PROPRIETORSHIP REGISTRATION ONLINE

PROPRIETORSHIP REGISTRATION

When a single person runs a business then such kind of business is called a proprietary business, and the owner of the business is called the proprietor. Proprietorship is the most widely recognized type of the business which is utilized in India. You can start and operate the business with least regulatory compliance. Be that as it may, there is no undeniable way available to register your proprietorship by the Indian Government. Tax registration and other business registration are the correct way to show the existence of your proprietary business. Following registrations can be utilized to show the existence of your proprietory Business

Professional Tax Registration.

GST Registration.

Shop and Establishment Registration.

The owner of a sole proprietorship business typically signs contracts in his or her very own name, because the sole proprietorship business has no separate character under the law. The sole proprietor owner will typically have clients compose checks in the owner’s name, regardless of whether the business utilizes an invented name. Sole proprietor owners can, and often do, blend personal and business property and assets, something that partnerships, LLCs and corporations cannot do. Sole proprietorship often have their bank accounts in the name of the owner. Sole proprietors need not watch formalities such as casting a ballot and gatherings associated with the more intricate business structures. Sole proprietorship can bring lawsuits (and can be sued) utilizing the name of the sole proprietor owner.

ADVANTAGES OF SOLE PROPRIETORSHIP REGISTRATION

Easy To Start and Close Business:

One a week’s time you can start your business saving your time and money.

Single Ownership:

Single ownership means less complications, also decision making is limited to one person.

No Restriction For Business Name:

There is no need to register or reserve the name for proprietorship purpose, you can directly start the business on any name of your choice.

Easy Closure:

Closure procedure is very simple with minimum formalities.

Easy To Start and Close Business:

One a week’s time you can start your business saving your time and money.

Single Ownership:

Single ownership means less complications, also decision making is limited to one person.

No Restriction For Business Name:

There is no need to register or reserve the name for proprietorship purpose, you can directly start the business on any name of your choice.

Easy Closure:

Closure procedure is very simple with minimum formalities.

Disadvantages of Proprietorship

Starting a Proprietorship is very easy. Be that as it may, However, after the startup phase, a Proprietorship doesn’t offer the Proprietor a large group of advantages such as separate legal substance, limited liability proprietorship, corporate status, transferability, perpetual existence – which are desirable features for any business.

Separate Legal Entity::

A Sole Proprietorship doesn’t have a separate legal substance. Henceforth, opening a bank current account in the name of a business can be an increasingly protracted procedure for a proprietorship when compared to a Company or LLP.

Limited Liability Protection:

A Sole Proprietorship does not provide the Proprietor with limited liability protection. Hence, in case any loss or liability is created by the Proprietorship business, the Proprietor would be held personally liable for payment.

Transferability:

A Proprietorship business is linked to the PAN of the Proprietor. Hence, any license or registration obtained in the name of the Proprietorship cannot be transferred to any other person.

Perpetual Existence: 

A Sole Proprietorship business and the Proprietor are one and the same. Hence, the existence of the Sole Proprietorship is tied to the Proprietor. In case the Sole Proprietor is no more – the existence of the Sole Proprietorship business would also end.

Fundraising:

A Proprietorship business cannot raise equity funds from Angel Investors, Venture Capital firms and Private Equity funds. Banks also have restrictions on the amount of money they can lend to a Sole Proprietorship business.

Common Registrations for Proprietorship

As the identity of a Sole Proprietorship is established through various other registrations and licenses, the following are some of the common registrations that are obtained for a Proprietorship.

MSME Registration:

MSME or Udyog Aadhaar registration can be obtained in the name of the business to establish that the Sole Proprietorship is registered under the Ministry of Micro, Small and Medium Enterprises.

TAN Registration:

TAN Registration must be obtained for the Proprietor from the Income Tax department if the Proprietor is making salary payments wherein TDS deduction is required.

GST Registration:

GST registration must be obtained if the Proprietor is selling goods or services that cross the GST turnover threshold limit for registration. In most states, GST registration is required for service providers having annual revenue of more than Rs.20 lakhs and in case of traders – annual revenue of more than Rs.40 lakhs.

Import Export Code: 

Import Export Code or IE Code can be obtained from the DGFT in the name of the business – in case of a Proprietorship business undertaking export and/or import of goods into India.

FSSAI Registration:

In case the Proprietorship is involved in the selling of food products or handling of food products, FSSAI registration must be obtained from the Food Safety and Standard Authority of India in the name of the Proprietor.

FAQ