What is a proprietorship firm and how to register a proprietorship firm
A sole proprietorshipfirm is an unregistered firm. It is one of the most preferred business ownership. A single person is responsible for the assets, Liabilities and the affairs of the business.
A sole proprietor needs to get his accounts audited as per section 44AB if his gross receipts for a period of one year exceed Rs 1 crore. Proprietorship firms are very easy to start and have a minimum regulatory requirement.
Registration of proprietorship firm
There is no such rule that is provided by the Government of India in regards to the proprietorship firm registration. The registration and operation of the proprietorship firm are not governed by the central or state authority. The existence of a proprietorship firm is proved through tax registrations and the business license.
Since registering a proprietorship firm does not involve any procedure, any person can use the same name of the business. If a proprietor wants to protect the name of his business, a trademark registration can be obtained for the business name.
Common registrations for a proprietorship firm
A proprietorship firm is identified only through a few registrations and licenses. The following are few of the common registrations
MSME Registration – MSME registration can be obtained in the name of the proprietorship firm to establish that the firm is registered under the Ministry of Micro, Small and Medium Enterprises.
TAN registration – TAN registration must be obtained by the owner of a proprietorship firm from the Income Tax Department if in case the owner or proprietor is making salary payments wherein TDS deduction is required.
GST registration – It is mandatory to obtain GST registration if the goods and services that are sold at the proprietorship firm cross the GST turnover limit for registration. GST is required for service providers whose annual revenue is more than 20 lakh and in case of traders, the annual of more than 40 lakh.
Import Export Code – If incase the proprietorship firm is undertaking the import or export of goods in India, the firm needs to obtain an Import Export Code or an IE code by the DGFT in the name of the business.
FSSAI Registration – If in case the firm is involved in the selling or handling of food products, FSSAI registration must be obtained in the name of the proprietorship business from the Food Safety and Standard Authority of India.
Shops & establishment- registration is mandatory for all business entities. It not only includes shops and commercial establishments but also, work from home jobs.
The average time taken for the registration of a proprietorship firm is 3 to 5 working days. However, this is subject to the processing time taken by the government and the submission of documents by the proprietor.
If you’re looking for sole proprietorship registration, get in touch with our staff. Call us at +91-9900328729, +91-80-40909797 to find out more about the registration process.