Sole Proprietorship is the easiest form of business done in India since it is not governed by any specific laws. Under sole Proprietorship’s, the compliance’s are minimum and easy to fulfill. Sole Proprietorship means a business carried on by one person. The decision timber and operation of the business is in the hands of a single person.
Documents Required For A Sole Proprietorship
Aadhaar number is now a necessity for applying for any Registration in India. Also, the income duty return can only be filed if the person has linked his Pan card with the Aadhaar number. Contact nearest E-Mitra or Aadhaar Seva Kendra if you haven’t got an Aadhaar number yet. After applying for an Aadhaar card, a hard dupe of the same is entered at the listed address in around 15-20 days.
You can’t file your income duty return until you get a Pan. So if you don’t have a Pan number, apply for it at the foremost. Pan card can be applied online and it costs Rs. 110, roughly. For applying, you need a scrutinized snap, identity evidence, and address evidence.
The form can be submitted online by vindicating it through Aadhaar e-KYC. Once the Pan card operation is submitted, it’s checked at NSDL for verification, and if NSDL finds the information correct, it allows the Pan number within 7-8 days. Further, a hard dupe of the Pan card is entered at the listed address within 15-20 days.
After you have got your Aadhaar Number and Pan, you can visit any bank for opening an account with them. Piecemeal from Aadhaar Number and PAN, you need to carry identity evidence and address evidence. For opening a current account, you need to submit a GST Registration document to the bank officers too.
Registered Office Proof
- If it’s a Rented Property Rent agreement and NOC from a landlord.
- If it’s a Tone-possessed Property Electricity bill or any mileage bill or trade deed.
Registration Needed For A Sole Proprietorship
In addition to the below documents, there are many Registration needed in order to establish the actuality of the Registration
Registering as SME
You can get yourself registered as a Small and Medium Enterprise (SME) under the MSME Act. The operation can be filed electronically. Although it is n’t mandatory to register as an SME, it’s largely salutary, especially at the time of taking a loan for the business. The Government runs colorful schemes for SMEs where loans are handed at the concessional rate of interest.
Shop and Registration Act License
The Shops and Registration Act License is needed to be attained according to the original laws. It’s issued on the base of the business and the number of workers. Generally, all sole possessors who enjoy a shop or establish a marketable Registration must gain this license.
You can get yourself registered under GST if your periodic development is further than Rs. 40 lakhs. Also, if you’re doing online business ( dealing through amazon, Flipkart etc.), you’re needed to get a GST number. For registering under GST, you need the following documents –
.• Pan card, print and Aadhaar Card of the owner
. • Evidence of business place (electricity bill/ rent agreement)
- Bank statement dupe ( first runner for vindicating bank account number, address and IFSC law)
Constantly Asked Questions
In whose name should the sole Proprietorship Registration Pan card be attained?
The Pan card for the Proprietorship Registration will be in the name of the owner. The company Pan card isn’t issued to the sole Proprietorship Registration as it doesn’t have a separate legal actuality like a company. A sole Proprietorship business is linked with the owner/ business proprietor. Therefore, the proprietor/ owner can use his/ her particular Pan for the sole Proprietorship business.
Should the bank account be in the name of the sole Proprietorship Registration?
Yes, a bank account must be opened by the sole owner in the name of his/ her sole Proprietorship business. A sole owner must open a current account and carry out all the Proprietorship business deals in the account of the sole Proprietorship Registration.
What are the documents needed to open a bank account?
For opening a current account of the sole Proprietorship, you must submit evidence of sole Proprietorship business and registered office address evidence. A GST Registration, MSME Registration or a Shops and Registration Act License acts as evidence of the actuality of the sole Proprietorship Registration.
Still, you can submit any license/ instrument issued for your sole Proprietorship similar as labour license, mandi license, If you don’t have this Registration.
What’s the listed office evidence for an e-commerce/ online business?
You can rent a place as an office for your e-commerce/ online business. The rental agreement and NOC from the proprietor for operating your sole Proprietorship business will be your listed office address evidence. In case you operate your online/e-commerce business from home, your house address evidence or the marketable electricity bill of your house will be the listed office address evidence.
I’ve started a sole Proprietorship business from my house? What’s the listed office evidence?
The listed office evidence in such a case will be your house address. In case your house is rented, you’ll need to submit the rental agreement and NOC from the proprietor for operating your business from home as an office address evidence. In case you start your sole Proprietorship business from your own house, you can submit the marketable electricity or gas bill or delivery/ dispatch bills of goods or services issued to your guests containing your home address as evidence of office address.
Which are the obligatory licenses to be attained for a sole Proprietorship?
Generally, it doesn’t bear any Registration as similar. The introductory Registration needed by a sole Proprietorship are-
- Registration Certificate under the Shops and Registration Act of the state in which the business is located.
- GST Registration.
- MSME Registration.
Is a GST license obligatory for a sole Proprietorship?
If the deals or development of your business crosses the threshold limit of Rs. 40 lakh in a time, also it’s mandatory to get a GST Registration done. Still, businesses registered in special order countries must gain GST Registration if their threshold limit crosses Rs. 20 lakh. Any-commerce dealer on an e-commerce aggregator portal like Flipkart or Amazon needs to have a GST Registration irrespective of their development. Any existent or reality allowing about establishing their own-commerce business needs to have a GST Registration.