A Complete Guide for Sole Proprietorship Registration-SwaritAdvisors

A Sole proprietorship is considered to be owned by an individual that is neither seen as a company nor seen as a corporation. Sole proprietorship registration is pursued with the intent of opening a current bank account and run your own small business.

If someone starts selling a product or service at a small level on their own then they are actually establishing themselves as nothing else but sole proprietor. As we move further in this blog. We will present you a complete guide for Sole Proprietorship Registration. Swarit advisors has a team of professionals who help people register their business under the sole proprietorship. You just need to give us a call and our team will take care of everything.

sole proprietorship registration

What is the procedure of Sole proprietorship registration?

• The first step is to apply for the PAN, if you already have a PAN then there is no need to apply for it again,
•  After this, you just need to come up with the business name
•  There are no formalities for the registration; you just need to open a bank account on the name of the business, 
•  It is beneficial to register your business as an MSME under the MSME Act. Although it is not mandatory, however always recommended going for the same
•  In case the annual turnover of your business goes beyond 20 lakhs , you can file the application for GST registration as well

Basic documents required for the sole proprietorship registration

• You need to submit the utility bills such as electricity bill/ telephone bill as an address proof
• All the KYC documents of the bank
• A License issued by the shops and Establishment Act
• Income Tax Returns of the proprietor

       

sole proprietorship registration

What are the benefits of sole proprietorship registration?

•  One of the biggest advantages of sole proprietorship registration is that it can be easily run by a single person
• In sole proprietorship, there are minimal compliance that proprietor has to adhere
• This type of proprietorship registration is economic and considered to be less expensive to start in relation to other forms of businesses
•  If you go for sole proprietorship registration, there are no corporate taxes that have to be paid
• When you run a sole proprietorship business, there is only a single person to make decisions and have total control over it.

For every goods and service offered there are two sides of a coin, if there are some advantages then there must be few disadvantages as well. Let’s look at the disadvantages of the sole proprietorship registration which will you to make a better decision, and; conclude whether you want to set up a sole proprietorship firm or not?

Disadvantages of a sole proprietorship registration

•  Unlimited liability means the owner will be liable for all the business transactions
• Sole proprietorship business completely depends on the single person, so if something unfortunate happens to that person, there is a risk of shutting down of business
• You may find difficulty in raising funds for the business

Contact swarit advisors for more information.For more details, go here :- https://swaritadvisors.com/