How can We Register a Sole Proprietorship?

While planning to set up a new business venture the most important thing to be settled is the type of business model one will operate in. There are so many options to choose from like a sole proprietorship, partnership, LLP, company etc. If you are a person who enjoys working alone and is at its creative best while doing that sole proprietorship is the best way to do it. 

 

Legally there is no prescribed procedure for Sole Proprietorship Registration. However in order to operate opening a bank account is very necessary. And for setting up a bank account in the name of the business a proof of its legal existence is very necessary. Such proof of legal entity can be in the form of any of the following;

1.   GST Registration Certificate
2.   MSE Registration Certificate

GST Registration is required to be applied in case it is expected that the business will be covered in any of the prescribed conditions for GST registration. Such conditions include expected annual turnover, interstate supply, supplying through e-commerce operator etc. On the other hand, one can also apply for GST on a voluntary basis. One can apply for MSME Registration without any condition on a voluntary basis.

Benefits of Sole Proprietorship

• Only one person can start a sole proprietorship.
• No legal formality is required to set up a sole proprietorship and dissolve it.
• It ensures creative freedom.
• The proprietor has complete control over the business activities.
• Minimal annual compliances are required to be done.