One thing which you need to know is that there is no such registration process of sole proprietorship firms like corporate bodies. They need to get registered through various other registration or licenses like GST registration, Udyog Aadhaar registration, Shop and Establishment Certification etc. many people have this confusion regarding the sole proprietorship firm registration, hence we came up with the blog. Here we are going to discuss the entire process to get register a sole proprietorship company. As mentioned above, there are many ways through which a sole proprietorship company can get register and we will discuss all the important ones in the present write-up. Hence if you want to know how to register a sole proprietorship company, you must read the current blog until it ends.
What is a Sole Proprietorship Firm?
Any business started by a sole person which does not have qualities like limited liability, separate legal entity, status of juristic person, perpetual succession etc. is called sole proprietorship firm. These firms are the best for the businesses which are running on a smaller level. It has been said because these firms are not having heavy formalities like corporate bodies. They are low cost entities which are having very less compliances. They don’t create a burden on the proprietor who is the sole business owner of such entities. Instead of creating burden such entities give leniency to do the business freely. Generally there is no need to register a sole proprietorship company as they can be recognized by GST or Shop and Establishment Certificate or Udyaog Aadhaar etc. hence on the basis of the above information it has been suggested to the small business owners to start their firms as sole proprietorship.
Who can Register a Sole Proprietorship Company?
Some of the key individuals or entities which can be registered as sole proprietorship firms are mentioned below:
- Anyone wanting to start and operate a business on their own can register a sole proprietorship.
- Owners of small businesses looking for a simple and cost-effective business structure.
- Individuals engaged in trading activities or running a retail business.
- Professionals offering services, such as consultants, freelancers, or small service businesses.
- Individuals operating small shops or retail establishments.
- Individuals involved in artistic or craft-related businesses.
- People running businesses from home, like online sellers or consultants.
- Individuals selling products or services locally.
- Individuals with micro-businesses require a simple and easy registration process.
- Small startups looking for a straightforward business structure for initial operations.
Methods of Registering a Sole Proprietorship Firm
As mentioned above there are various methods through which one can register a sole proprietorship company in India out of which some are discussed below:
Sole Proprietorship Firm Registration Under Shop and Establishment Act
- Confirm that your business falls within the criteria specified by the Shop and Establishment Act.
- Go to the official website of the State’s labor department where your business is located.
- Locate the registration form provided by the labor department on the website.
- Fill in the form with essential details such as business name, address, nature of the business, and working hours.
- Include your personal details as the proprietor, such as name, address, and contact information.
- Specify the number of employees working in the establishment.
- Clearly mention the regular working hours and any additional details about holidays or weekly offs.
- Attach necessary documents, including the proprietor’s ID proof, address proof, and passport-sized photographs.
- Pay the requisite registration fees, if applicable.
- Submit the filled application form along with the supporting documents and fees to the concerned labor department.
- In some cases, a labor inspector may conduct an inspection of the premises.
- The certificate of shop and establishment registration will be issued to you upon processing and approval of the application.
- Display the registration certificate at a prominent place within your business premises.
Register a Sole Proprietorship Company Under Udyog Aadhaar
- Go to the official Udyog Aadhaar registration portal.
- Enter your 12-digit Aadhaar number which has been given on your Aadhaar Card, in the respective field.
- Verify your Aadhaar details through a One-Time Password (OTP) sent to your registered mobile number.
- Fill in the required personal details such as name, social category, gender, and physically handicapped status.
- Provide details about your business, including the name, type of organization, and location.
- Specify the main industrial activity (manufacturing or service) and the NIC Code related to your business.
- Enter the bank account number and the IFSC code where you want to receive government benefits or subsidies.
- Mention the total investment in plant, machinery, equipment, and other assets.
- Indicate the total number of people employed in the business.
- Provide information about the District Industry Center pertaining to your business location.
- Review the entered details, and if everything is accurate, submit the application.
- Once submitted, you will receive an acknowledgement with a unique Udyog Aadhaar Number.
- Download the Udyog Aadhaar certificate using the provided UAN.
- Display the Udyog Aadhaar certificate at a prominent place within your business premises.
Register a Sole Proprietorship Company Under Goods and Services Tax Act
- Go to the official GST portal (www.gst.gov.in).
- Navigate to the ‘Services’ section, select ‘Registration,’ and then choose ‘New Registration.’
- Provide your legal name, business name, PAN (Permanent Account Number), email, and mobile number.
- Verify your mobile number and email through One-Time Passwords (OTPs) sent to the respective devices.
- If you have already initiated the registration process and have a TRN, enter it. Otherwise, proceed with a new application.
- Complete Part B with details like the business constitution, principal place of business, and additional places of business.
- Enter the bank account details for the business.
- Upload the necessary documents, including proof of business registration, identity and address proofs, bank statements, and photographs.
- Submit the application for verification.
- The GST officer will process your application, and you may receive clarification requests or modifications if needed.
- Once approved, you will receive your Goods and Services Tax Identification Number (GSTIN) and a certificate of registration.
Conclusion
Registering a sole proprietorship company in India involves several accessible methods, each tailored to the nature and scale of the business. Whether opting for Shop and Establishment Act registration for local businesses, Udyog Aadhaar for small enterprises, or Goods and Services Tax (GST) for broader recognition, the process to register a sole proprietorship company is designed to be straightforward. These registrations cater to a diverse range of businesses, from local shops and services to online ventures, providing legal acknowledgment and facilitating compliance. The flexibility in choosing the registration method in order to register a sole proprietorship company allows entrepreneurs to align with the specific requirements of their sole proprietorship, making it a simple and adaptable process to establish and operate a business in India.
