Sole Proprietorship Registration in Pune
Are you an individual willing to start your own business? Great! Then Sole Proprietorship is suitable for you. We will refer you same according to your business setup.
A Sole Proprietorship is a business owned and run by one person (an individual) called as sole proprietor. Sole Proprietorship is managed and operated by an individual.
Most of businessmen often start their business opting sole proprietorship, however it is unregistered form of business.
In India Sole Proprietorship is very commonly selected by the businessmen. Sole Proprietorship is form of business viz. easy to manage with less tax compliance. This form of business has proven to be most accommodating and profitable for micro and small businesses.
Person owing the business is known as proprietor, there is no distinction between the business and owner or proprietor, because the owner is whole and sole of the company, whose liabilities are unlimited towards the company. In case of arrival of any issues proprietor is personally liable for those as proprietor and proprietorship are considered equal. The documents like PAN, Aadhar-card or other of proprietor are used as basic documents for business registrations and licenses.
Sole Proprietorship has advantages as well as disadvantages:
- Sole Proprietorship is quite easy to setup, the proprietor has to do registrations and obtain license as per the nature of his business.
- This form of business registration involves less tax compliance and less rules and regulations to be followed. Also the annual return of proprietor and company can be same.
3. The process of liquidation or say dissolution is also easy in sole proprietorship. Business can be transferred only at proprietor’s will.
- As the owner and business are same the liability of proprietor is also on stake at times.
2. Raising funds from various financial resources is also not easy as the company is not separate legal entity and is connected to the profile of proprietor. So raising funds on large scale is difficult.
3. This form of business is suitable for micro or small businesses.
What You Get
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Steps for Sole Proprietorship Registration
Submit Scanned copy of Documents
Select Name for Proprietorship firm
Apply for Licence
Get Shop Licence
Get Establishment License
Although sole proprietor does not require any specific registrations, a few registrations are advised to make the business function smoothly.
Registering as SME (Small and Medium Enterprise):
You can register as Small and Medium Enterprise (SME) under the MSME (Micro, Small and Medium Enterprises) Act by filing an electronic application. Registering as SME is highly beneficial, especially at the time of taking loan for business.
Shop and Establishment Act License:
According to the local laws, it is required to obtain this license. It is issued by the municipal party based on the number of employees.
Food and Drug License:( Note -If u are deal with in Food Items then only apply)
Food Safety and Standards Authority of India (FSSAI) FSSAI is an autonomous body established under the Ministry of Health and Family Welfare, Government of India, that monitors and the food business in India
It can be done via the GST portal and the GST number is received within 3-4 days of submitting the application.
As Sole Proprietorship form of business don’t have separate legal entity, to obtain trade mark is suggested for the sole proprietors. Trademark is a special unique sign like designs, pictures or even expressions that are used to identify goods or services from a certain company and it also differentiates products or services from one company to the other company
Benefits of trademark registration in India are:
- Legal protection
- Product differentiation
- Brand recognition
- Creation of an asset
- Business valuation and goodwill
Frequently Ask Question
– Sole Proprietorship and Company (OPC) sounds similar but they are not. Both are totally different. In sole proprietorship owner and business are same whereas the liability of owner is unlimited, however company has its own separate legal entity and liability is limited.
– The person who owns and manages a business on his on is called as proprietor; sole proprietor.
– No. If sole proprietor wants to involve other person in business as his partner he needs to convert sole proprietorship in partnership firm.
– Sole Proprietorship has no specific legal registration; registrations are done on bases of business and its nature such as:
- FSSAI registration. ( Food industry )
- MSME registration
- GST registration.
And it is mandatory to open a current bank account too.
– A sole proprietor can open current bank account if he has following documents:
- Authorization Certificate issued by Chartered Accountant
- Incorporation Certificate of the registration done by proprietor as per his business.
– Yes. A sole proprietor can hire employees there is no limit of hiring employees. Sole proprietor stands responsible for filing of taxes and proposed administrations after hiring employees.
– No. Sole proprietors have to file annual tax return. The same rates are applicable to sole proprietor as a individual. And Enjoy 5 Lakhs Basic Exemption Limit
– We provide Assistance to sole proprietor for opening a bank account. Also issue authorization certificate/letter signed by Chartered Accountant to sole proprietor for opening bank account.