A sole proprietorship is India’s most straightforward and standard business structure, where a single individual owns, manages, and controls the business. Small business owners favor this structure due to its easy setup and minimal regulatory requirements. At Bandraz, we have assisted many sole proprietors come and register sole proprietorship online ventures successfully. With a bright track record of successful setups, we would like to give you a glimpse of what all goes into this process.
Here’s a step-by-step guide on how to register a sole proprietorship in India:
- Decide on a Business Name
The initial step in registering a sole proprietorship business is choosing a unique and relevant business name. The name should reflect the nature of your business and must not infringe on any trademarks or existing business names. It’s advisable to check the availability of the name to avoid future legal issues.
- Get your PAN card
A Permanent Account Number (PAN) card is required for tax purposes. You must apply for a PAN card from the Income Tax Department if you still need one. Since the owner and the business are regarded as the same, the proprietor’s name will appear on the PAN card.
- Open an account at a business bank
After receiving your PAN card, the next step is to open a bank account in your business’s name. To open the account, you will need your PAN card, identification, and proof of address. This separate account makes keeping accurate financial records and effectively handling company transactions easier.
- File a GST registration, if relevant
You must register for the Goods and Services Tax number if your firm’s yearly revenue exceeds Rs. 20 lakhs (or Rs. 10 lakhs in certain northeastern states). Businesses engaged in interstate supply, e-commerce, and other specific activities must register for GST. Using the GST portal, you can register for GST online.
- Get the Necessary Permits and Licenses
Depending on the type of business you operate, you might require particular licenses or permits. An example of this is a license under the Shops and Establishments Act, a trade license, or a health/trade permit. Depending on the sort of business and its location, different licenses are granted by the municipal authorities in the area.
- Sign up with the appropriate professional tax authorities
State governments impose a professional tax, which you must register for if you employ people. State-by-state variations exist in registration requirements, and local professional tax laws must be followed.
- Keep Records and Compliance Up to Date
Even though single proprietorships are subject to fewer regulations, it is still imperative that they keep accurate records of their firm. This entails monitoring financial transactions, submitting income tax reports, and following the GST and other relevant rules.
In conclusion, proprietorship firm registration in India is simple, but to guarantee seamless business operations, you must follow all applicable legal requirements. We understand your incoming to a foreign land could be more difficult than ever imagined.
But that’s what Bandraz is here for!
You can count on us for every little information needed for a successful establishment. Connect with us to know more.
