Proprietorship Registration
A sole proprietorship is one of the oldest and easiest Business Structures to start in India. A proprietorship is a type of business that is owned, managed, and controlled by one person - who is the proprietor. As the proprietorship and proprietor are one and the same, it is straightforward to start and there are minimal compliance requirements.
As the proprietor and the businesses are one and the same, a proprietorship cannot have other partners or shareholders. Further, there is no limited liability protection for the proprietor from the business activities conducted in the sole proprietorship. Hence, this business entity is best suited for every small business with no more than 5 employees.
Sole Proprietorship Registrations & Licenses
To run a proprietorship business in India, the proprietor will have to obtain PAN and Aadhar. The proprietor must obtain GST registration, and UDYAM registration and open a bank current account. In some states, the proprietor will also have to obtain Shops & Establishment Act registration.
In addition to the basic requirements above, additional licences and permits may be required depending on the industry, state, and local regulations.
Registering a Proprietorship Online through India Filings
You can easily register a proprietorship online through IndiaFilings. To report a proprietorship, only the PAN & Aadhaar card of the business owner is required. We can help you obtain the following registrations in less than 15 days:
- GST Registration
- UDYAM Registration
- Zero-Balance Business Current Account with LEDGERS Accounting Software
Once, you have registered for the proprietorship registration on IndiaFilings, please follow the steps below and upload the following documents by logging into LEDGERS.
Step 1: Log in to LEDGERS using the email address for payment.
Step 2: Go to Services Tab & Select Proprietorship Engagement
Step 3: Upload your PAN & Aadhar Card Copy
Step 4: An IndiaFilings Registration Expert will file the registration application with GST Department, MSME Department and Bank for Current Account.
Step 5: Access to LEDGERS Accounting Software is provided for GST invoicing, GST filing and other services
Obtaining GST Registration for Proprietorship
IndiaFilings will obtain GST registration for a proprietorship as a part of the service. The following documents are required for GST registration:
- Permanent Account Number (PAN) of the Proprietor
- Digital Signature Certificate of the Authorized Signatory
- Consent by Proprietor for obtaining GST Registration
- Photograph of Proprietor and Authorized Signatory
- Bank Account Details: A scanned copy of a canceled cheque with the business entity's name, bank account number, MICR, IFSC, and branch information.
- Declaration / Authorization to Authorized Signatory
- For commercial purposes, the rent/lease agreement should be in the name of the proprietor.
- Additional documents such as Aadhaar Card, Driving Licence, Passport, or Voter ID in the name of the Owner with the complete address of the premises should also be provided if the address on the ownership document (Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill) is incomplete.
Created & Posted by Garima
Article Assistant at TAXAJ
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