Documents Required for Sole Proprietorship Registration

A Sole Proprietorship business has the simplest structure, also not governed by any specific laws. It also gives the flexibility to operate the business in their own name also in a fictitious name. Having said that, Sole Proprietor remains personally liable for all the business transactions.

If a Sole Proprietorship business runs into financial trouble, creditors can bring lawsuits against the business owner. If such suits are successful, the owner will have to pay the business debts with his or her own money.

What is a Sole Proprietorship?

A Sole Proprietor needs to register his or her name while securing a local license. It is considered to be a popular business form and as it is simple, can be easily formed and dismantle that too at a nominal cost.

Documents required for registering Sole Proprietorship in India

1.  PAN card of the proprietor: As the business and the Proprietor are seen as the same. Thus, the proprietor can use their PAN card for opening bank accounts, obtaining licenses/ registrations/ certificates in the name of the Sole Proprietorship and filing an income tax return for the sole proprietorship.
2.  Aadhaar card/election I-card: ID proof of the proprietor is mandatory. As it is important to link business along with the other details which are linked with the Aadhar card.
3. Registered office proof: If the office is in a rented property, then the rental agreement and a NOC from the landlord of the office can be used as the office address proof. If the entrepreneur owns an office, the electricity bill issued by the municipal corporation or any other office ownership papers can work as office address proof.
4. Bank account number: The bank account number that is linked with office transactions needs to be submitted. This can also be an applicant’s account if he/she do not have a separate bank account for business.

Sole Proprietorship: Process of Registration

1. Applying for PAN. 
2.  Name the business.
3.  Open a Bank Account in the name of the business.
4. You can also register as a Small and Medium Enterprise (SME) under MSME Act or Udyam Registration, though not mandatory, it is beneficial to be registered under the same.
5. You can also register for GST if your turnover exceeds Rs 40 lakh.
6. One can also get a Shop and Establishment registration done.

How can we help you?

Online Legal India™ expert team of highly qualified CA/CS and 10+ years of experienced lawyers who would assist you to Register your Sole Proprietorship. We have budgeted services for those who are willing to venture into a company, business or any other kind of organization. 

 Apart from getting registered with MCA, any business personnel must also register with GST, TAX and Compliances, Accounting, Trademark Registration, or creative assistance in Logo Designing and Import Export Code registration to step a foot forward in the Foreign market. To deliver your digital assistance we have the best minds in the industry for your business incorporation, our concierge work round the clock to give you a hassle-free Sole Proprietorship Registration online.