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;
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.
