A sole Proprietorship in India is a single-person establishment or one-person company wherein an individual owns, manages, controls, tools, and executes his/ her business on their own. As it isn’t majorly governed by any law, so it becomes the easiest form of doing business in India. It isn’t obligatory to register as a sole procurement but to gain duty benefits people do register their establishment as a sole procurement. The profit and losses of an association, both are participated by only one person retaining the company or business.
Proprietorship Firm Registration Process
A sole procurement establishment doesn’t need any specific enrollment , but the proprietor is advised to get some essential enrollments for better functional functioning of the establishment. The enrollments needed for a procurement establishment are
1. MSME Registration
It isn’t mandatory to get an MSME( Small and Medium Enterprise) enrollment , but it improves the chances of the business to get loans and helps in other legal matters. The MSME enrollment can be done through an online enrollment process on MSME sanctioned website. This is a simple process and makes it easy for the sole possessors.
2. Shop and Establishment Act License
Shop and Establishment Act License isn’t obligatory for all sole procurement enterprises but utmost enterprises have to gain this license, as per the original laws of the region of the business. The Shop and Establishment License is issued by the external party. This license is given grounded on the number of workers working in a company. The enrollment process dependsstate-wise and business possessors need to check the specificstate-wise website for the enrollment .
3. Goods and Services Tax( GST) Registration
Goods and Services Tax enrollment is necessary only if periodic development is further than Rs 40 lakh andRs. 20 lakh for businesses operating in North- eastern countries. GST registered number is also essential if the business proprietor wants to vend products online one-commerce doors, similar as Amazon, Flipkart, eBay, and more. It’s important to note that GST enrollment isn’t obligatory for sole procurement enterprises. Getting GST enrollment will help the business proprietor to keep his/ her taxation in check throughout all the deals made in the name of the procurement establishment.
4. Office Address Proof
A registered office address evidence is necessary for several procedures which are essential for the functioning of thebusiness.However, the rental agreement and a NOC from the landlord of the office can be used as the office address evidence, If the office is in a rentedproperty.However, the electricity bill issued by the external pot or any other office power papers can work as office address evidence, If the entrepreneur owns an office.
Benefits of Proprietorship enterprises’
Sole Proprietorship Businesses have several benefits for their possessors. Some of these benefits are bandied in detail below
1. Smooth launch
There’s no elaborate enrollment process for the establishment of procurement enterprises. A procurement establishment uses the proprietor’s legal identity. Due to this provision, there’s no need to register the establishment independently until it’s necessary. This smooth enrollment process makes it easier for the possessors to register their enterprises, which is salutary.
2. Flexible functional Strategies
Being the sole proprietor of a business, it’s easier to understand and operate the same. The proprietor is the only decision- maker. Hence, the decision is made hastily and more for the company. One proprietor businesses have further straightforward functional functioning because there’s the only person to produce and apply plans for the business.
3. concentrated gains
In procurement enterprises, there are no establishment rules for the plutocrat earned by the business since there’s only one proprietor of the company. The proprietor is the only person to accumulate the gains and farther invest it in the request and other gambles. Sole power gets relieve of the benefit related conflicts in the establishment. plutocrat comes in to grease and maintain the processes in the establishment.
Any sole owner isn’t entitled to pay income duty if the gains of the company are lower thanRs.2.5 lakh per time. This is a significant benefit for the establishment to start small and save on levies. still, it’s essential to note that the establishment has to pay income levies once the gains exceedRs.2.5 lakh per annum.
These are some of the significant benefits of retaining a sole procurement establishment. Having a procurement establishment can prop business loan operations which can help with investment capital for business.