What is Proprietorship Firm ?
Sole Proprietorship Firm Registration is Single Person Firm Registration i.e is the main objective is Open Current Bank Account on the Name of Business so it’s a simply firm which is enable doing business in India with Less Compliance and Less Costing. a Sole Proprietorship Firm require minimum 2 Legal Entity Proof for open a Current Bank Account.
List of Registration you can obtain for Proprietorship firm in India:-
1. Shop Act Registration or Form 3 : Registration under Shop and Commercial Establishment Act Commonly known as “Shop Act Registration” Most of the Banks open Current Bank Account for this Registration.
2. GST Registration: As GST Registration is Mandatory only if Gross Sales within state exceeds Rs. 40 Lakh in any Financial Year , but you can voluntary take GST Registration,
- GST Registration is Mandatory if you are selling products on E commerce Marketplace Websites like : Amazon, Flipkart, Snapdeal, Ebay etc. also if you are running ads for your business promotion on popular Social Networking like Facebook , Twitter etc.
- GST Registration is required by vendors if they are registered under GST, this makes easier for them to make uniformity in business transitions.
- GST Registration is mandatory in case if you are doing interstate sales.
3. Udyog Aadhar Registration: Udyog Aadhar Registration is for MSME Enterprises, this registration will give recognition of MSME enterprise for your business.
4. Opening of Current Bank Account in the name of Business: Once you get any of the above registration certificate, you can contact to the Bank with which you wish to open your current account.
Benefits of Proprietorship firm:
- Fast and Cheaper Registration
- Less Legal Compliance
- Banking Transaction may be done in the name of the firm
- No Need to obtain different PAN for your business entity (Pan of the Proprietor shall be the business entity also)
- No need to file return of your income if your income does not exceed the maximum amount liable to tax (which is at present Rs. 250000/- and may be changed in every budget)
- You can also convert your proprietorship firm into Private Limited Company or LLP by becoming Shareholder of more than 50 percent of the Company.