Sole Proprietorship Firm

Its a called simply firm. in India 40% small business or startups are running on this to testing their ideas. Even in the rare cases startups have a partners in the starting of business. most of the founder are sole entrepreneurs. so its a best legal entity if you want to test your ideas in the business.

Requirements - You have to required at least One Person For the Registration Purpose.

Tip - Let suppose there are lot of the Entrepreneurs in the India which are doing the job but they want to test their ideas in the business. Now most confusion part is you have already sign the bond or employment contract with the company so best thing is always register on your family member for the testing your ideas in the startup.

Procedure to Register Sole Proprietorship Firm in India - Now there are lot of the people are confuse about How to Register the firm. First of all you have to understand that Sole Propreitorship Firm is only a Legal Entity Name in India. As per the rules there is no separate Registration of the Firm. its means without the Business Registration you are able to doing the business in India but wait…..

Here is a Confusion - Confusion is as a Sole Proprietorship Firm you are able to doing the business in India without registration but on your personal name without any brand or Firm Name, Yes So Now if you want to doing the business on your any brand name (For Ex- Flipkart Internet Services) then you have to required at least minimum 2 Legal Certification which is on your Firm Name.

Certification Required for the Sole Proprietorship Firm -

Service and Product Based Business - if you are doing the Product based Business then you have following option to choose the right certification -

a) GST - If businesses whose turnover exceeds Rs. 20 lakhs (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person.Govt Fee is NIL but if you take the help from the Professionals then its cost nearby 2000 to 5000/- INE in the Market, Vary professional to professional.

b) MSME Registration or Shop act License or Trade License or Gumasta License - Its a best certification when not want GST registration for a startup in the starting and you want to just test your ideas on the small level.

Documents Required -

• PAN Card Copy of the Proprietor
• Adhar Card or Voter id or Passport 
• Firm Address Proof like elect bill copy or rent agreement or gas bill or sale deed etc with NOC.
• Bank Account

Advantages in the Sole Proprietorship Firm -

• Less Income tax on the slab basis Rule
• Less Compliance as compare to other legal entity
• Less Costing with Less annual maintenance charges

Disadvantages in the Sole Propreitorship Firm -

• Personal Liability of the business
• Not a Proper legal or separate legal entity because business registration is not required.
• Not trustworthy as compare to the Company.

Costing -

• MSME: Govt Fee is NIL but if you take the help from the Professionals then its cost nearby 1000 to 3000/- INE in the Market, Vary professional to professional.

• GST  - If businesses whose turnover exceeds Rs. 20 lakhs (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person.Govt Fee is NIL but if you take the help from the Professionals then its cost nearby 2000 to 5000/- INE in the Market, Vary professional to professional.