Sole Proprietorship firm is the simplest form of business entity in India which is owned and managed by a single person. It is the easiest way of registering and starting a business.
Sole proprietorship is a type of business entity which is owned and managed by a single person only. It is not governed by any law and hence it is the easiest form of business in India. All the decisions and management of the business is in the hands of one person.
1.Minimal Compliances: A proprietorship firm has very minimal compliance requirements which makes it much more preferable option than One Person Company.
2.Easy to Start: Sole Proprietorship is not governed by any law and does not require any mandatory registration. Hence, it is the easiest way of starting a business entity.
3.Lower cost: As there are minimal compliances, there is no need to hire an auditor for meeting the legal compliance requirements.
4.Complete control: As a proprietorship firm is owned by a single person, he has the complete control over the business decisions and there are no interventions of any kind.
Depending upon the requirement of the business and GST Law, application for GST registration has to be made with the department. GST registration usually takes around 5-10 working days.
To establish the existence of your proprietorship firm and avail various benefits, you’ll have to file an application for registering your firm as Small and Medium Enterprise (SME) under the MSME Act. It is beneficial for the business at the time of taking out a loan. The government runs various schemes for SMEs to provide loans at low-interest rates.
You are required to obtain a shop and establishment license according to the local laws. It is issued by the municipal corporation on the basis of the number of employees or workers in the firm.
Once all the steps are completed, the current bank account should be opened by the proprietorship firm. You can contact us for assistance with your current bank account opening.
The process of registering your business as a sole proprietorship firm is not much complicated. Our experts at Legal Papers India can make the whole registration process hassle-free for you. Register your firm online in 3 easy steps:
Post incorporation of your sole proprietorship firm, you’ll receive the following documents:
GST Registration Certificate
Shop and Establishment Act License
MSME Certificate
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