Proprietorship Firm

 Proprietorship Firm

Most of
the people dream of owning and running their own business. Operating and
managing a business firm is quite complicated, and hence, several people drop
out of the idea of owning a business. Sometimes it becomes difficult to make
place in the market by replacing the existing names. Sole proprietorship firm
is a type of firm which can help individuals to own a business and live their
dreams while not having multiple legal responsibilities of the same. 

proprietorship
firms are considered as individuals owning businesses. Sole proprietorship
refers to a business where there is no distinction between the owner and the
business entity. A sole proprietor is also known as a sole trader, individual
entrepreneur, and various other names. Hence there are some benefits of having
a proprietorship firm too. 

Proprietorship Firm Registration Process 

proprietorship
firm does not need any specific registration, but the owner is advised to get
some essential registrations for better operational functioning of the firm.
The registrations required for a proprietorship firm are: 

MSME Registration 

It is
not compulsory to get an MSME (Small and Medium Enterprise) registration, but
it improves the chances of the business to get loans and helps in other legal
matters. The MSME registration can be done through an online registration
process on MSME official website. This is a simple process and makes it easy
for the sole proprietors. 

Shop and Establishment Act License 

Shop
and Establishment Act License is not mandatory for all sole proprietorship
firms but most of the firms have to obtain this license, as per the local laws
of the region of the business. The Shop and Establishment License is issued by
municipal party. This license is given based on the number of employees working
in a company. The registration process depends state-wise and business owners
need to check the specific state-wise website for the registration. 

Goods and Services Tax (GST) Registration 

Goods
and Services Tax registration is necessary only, if annual turnover is more
than Rs 40 lakh and Rs. 20 lakh for businesses operating in North-eastern
states. GST registered number is also essential, if the business owner wants to
sell products online on e-commerce portals, such as Amazon, Flipkart, eBay, and
more. It is important to note that GST registration is not mandatory for sole
proprietorship firms. Getting GST registration will help the business owner to
keep his/her taxation in check throughout all the transactions made in the name
of the proprietorship firm. 

Office Address Proof 

A
registered office address proof is necessary for several procedures which are
essential for the functioning of the business. If the office is in a rented
property, the rental agreement and a NOC from the landlord of office can be
used as the office address proof. If the entrepreneur owns a office, the
electricity bill issued by the municipal corporation or any other office
ownership papers can work as office address proof.