Business

Proprietorship Firm Registration

1) Overview of Proprietorship Firm Registration:

a) Proprietorship firm registration is a Single person firm registration.

b) It is also called as sole proprietorship firm registration.

c) A Proprietorship firm have any name but it does not have already registered trademark name.

d) A Proprietorship firm has less than Rs.2.5 lakhs of income per annum is not required to pay any income tax.

e) Sole Proprietorship firm registration was mainly register to open a bank account in the name of their company name.

f) In a proprietorship firm, the owner of the person was called Proprietor.

g) The proprietor manages the entire company

h) he/she is the responsible of each and every transaction made in his/her company.

i) Proprietorship firm is not separate legal entity as compared as other company registration.

2) Documents required:

The most important documents needed for proprietorship firm registration.

a) Proprietor Aadhaar card

b) Proprietor Pan card

c) Proprietor Passport size photo

d) Latest company located rental or lease agreement and eb bill (For rental place), or Eb bill and property tax receipt (For own place)

e) Proprietor’s saving account passbook front page or cancelled cheque or bank statement

3) Proprietorship Firm Registration types:

Sole Proprietorship Firm registration can be done in 5 ways in India

a) Register under MSME/Udyam.

b) Register under GST

c) Register under FSSAI

d) Register under Shop and Establishment Act License

e) Register under Trade License

3.a) Register under MSME/Udyam:

a) MSME stands for Micro, Small and Medium Enterprises.

b) Earlier it is called as SSI, Udhyog Adhaar registration and now it is also called as Udyam registration.

c) MSME is just identification of any type of business.

3.b) Register under GST:

a) GST means Goods and Service Tax

b) GST is a single tax that will replace all the existing indirect taxes in India.

c) These taxes include Sales tax (VAT), Excise duty (CENVAT), Service tax, Entertainment tax, Luxury tax etc.

d) Goods and services are divided into five tax slabs for collection of tax – 0%, 5%, 12%, 18% and 28%.

3.c) Register under FSSAI:

a) FSSAI stands for Food Safety and Standards Authority of India which monitors the food business in India.

b) In India if we start the any food related business then we will take FSSAI registration.

c) It will categorize 3 types as per your business activities and your annual turnover

1) Basic registration
2) State license
3) Central license

d) FSSAI certificate was issued by the respective food authorities and it was valid for a period of 1 to 5 years.

3.d) Register under Shop and Establishment Act License:

a) The registration was varies on each and every state.

b) The Shop and Establishment Act was regulated by the Labour Department of the respective states.

3.e) Register under Trade License:

a) The trade license was a certificate that gives permission to the businessman to run a particular trade in a particular area.

b) It was govern by each and every state Municipal Corporation.

c) The license only issue to particular business only, not to carry out any other business.

4) Advantages of Proprietorship firm:

a) Proprietorship firm can handle only single person who operates and manages the whole business.

b) The whole business which means 100% profits are belongs to the proprietor.

c) It will take very less time to register as compared to other company registration.

d) The income tax rate for sole proprietorship firm is the same as that of the income tax rate of individuals.

e) As comparison to other business form, cost of registering proprietorship firm is very low.

f) The proprietor does not have to consult anyone for taking his decision.

g) Life time certificate when you register under MSME/Udyam or GST. You can’t renew that certificate.

https://www.articlehills.com/

5) Author Bio:

a) Registrationshops Business Consultancy Services was India’s leading online legal services provider located in Madurai.

b) We are dedicating to helping people easily start their company and grow their business, at an affordable cost.

c)We can help to people for company formation, company registration and other online registration services.

For more: https://registrationshops.in/proprietorship-firm/

Mail: contact@registrationshops.in

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