Sole Proprietorship is the most common form of business owned by individual small business owners. It’s an unregistered business entity that is owned and run by a Proprietor. A Proprietor is a living person who is the owner of a Sole Proprietorship business. Hence the PAN and other credentials of the propitiators are used for obtaining the business registrations and licenses.
Proprietorships are very easy to start and have very minimal regulatory compliance requirement for starting and operating. So, its ideal for small businesses and first-time Entrepreneurs who would like to get a taste for business.
How to Establish a Sole Proprietorship Firm in India
All the business structures need to follow the formation procedures and necessary registrations. In order to run the business, there are necessary business registrations and licence has to be obtained by the proprietor, which serves as the identity of the business.
GST Registration
GST registration must be obtained if the Proprietor is selling goods or services that cross the GST turnover threshold limit for registration. In most states, GST registration is required for service providers having annual revenue of more than Rs.20 lakhs and in case of traders – annual revenue of more than Rs.40 lakhs.
MSME Registration
Sole Proprietorship can be registered under the Ministry of Micro, Small and Medium Enterprises. MSME registration or Udyog Aadhar can be .
TAN Registration
Registration with Income Tax dept for salary TDS deductions.
Import Export Code
If the proprietor business is doing Import and/or Export of Goods or services, the Import Export Code or IE Code can be obtained from the DGFT in the name of the business
FSSAI Registration
In case the Proprietorship is involved in the selling of food products or handling of food products, FSSAI registration must be obtained from the Food Safety and Standard Authority of India in the name of the Proprietor.
