How to Register Sole Proprietorship Firm in India

Sole Proprietorship Registration is best business arrangement for doing the business in India. It’s an extremely straightforward system with less compliance and costing and fees. It’s an extremely famous business development and a large portion of the disconnected neighborhood based business pick this type of business arrangement.

Sole Proprietorship needs Minimum one Person for the Registration. The individual is called sole proprietor. A sole proprietor is the proprietor of the business. He can be contracted likewise by somebody for maintaining their business as an employee.

Sole Proprietorship Firm comprises of a great deal of things so as per the rules of The Government of India there is no registration for sole proprietorship firm so Sole Proprietor can be enlisted in anyone’s tax legislations.

The main objective in these firms is opening a current bank account but for opening of such a bank account, one needs a lawful confirmation to show as a business legal entity.In the case of firm it is known as tax registration or shop and establishment license or any other kind of local license.

Therefore we divide business into two categories, as tax registrations depend either on the service based or on product based business.

Firstly, we divide business into two categories:

• Service Based Business:-

The service based Business classification includes the effective e-Commerce Marketplace, Service Based Online Consultancy, Cab Service, Classifieds Website, Website Development Service, App Development Service and numerous different services based business. Service Based Business require the following two Registration processes on account of sole Proprietorship Firm. They being:-

1. a) Service Tax Registration –

Service Tax Registration is required by the sole proprietorship when they crossed the turnover of 9 lakh rupees in a year however, on account of sole proprietorship firm, there is a requirement for service tax registration certificate by banks Initially in light of the fact that you need to give one proof as a business lawful element that is service tax registration certificate.

1. b) Chartered Accountant Certification –

Chartered Accountant Certification is additionally required by the business on account of sole proprietorship firm. Chartered Accountant Certification affirms the way of the matter of the sole proprietorship firm.

• Product based Business:-

Product based Business requires two kinds of registration processes –

1. a) VAT/CST Registration:-

VAT Registration in required by the all different business entities like companies or LLP at whatever point their turnover is crossed 5 lakhs Rupees. This is not a settled breaking point since VAT/CST relies upon the rules made by the State Government because it is more or less a state made tax. So in each state guidelines and regulations is distinctive for the breaking points and rates. VAT Certificate is exceptionally useful to open a present financial balance when you are dealing in VAT qualified Products.

1. b) Chartered Accountant Certification –

Chartered Accountant Certification is likewise required by the Product based business on account of sole proprietorship firm. Chartered Accountant Certification guarantees the nature of the business of the sole proprietorship firm.

Archives Required on account of sole Proprietorship Firm as Service Based Business

• Container Card of the sole Proprietor.
• ID Proof and Address Proof of the sole Proprietor as Adhar Card, Driving License or identification and so forth.
• Lease Agreement, No Objection Certification or Electricity bills of the property where business is to be enlisted.
• On the off chance that Proprietor has possessed property then it needs deals deed duplicate or power bills.
• Bank Statement duplicates or scratched off check duplicate.
• A few archives like undertaking and other which is set up by the legitimate counsel.

Records Required on account of sole Proprietorship Firm as Product Based Business:-

• Dish Card of the sole Proprietor.
• ID Proof and Address Proof of the sole Proprietor as Adhar Card, Driving License or international ID and so on.
• Lease Agreement, No Objection Certification or Electricity bills of the property where business is to be enlisted.
• In the event that Sole Proprietor has possessed property then it needs deals deed duplicates or power bills.
• Bank Statement duplicates or wiped out check duplicate.
• Security Amount or Guarantors are also required in some state for the VAT/CST Registration. In some state like Delhi, there is no security at this moment.

Strategy to register sole Proprietorship Firm –

Archives required for sole Proprietorship Registration.

• Apply for the Service Tax or VAT
• Get Service duty or VAT Registration Certificate.
• Apply for a present ledger in any, manages an account with your total documentation.

The registration of as sole proprietorship firm can be done online also and it is considered to be the most effective way of doing the registration. There are many websites available to register a sole proprietorship firm. MyOnlineCA can be the option for the registration as we are moving towards a digital India. It is a Startup Friendly Online lawful administration in India and adored by new businesses. It’s made legitimate readily available with energetic lawful specialists. It has a bigger system of connecting Chartered Accountants, Company Secretary and Lawyers in India.

The online procedure is:-

• Put a Request on MyOnlineCA
• MyOnlineCA startup benevolent group will interface by means of call/mail/talk.
• Help to comprehension about legitimate things for your startup.
• Get the sensible evaluating and 70% less expensive as contrast with customary disconnected legitimate administrations.
• Send them your records by means of mail as examined duplicates or pictures dispatch or through their pickup benefit.
• Pay in Installments and get the last affirmation.

Thus, these are the simple ways to register a sole proprietorship firm in India.

Author: This blog is written by  Ms. Harshita Tomar, student of Hidayatullah National Law University (HNLU), Raipur, a passionate blogger & intern at  Aapka Consultant.

How Aapka Consultant can help you:-

• Get free expert consultancy from experts.
• We available every time to solving your legal queries.
• Get one stop solution for all legal compliances.
• Process application within 24 Hours.
• Trusted by Most Valuable Startups.
• We Understand Startup Budget & their needs.
• Get quality services at pocket price.

Visit: Aapka Consultant to get Online Services of CA CS & Lawyers.