A sole proprietorship is a type of unregistered business entity that is owned, managed and controlled by one person. Proprietorships are very easy to start and have very minimal regulatory Compliance requirement. Therefore, proprietorship registration is suited only for unorganised, small businesses that will remain small and/or have a limited period of existence. All the registrations for a proprietorship would be in the name of the Proprietor, making the Proprietor personally liable for all the liabilities of the Proprietorship.
1. CONUSLTATION AND DISCUSSION
Proprietorships do not have a specific process for incorporation. For Sole Proprietorship registration there is no requirement of DIN and DSC.
2. SHOP & ESTABLISHMENT REGISTRATION
For Sole proprietorship we have to obtain Shop & Establishment registration certificate.
3. TAX REGISTRATION
The identity of a Proprietorship can be established through Tax Registrations like TAN and GST registration in the name of the proprietor. Hence, based on the type of business, the relevant tax registration is obtained for the business.
4. UDYOG AADHAAR
It is required to get other registrations with Government in order to establish a legal identity of proprietorship firm, Udyog Aadhaar registration along with a tax registration can be used for opening of bank account.
The Proprietor must be an Indian citizen and a Resident of India.
There is no limit on the minimum capital for starting a Proprietorship. Therefore, a Proprietorship can be started with any amount of minimum capital.
To open a bank account for a Proprietorship PAN Card, identity proof and address proof of the Proprietor is required. The two forms of registration can be any two of the following: service tax registration, MSME registration, VAT/TIN/CST registration, Shop & Establishment Act registration, Professional license, Chartered Accountant certificate or others as provided in the RBI Know Your Customer norms.
Sole proprietorships are not taxed treated separately he IRS. This means that any profit derived from your sole proprietorship is treated as your personal income and is accounted for on your individual tax return.
