'Company' signifies any enterprise formed under the Companies Act, 2013. The procedure of registration of a company in India relies upon the type of the company.
When a business or firm is held and governed by one individual, it is a sole proprietorship firm or company. In this Proprietorship firm form of business, a single individual takes care of and controls the total operation and functioning of the business. The company's proprietor is the only individual to enjoy the business's profit, and he has to bear the losses.
There is no specific law that directs the sole proprietorship firm. Proprietors of such corporations have unlimited business liability. This comprises that proprietor personal assets shall be attached to fulfil business liability claims. It is not possible to transfer the ownership of a Proprietorship firm from one individual to another.
Proprietorship Firm Registration is not essential for a proprietorship firm or business as they are recognized by alternate registrations such as GST registrations. Though its liability is unlimited, it also does not have a continuous presence.
A proprietorship registration is needed for the individual-owned business to do business; hence, it is recommended to get the registrations to run the business smoothly and legally. An individual could select any form of registration from the below:
• Shop and Establishment Registration under the laws of the individual states
• Registering as SME
• GST Registration
The documents required for a Proprietorship Firm registration are;
• Aadhar Card
• Registered office proof (for Rented Property: Rent agreement and NOC from a landlord/ For a Self-owned Property: Electricity bill or any other address proof.)
• PAN Card of the proprietor
• Bank Account
The steps to be followed for Proprietorship Firm Registration in Delhi include;
1. Applying for PAN. If an individual already has one, this step is not needed.
2. The next step is naming the business required before registration of the Proprietorship Firm in Delhi.
3. No formal registration is needed, but the next step is to open a bank account in the name of the commerce for Proprietorship Firm Registration in Delhi.
4. An individual may also register as a Small and Medium Enterprise (SME) as per the MSME Act, but it is not compulsory. However, it is beneficial towards being registered under the same.
5. An individual could also register for GST if the turnover exceeds Rs 20 lakh. For recording under GST, an individual has required the following documents, which include PAN card, Photo and Aadhar Card of the proprietor; Proof of business place (Electricity bill/ rent agreement) and Bank statement copy (first page for confirming bank account number, address and IFSC code).
6. An individual could also get a Shop and Establishment registration done.
Created
& Posted by (Ramesh Kumar Gupta)
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