How to Register Sole Proprietorship Firm in Indiaby C.A Rohit Taneja Company Registration Platform
A sole proprietorship is a business that is owned, managed and controlled by one person. It is one of the most common forms of business in India. Proprietorship are very easy to start and have very minimal regulatory compliance requirement for getting started.
The owner receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts. Every asset of the business is owned by the proprietor and all debts of the business are the proprietor's.
A sole proprietor may use a trade name or business name other than his, her, or its legal name. They will have to legally trademark their business name, the process being different depending upon country of residence.
Step by Step Process
Decide a name for your Business
Research it to avoid trademark infringement. This can be done by entering the desired name into a search engine or exploring your county or state's fictitious name database.
Register your Business Name
Register the name of your business with the Secretary of State or the Department of Corporations in your jurisdiction. If you will be doing business under a name other than your own, you may have to register that name as a DBA ("Doing Business As") or fictitious name.
Secure the Necessary Permits
Acquire the federal, state and local permits needed to conduct a sole proprietorship business. These may include state and local licenses for tracking and monitoring businesses for tax purposes and to operate legally; tax registration; licenses to sell particular products, such as alcohol or fuel; and building, zoning, environmental and health permits.
Prepare a Business Plan that outlines your Goals
Your business plan should include a standard balance sheet, a statement of income and a cash flow analysis. A business plan will assist you in apportioning resources correctly, deal with unexpected situations and make informed decisions. Templates for writing business plans are available online.
Open a Bank Accounts
Open a separate bank account in the business name, even if the business is operating under your name.
Maintain Financial Records
Invest in accounting software or hire an accountant or bookkeeper to keep the financial records for your business organized.
Seek the Advice of an Attorney
By consulting with an attorney, you ensure that the legal concerns involved with starting a sole proprietorship are addressed.
After the Sole Proprietorship Registration certificate is obtained, you can open a current bank account in the name of your shop/establishment. Then you have to apply for PAN and TAN in the name of your establishment. You also need to apply for VAT/CST or service tax registrations based on the type of business after reaching a threshold limit.
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Created on Dec 31st 1969 18:00. Viewed 0 times.