How to Register a Sole Proprietorship Firm In 2021?

The sole proprietorship is a special kind of business that is run by a single individual. Particularly, among the small capital traders, the sole proprietorship business style is very popular. The single owner of the sole proprietorship firm is also responsible for paying personal income tax based on the profit of the business. Read the blog to know more about sole proprietorship firm registration. 

Sole Proprietorship Features

You may have read the point earlier that the sole proprietorship business model is ideal for small traders. You can take a look at other special features of owner proprietorship business.

1. All the decisions taken in a sole proprietorship firm, officially taken in the name of one person.
2. Sole proprietorship types of business follow little legal compliance. So, starting a sole proprietorship business is much easier for any normal person.
3. The tax-related problems are not that complex in case of sole proprietorship firms.
4. You have to file an income tax return if your basic income is 2.5 lakh before deduction.

These are the four features of the sole proprietorship firms.

Sole Proprietorship Establishment Ways:

There are ways like registration and license that a sole proprietorship can be founded. 

1. MSME Registration: When the sole proprietorship is going to be established under the Ministry of Micro, Small, and Medium Enterprises then Udyog Aadhar Registration needs to be acquired.

2. FSSAI Registration: The FSSAI Registration is must if the sole proprietorship business deals with food supply. The Food Safety And Standards Authority of India will provide the FSSAI Registration to the sole proprietorship entity.
    
3. Import Export Code: DGFT or Directorate General of Foreign Trade is going to take a prominent position if the sole proprietorship business has aimed to make business in the import export arena.
    
4. GST Registration: The GST registration is must for all kinds of businesses conducting in India. GST registration is required for the service providers whose earning is more than 20 lakh and for the traders whose earning is more than 40 lakh.

You need to open a current bank account if you are in the sole proprietorship business. For opening a current bank account in a bank, you need a GST registration first.

Sole Proprietorship Advantages 

You can have a look at the three advantages of the sole proprietorship firms.

1. Quick Decision Making Facility 

The first advantage of sole proprietorship business is the owner can take all the decisions quickly as he/she is the single person, possessor proprietorship, to run the sole proprietorship firm.

2. Complete Control Over Business

The sole proprietorship firm owner has complete control over his/her business. The owner takes all the decisions quickly and he/she possesses complete control over the business.

3. Minimum Capital Requirement

Unlike the other types of company registrations, a sole proprietor would require a little amount of funds to register and start the business operation. 

These are the positive advantages of sole proprietorship registration.

Documents Required For Incorporating a Sole Proprietorship

For starting a sole proprietorship firm in India in 2021, you need a few official documents for registration purposes.

• Aadhaar Card
• PAN Card
• Bank Account
• Registered Office Proof

These are the four official documents required for registering a company as sole proprietorship firm. 

What’s The Requirement of Online Legal India™?

The business procedure of sole proprietorship firms in India is easy. The complex process is registering a firm as sole proprietorship company in India. Many business persons search on the internet regarding how to register sole proprietorship in India. 

Unfortunately, the business entities become confused in the mid-way process of registering the company as the sole proprietorship firm. The better way is to take the help of Online Legal India™ experts who can assist you in sole proprietorship firm registration by paying a minimal fee.

Conclusion

In 2021, the sole proprietorship firms are recognised as one of the best business models to be followed in all over India. A single owner who is taking all the business decisions, can make the business free from all types of legal complications. 

But, the procedure of sole proprietorship firm registration may seem to you a complex situation. That is why, you may take the help of a consultation firm,  Online Legal India™, to make the business registration process easy and quick.