Documents Required For A Sole Proprietorship
Sole Proprietorship is the easiest form of business done in India since it isn’t governed by any specific laws. Under sole proprietorships, compliance’s minimal and easy to fulfill. A sole Proprietorship means a business carried on by one person. The decision-making and management of the business are in the hands of a single person.
Colored Photo of the Proprietor
Firm Name
Firm/Company Address
Personal Proprietor Pan Card Soft Copy
Soft copy of the Aadhaar card
Email-id and Mobile Number
Top 5 Products name / Services in which the company is dealing.
Saving bank account statement or canceled cheque of the proprietor
The copy of the electricity bill, Rent Agreement
Aadhar Card
An aadhar number is now a necessity for applying for any registration in India. Also, the income tax return can only be filed if the person has linked his PAN card with the Aadhar number. Contact the nearest E-Mitra or Aadhar Seva Kendra if you haven’t got an Aadhar number yet. After applying for an Aadhar card, a hard copy of the same is received at the registered address in around 15-20 days.
PAN Card
You can’t file your income tax return until you get a PAN. So if you don’t have a PAN number, apply for it at the earliest. PAN card can be applied online and it costs Rs. 110, approximately. For applying, you need a scanned photograph, identity proof, and address proof.
The form can be submitted online by verifying it through Aadhar e-KYC. Once the PAN card application is submitted, it is checked at NSDL for verification, and if NSDL finds the information correct, it allows the PAN number within 7-8 days. Further, a hard copy of the PAN card is received at the registered address within 15-20 days.
Bank Account
After you have got your Aadhar Number and PAN, you can visit any bank for opening an account with them. Apart from Aadhar Number and PAN, you need to carry identity proof and address proof. For opening a current account, you need to submit a GST registration document to the bank officials too.
Registered Office Proof
If it is a Rented Property: Rent agreement and NOC from a landlord.
If it is a Self-owned Property: Electricity bill or any utility bill or sale deed.
Registrations Required For A Sole Proprietorship
In addition to the above documents, there are few registrations required in order to establish the existence of the firm:
Registering as SME
You can get yourself registered as a Small and Medium Enterprise (SME) under the MSME Act. The application can be filed electronically. Although it isn’t compulsory to register as an SME, it is highly beneficial, especially at the time of taking a loan for the business. The Government runs various schemes for SMEs where loans are provided at the concessional rate of interest.
Shop and Establishment Act License
The Shops and Establishment Act License is required to be obtained according to the local laws. It is issued on the basis of the business and the number of employees. Generally, all sole proprietors who own a shop or establish a commercial establishment must obtain this license.
GST Registration
You can get yourself registered under GST if your annual turnover is more than Rs. 40 lakhs. Also, if you are doing online business (selling through amazon, Flipkart etc.), you are required to get a GST number. For registering under GST, you need the following documents –
PAN card, photo and Aadhar Card of the proprietor
Proof of business place (electricity bill/ rent agreement)
Bank statement copy (first page for verifying bank account number, address and IFSC code)
GST registration is easy and can be done via the GST portal. Normally GST number is received within 3-4 days of submitting the application.
Created & Posted by Garima
Article Assistant at TAXAJ
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