BENEFITS OF A PROPRIETORSHIP REGISTRATION
WHY SOLE PROPRIETORSHIP FIRM REGISTRATION ?
EASY TO ESTABLISH
The formation of proprietorship enterprises does not require a lengthy registration process. A proprietorship business operates under the owner’s legal name. This clause eliminates the need to register the company separately until it is absolutely necessary.
EASY TO OPERATE
It is easier to comprehend and operate a firm when you are the only proprietor. Only the owner has the authority to make decisions. As a result, the choice is taken more quickly and in the best interests of the organisation.
TAX ADVANTAGES
If the profits of a sole proprietorship are less than Rs. 2.5 lakh per year, the sole owner is not required to pay income tax. Starting small and saving money on taxes is a huge benefit for the company. It is important to note, however, that once the profits exceed Rs. 2.5 lakh per year, the company must pay income taxes.
SOLE BENEFICIARY OF PROFITS
Because there is only one owner of a proprietorship, there are no fixed restrictions governing the money made by the business. The gains are accumulated by the owner, who then invests them in the market and other activities.
SOLE PROPRIETORSHIP FIRM REGISTRATION PROCESS
REGISTER PROPRIETORSHIP FIRM ONLINE IN FOLLOWING STEPS
1- First step is to file the application of PAN Card.
2- After PAN Card allotment, the next step is to choose a unique name for your sole proprietorship firm registration process online.
3- The final step is to open up your sole proprietorship firm registration bank account. After this, you can start the business operations.
A sole proprietorship firm registration process does not require any specific incorporation approval from the department, however, the owner is advised to obtain some necessary registrations to ensure smooth operational functioning of his/her sole proprietorship firm registration online. The following are the pre-requisites to register sole proprietorship firm online:
1. Shops and establishment registration
The Shop and establishment licence applies to all types of businesses, including shops, restaurants, commercial establishments, retail trade/business, profit-making organisations, public amusements, and so on. Regardless of whether a business is fully operational or not, it is necessary to register the business. This licence is issued by the local municipal corporation and is based on the number of employees working in a sole proprietorship firm.
2. GST Registration Online
Many indirect taxes, including as service tax, value added tax, central sales tax, excise duties, and additional customs duties, have been replaced by GST. GST registration for sole proprietorship company is necessary for individuals who make inter-state supplies of goods and services and have an annual turnover of more than Rs.40 lakh.
Obtaining a GST registration establishes the sole proprietorship firm registration as a legal seller of services or goods. This has resulted in a significant reduction in taxation and compliance costs. If a sole proprietorship firm operates without a GST registration, fine or penalty apply, according to the GST Act.
3. Udyog Aadhar Registration (MSME Registration)
Under the Micro, Small, and Medium Enterprise Development Act, 2006, micro, small, and medium-sized businesses in India are eligible for Udyog Aadhar Registration.
Previously known as MSME registration, the Udyog Aadhar registration process is entirely online just like sole proprietorship registration process. The following are the primary goals of Udyog Aadhar registrations:
a) To enable micro, small, and medium-sized businesses to compete effectively with international competitors. b) To effectively address the problems of unemployment and poverty by promoting the growth of micro, small, and medium enterprises on a large scale. c) To make available to SSI units the benefits of various government schemes through a single point of contact. d) To protect small-scale industries from financial exploitation at the hands of large corporations. 4. TAN RegistrationThe Tax Deduction Collection Number, or TAN, is a ten-digit number that is required for all individuals who are required to pay the Tax Deduction at Source, or TDS, on behalf of the government.
To quote the TAN number, the person deducting the tax at the source must deposit the deducted tax to the central government.
It is important to note that a salaried worker is exempted from obtaining a TAN or deducting tax at the source. While distributing salaries or making payments to the contractor or subcontractors, or paying the rent amount of above Rs.180,000 per year, a sole proprietorship firm registration and other entities must deduct tax at the source.
5. FSSAI Registration
If the sole proprietorship firm registration online is involved in the selling or handling of food goods, an FSSAI registration should be sought in his name from the Food Safety and Standard Authority of India.
The following is a list of documents that must be submitted in order to register with the FSSAI:
a) Photo of the food business owner or manage. b) Ration card, voter ID card, Pan card, driving licence, passport, Aadhar card, Senior Citizen Card, Department Issued ID are all examples of identity proof documents. c) Supporting Documents (if any): NOC by the Municipal council, Health NOC.