose a suitable location as the designated place for doing your business. 

Let’s now understand how an individual can register for a sole proprietorship in India. Even though a sole proprietorship business does not need any specific registration, the owner is advised to get a few registrations done in order to establish the existence of the firm: 

Registration under Shop and Establishment Act 

It will provide you with the license or the right of doing business in your locality/state. It can be done by submitting an application to the city’s local Municipal Corporation.

Udyog Aadhaar under Ministry of MSME

A proprietor can apply for Udyog Aadhaar in order to get a UIN provided by the MSME. The firm can register itself to avail of the benefits of the various schemes introduced by the Ministry of MSME by getting the Udyog Aadhar.

GST registration

It is also seen as another way of getting your sole proprietorship registered but it is not mandatory for sole proprietorship registration. Getting registration under GST will also help the owner to keep an eye on his taxation through all the transactions made in the name of the firm.

 

Documents Required for Sole Proprietorship Registration

The entire process for Sole Proprietorship registration can be completed online. The following documents are required to be uploaded by the person:

➢ Identity Proof - Aadhar & PAN Card 

Aadhar card is now a necessity for applying for any type of registration in India. Also, the income tax return can only be filed if the person has linked his PAN card with the Aadhar number. Likewise, PAN is equally essential. You can’t file your income tax return until you get a PAN. So if you don’t have a PAN number, apply for it at the earliest.

Open the Bank Account in the name of Business

After this, Generating a current account is considered to be the groundwork for starting this business. A current account ensures safe payments in the proprietorship’s name. Once you have secured the PAN and Aadhar Number, you can approach any designated bank opening a current account. Common documents required for serving this purpose include PAN, Aadhar Number, GST registration, and address and identification proof.

➢ Address Proof

A proof must be provided to ensure the registered office address of the Pvt. Ltd company. Any utility service like telephone, gas, electricity, etc. depicting the address of the premises in the name of the owner or document, which must not be older than two months at the least can act as Proof of evidence

If the registered office is rented, the rent agreement and a NOC from the landlord has to be submitted. This acts as an authorization from the Landlord to use the premises by the company as its registered office.

➢ Passport size photos

While there is no strict specification regarding the size and resolution of the image, it is preferred that the photograph have a white background.

Cessation

A Sole Proprietorship business does not take more than 15 days to set up and start functioning. This simplicity makes it popular among small traders and merchants. It's also much cheaper, of course. This is the other reason why it's the most widely used business structure. However, it also has disadvantages like Lack of Resources, Unlimited Liability, Lack of Credibility, issues in raising funds easily and inability to add Partners.



Originally published at https://superca179969711.wordpress.com on 22 Dec 2021.


SuperCa

Online GST Registration | Online GST Return Filing | Online Company Registration | Online Sole Proprietorship Registration


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