Most of the people dream of owning and running their own business. Operating and managing a business firm is quite complicated, and hence, several people drop out of the idea of owning a business. Sometimes it becomes difficult to make place in the market by replacing the existing names. Sole proprietorship firm is a type of firm which can help individuals to own a business and live their dreams while not having multiple legal responsibilities of the same.

proprietorship firms are considered as individuals owning businesses. Sole proprietorship refers to a business where there is no distinction between the owner and the business entity. A sole proprietor is also known as a sole trader, individual entrepreneur, and various other names. Hence there are some benefits of having a proprietorship firm too.

Proprietorship Firm Registration Process

proprietorship firm does not need any specific registration, but the owner is advised to get some essential registrations for better operational functioning of the firm. The registrations required for a proprietorship firm are:

MSME Registration

It is not compulsory to get an MSME (Small and Medium Enterprise) registration, but it improves the chances of the business to get loans and helps in other legal matters. The MSME registration can be done through an online registration process on MSME official website. This is a simple process and makes it easy for the sole proprietors.

Shop and Establishment Act License

Shop and Establishment Act License is not mandatory for all sole proprietorship firms but most of the firms have to obtain this license, as per the local laws of the region of the business. The Shop and Establishment License is issued by municipal party. This license is given based on the number of employees working in a company. The registration process depends state-wise and business owners need to check the specific state-wise website for the registration.

Goods and Services Tax (GST) Registration

Goods and Services Tax registration is necessary only, if annual turnover is more than Rs 40 lakh and Rs. 20 lakh for businesses operating in North-eastern states. GST registered number is also essential, if the business owner wants to sell products online on e-commerce portals, such as Amazon, Flipkart, eBay, and more. It is important to note that GST registration is not mandatory for sole proprietorship firms. Getting GST registration will help the business owner to keep his/her taxation in check throughout all the transactions made in the name of the proprietorship firm.

Office Address Proof

A registered office address proof is necessary for several procedures which are essential for the functioning of the business. If the office is in a rented property, the rental agreement and a NOC from the landlord of office can be used as the office address proof. If the entrepreneur owns a office, the electricity bill issued by the municipal corporation or any other office ownership papers can work as office address proof.