A sole proprietorship is an industry commodity in which a single person is solely responsible for raising capital, bearing risk, and managing the business. A sole proprietorship commences and terminates as per the proprietor’s decision or upon their death, or even may transform into a more intricate business structure if the business expands substantially. The business owner, proprietor, or trader uses their legal name. They may also use another name by registering it with their regional authority. This type of business is the most accessible and appropriate form to commence. However, it is common among small enterprises, freelancers, and self-employed individuals.
- As the best business consultant in the market, we will guide you through the following 5 simple steps to register an OPC:
Features Of Sole Proprietorship Registration Online
One-Man Ownership
Only one man can be the enterprise’s owner in a proprietorship.
No-Separate Legal Entity
There has no separate legal entity between the proprietor and the business entity. Hence, they both are the same.
Unlimited Liability
Unlimited liability means that if the enterprise sustains losses, the proprietor’s private property can also fulfil business obligations to external parties.
Fewer Formalities
A proprietorship business can be established with minimal legal formalities Some companies could start simply after “obtaining the necessary manufacturing license and permits.”
Separation between ownership & management
Management rests with the proprietor in the proprietorships. Hence, the proprietor is a manager.
All profits or losses belong to the proprietor
As the sole owner of the enterprise, the proprietor relishes all the profits earned and endures the full brunt of all losses sustained by the enterprise.
Features Of Sole Proprietorship Registration Online
One-Man Ownership
Only one man can be the enterprise’s owner in a proprietorship.
No-Separate Legal Entity
There has no separate legal entity between the proprietor and the business entity. Hence, they both are the same.
Unlimited Liability
Unlimited liability means that if the enterprise sustains losses, the proprietor’s private property can also fulfil business obligations to external parties.
Fewer Formalities
A proprietorship business can be established with minimal legal formalities Some companies could start simply after “obtaining the necessary manufacturing license and permits.”
Separation between ownership & management
Management rests with the proprietor in the proprietorships. Hence, the proprietor is a manager.
All profits or losses belong to the proprietor
As the sole owner of the enterprise, the proprietor relishes all the profits earned and endures the full brunt of all losses sustained by the enterprise.
Sole Proprietor Company Registration Procedure
These are all the necessary steps for pvt ltd company registration in India
Obtain an Aadhar Card
Aadhar number is a prerequisite for legalizing any corporation in India. The applicant can approach the most immediate Aadhar, Seva Kendra or E-Mitra to ensure the Aadhar number is legitimate. Also, you can only file an IT return .if the aadhar card of an individual is linked with the PAN Card of such individual.
Apply for PAN Cards
A dedicated government portal allows an individual to apply for PAN at a negligible fee. After scrutinizing at NSDL for verification, you can submit the PAN application via Aadhar e-KYC. The standard documents needed to apply for PAN include an applicant photograph, ID proof, & address proof. After the successful verification, the administration grants the PAN number to the applicant within a week.
Open a Company’s Bank Account
After ensuring the PAN and Aadhar Number, you can reach out to any designated bank to open a current account. Standard documents for opening an account include PAN, Aadhar Number, GST registration, and address & identification proof. Although, the applicant can equip a copy of the No Objection Certificate (NOC) or rent agreement for address proof. Similarly, they can also stimulate utility bills to serve such a purpose.
Secure the Shop and Establishment Act License
A shop and Establishment license is a legitimate oppression for a commercial establishment that hawks goods or services to the consumer.
Register under the GST
GST registration applies to all business forms, including online businesses whose annual turnover exceeds the prescribed threshold limit. Companies with yearly turnover exceeding the prescribed limit must secure registration.
Documents required to register sole proprietorship in India
Benefits Of Sole Proprietorship Registration Online
Checklist For Sole Proprietorship Registration Online
FAQ's
Few doubts important to be resolved quickly
No, there is no need for physical presence in every process; as such, the involvement with the private limited company is now online. You only have to deliver scanned documents and forms filed electronically on MCA Portal.
Digital Signature Certificate is a tool for signing all documents electronically. As every process of a private limited company accomplishes online, getting DSC is an essential step in the process.
Generally, there are no specific fees for forming a sole proprietorship enterprise. Instead, the cost depends on other registration you would apply for, such as MSME registration costs you Rs. 1,000, and GST registration, costs you Rs. 2,000.
Generally, it does not mandate any registration for sole proprietorship registration in India. Thus, the essential registrations needed to register sole proprietorship are as follows-
- Shops and Establishment Act, registration certificate of the state where the business locates.
- GST registration.
- MSME registration.
A Memorandum of Association (MOA) is a legal document that every company must file during registration. It consists of the company’s basic details with its purpose of incorporation.
On the other hand, an Articles of Association (AOA) is a document that applies the guidelines on which the company will operate.
A One Person Company (OPC) can have more than one director but not more than one shareholder. The minimum number of directors to register sole proprietorship company is one, while the maximum is 15.
Any individual or entity establishing their own e-commerce business must have a GST Registration. If the annual turnover of your business strikes the threshold limit of Rs.40 lakh, then you must get a GST registration. However, registered companies in the particular category must acquire GST registration if their threshold limit strikes over Rs.20 lakh. Any e-commerce merchant on an e-commerce portal must have a GST registration, irrespective of their annual turnover.
Yes, a bank account must open via sole proprietor under the sole proprietorship company’s name. They must open a current account and carry out all the account transactions of a sole proprietorship firm.
