5 things to do immediately about Sole Proprietorship Registration-Swaritadvisors

the benefits of the sole proprietorship, the process of starting your own sole proprietorship

What are the benefits provided by the sole proprietorship registration?

·         Effortless incorporation

For starting the sole proprietorship, you need to fulfill the minimal formalities. However, it may be difficult to open a bank account in the name of a business, as you will be required to provide the documents such as VAT or service tax or GST registration.

·         Identity of the business

As the business operating under the sole proprietorship is not registered, you can choose any name for the business as long as it does not misuse or violate the already registered trademark. As the name or trademark used for the sole proprietorship is not registered, so it can be used by other business entities as well.

·         Lesser taxes involved

As the sole proprietorship is operated by the single individual, so the amount of tax paid will in accordance with the tax levied on the individuals; you do not have to any taxes if the income from the business is less than Rs. 2.5 lakhs and if the income is above Rs. 2.5 lakhs then taxes will be filed according to the tax slab defined by the income tax department of India.

·         Sole promoter

Sole proprietorship requires the involvement of a single person for the registration and promotion of the business. For most of the business entities operating in India, there have to be at least two members for the incorporation of the company or partnership firm.

·         Trouble free end of business

If the business under sole proprietorship is not doing well, then you can close down the business at anytime. It does not require any formalities to end the business.

Sole proprietorship falls under the category of unregistered business whose operations are taken care of by the one person. This form of business is seen mostly among the micro and small business operating in the unorganized sectors. The Registration of Sole proprietorship is considered to be easier to start and involve lesser formalities and compliance to adhere.  

However, the sole proprietorship doesn’t offer benefits such as limited liability, corporate status, perpetual status, transferability etc. So, one must keep these above points before jumping into the business by opening the sole proprietorship. The presence of sole proprietorship is developed through the tax registrations and some other registration that are obtained by the unorganized businesses. For example, you can apply for the GST registration, VAT or service tax in the name of a sole proprietorship. Swarit advisors is one the pioneering company in the market, that helps people to set up their own sole proprietorship business. If you are looking to start your own business, do contact swarit advisors. Further, we will take a look 5 things to do immediately about Sole Proprietorship Registration;

List of documents required for the sole proprietorship registration

You need to provide the documents for GST registration or any other similar registration to prove the existence of the business.

Who needs a GST registration?

For obtaining the certificate of GST registration you need to take a look at the checklist before filling the application-

•     If you are operating a business within a state and the turnover is more than Rs. 20 lakh
•     If the business is involved in the interstate sales or services
•       Business is linked to E-commerce or involved in internet based business
•     If you are any of these; traders, retailers, manufacturers, aggregators

While if we look at the list of documents required for the GST registration for a sole proprietorship

Documents required for GST registration in case of the sole proprietorship

•         PAN card, photo
•      Aadhar card of the owner of the business
•      You need to provide the proof of business place
•      At last, you have to submit the copy of bank statement

You just need these simple documents for developing the identity of your business. You must have understood by now, that sole proprietorship is really simple to begin with if there is an idea popping up in your mind; what are you waiting for. Go for it. For more information, please contact swarit advisors. Author is an expert of keyword, go here for more interesting information 

Source:- Wordpress