• The scanned copy of the aadhar card of the proposed proprietor of the sole proprietorship accounting. Aadhar card is necessary to register any business structure in India.
• In addition to the Aadhar card, the PAN card of the proposed proprietor is also a mandatory document for a proprietorship business registration in India.
• With a PAN card and Aadhar card, the proprietor of the business entity is liable to open a bank account in the name of his sole proprietorship firm.
• Along with the above-mentioned documents, the individual would require identity proof and address proof for the registration process.
• Documents needed for GST registration are also required to open a current bank account in the name of the company.
• A proprietor of the sole tradership firm can run his business activities at any rented place or owner place. The individual has to submit some of the proof of his registered office, documents such as:
  • If the registered office is owned property, any utility bill is required such as electricity bill, water bill, gas bill, etc. with the No Objection Certificate. The bill submitted should not be older than two months
  • If the registered office is rented property, then a lease/ rent agreement of the rented property along with the NOC from the owner is required.

Each and every business structure has its own advantages. Likewise, some of the advantages of a Sole Proprietorship Business mention below:

• Individual’s Investment:

  To form a sole trader company, an individual who wishes to start this type of entity has to invest his personal assets or should get money from other financial resources such as bank loan, borrowing money or lending loan.

• No Sharing Of Profit Or Loss:

  All the income gained or the loss or debt obtained by the Sole Proprietorship Business belongs to the owner of the entity, and he/she is not allowed to share it with someone else.

• Ownership:

  An individual person holds the complete power of the entire business and that person is the owner of the firm. Later, that individual can transfer the ownership of the business through a will or as his last testament.

• Fewer Formalities:

  With the ease of beginning, a sole proprietorship company firm comes with a few rules, formalities and regulations before and after the registration process.

• Unlimited Liabilities:

  This feature of this business structure sometimes acts as a flaw. Since the business and the owner of the business have no separate identity, even the personal property of the owner can be used to repay all the debts and loans that happened because of this business.

• Control Power

  The control power of the entire business is in the hands of a single person or the owner, and he/she don’t have to answer anyone else. The individual who is the owner of this business should be capable of using his intelligence, expertise, skills and hard-working to run all the business activities.

A proposed person can choose any of the below mentioned options for the sole proprietorship registration online in India process:

• SME Registration process
• GST registration process
• Registration as per the Shop and Establishment Act under the rules and regulations of that particular state

SME Registration Process for Sole Proprietorship Firm

As per the provisions of the MSME Act, any person requires registering as an SME (small and medium enterprise) to start a business. To complete setting up a sole proprietorship, the individual has to submit an online application. However, this is compulsory but is good for the company, as it can be used during the need of loan requirement at a low-interest rate. The government has also introduced many schemes for the improvisation of SMEs registered as per the MSME act.

Shop And Establishment Registration

To register in the Shop and Establishment registration process, the person must own a shop and it is issued by the municipal parties depending on the number of workers or employees in the firm.

GST Registration

Getting a GST registration is mandatory to run any type of business activities in India. GST number is necessary even if the individual is doing online business. GST registration takes about 5 working days and it requires the following documents:

• PAN Card and Aadhar Card of the proprietor
• Passport size photographs of the proprietor
• Office proof
• Bank Statement copy with the bank account number, branch address and IFSC code

Post Compliances

• Should file annual Income Tax returns within the due date.
• Should file GST if the business is registered under GST registration
• If the sole trader firm is liable for TAX audits, then the proprietor should deduct TDS (tax deducted at source) from workers income and should file TDS returns