Many businesses in India, which run offline or are locally based, work without any sole proprietorship registration. There isn’t any formal registration process for a sole proprietorship in India.
The only registration one requires is the opening of a bank account in the name of the proprietorship.
Businesses are divided into 2 categories according to which the documents needed for opening a bank account differs.
The businesses based on service include all the commerce companies dealing in services, not products. For example, website designs, app development, and so on. These services-based businesses require 2 documents for opening an account in the bank in the name of the proprietorship:
The businesses that involve the buying and selling of products are included in this category. For example, grocery stores, bookstore, and other related entities. The product based businesses require 2 documents for sole proprietorship registration:
Among all these documents, the proprietor’s PAN card is very necessary. Since the bank account is opened in the name of the business, the owner’s PAN card is required for obtaining a license, all types of certificates and filing income tax returns. It is the first step of registering a sole proprietorship.
The process of registering sole proprietorship is easy and involves a few short steps. The first step is to collect the owner’s PAN card and other above – mentioned documents. It would require the owner to apply for service tax registration or VAT registration depending upon the business type.
Once you obtain all the documents, apply for opening a current account in your preferred bank in the name of the proprietorship. It takes about 15 days to start and get going.
A sole proprietorship can be registered online as well. We at QuickCompany can help you in registering your sole proprietorship online. You can contact our team through the contact form or via phone. Our representatives will get in touch with you to understand your requirements and ask for a few scanned copy of all the required documents.
The online registration is considered as cheaper and more convenient in comparison to visiting the offices as they can be 70% less expensive.
Sole proprietorships are one of the oldest and most common forms of businesses which are found offline or in local areas. These are not large business companies but require registration for carrying out transactions and other activities in the name of the proprietorship. The process of registration only involves the opening of a bank account. It requires registering some documents and once collected; they can be submitted for receiving a registration certificate.
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