Proprietorship Firm Registration
A sole proprietorship is also known as the sole trader or an individual entrepreneurship or proprietorship, is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.
A proprietorship firm is the favorite business form for the small entrepreneurs. It simply allows starting a firm with small capital, short time frame.
It requires a very simple process with minimal legal compliances and formation costs. Most of the local offline businesses prefer proprietorship. Here in this article we will understand how to register a proprietorship firm in India.
Procedure to register a Proprietorship firm in India
- Fill up a simple form on Online Sole proprietorship registration website providing basic information about proprietor and business.
- Provide relevant documents online and we will file them with relevant authorities.
- We will get your proprietorship registered.
Documents required for proprietorship registration
Below mentioned are the required documents for Proprietorship firm registration in India.
- A copy of the PAN card of the proprietor
The business and the Proprietorship firm are seen as the same. Thus, the proprietor can use their PAN card for opening bank accounts, obtaining licenses/ registrations/ certificates in the name of the sole proprietorship and filing an income tax return for the sole proprietorship.
- A copy of Aadhaar card/election I-card:- Id proof of the proprietor is mandatory.
- Address of office
- Rented Property: a) Rent agreement and NOC from a landlord.
- Self-owned Property: Electricity bill or any other address proof.
- Nature of business
- Service-based business:- Business providing services to consumers online or offline. Such businesses need the following two documents to open a current account:-
- Service tax certification.
- Chartered Accountant Certification regarding the nature of business. (Required by some private banks)
- Product manufacturing/ Sales business:- Businesses selling products to consumers online or offline. Businesses selling VAT applicable products fall in this category. They need the following documents:
- Shop and Establishment License.
- VAT/ Sales Tax/ TIN registration.
- Bank Proof
- Canceled cheque.
- Bank statement, not more than three months old.
Proprietorship registration can be done easily by visiting Online Sole proprietorship registration website. Along with that, you can manage your accounts and banking related in queries with the help of EZOTO Software – By Downloading this invoice generator you would be able to manage invoice, accounting, credit, inventory, customers, etc and fulfill all your accounting needs.