SOLE PROPRIETORSHIP REGISTRATION ONLINE IN ADILABAD

SOLE PROPRIETORSHIP REGISTRATION SERVICES OVERVIEW IN ADILABAD

Sole Proprietorship means a business entity formed by a single person and which is named on that person only. The same person is the owner of the business, manages it, and controls all the operations involved. It is very easy to form a sole proprietorship by any person who wants to start a business without going through various legal formalities. The sole proprietor should be a Citizen and Resident of India. The person who runs the business is known as the Sole Proprietor. Here Sole Proprietor is the Owner, Director, Shareholder of the Proposed Entity. The process of registering a sole proprietorship is digital which can be accomplished with the help of an expert.

Benefits of registering Sole Proprietorship:

1. The easiest form of business: We all come across various shops in our locality carrying out small business operations. All these are sole proprietorships. It is very easy to form this business. They don't involve any complexities and can be handled by a single person in a comfortable manner.

2. Easy to start: These businesses do not require mandatory registrations under any law.  Registration for only those licenses is required that are specific to the nature of business. So any person can easily start the business with a trading name of his or her choice only it should not clash with any brand name. It also does not require approval from the registry.  

3. Less investment: Sole proprietorship can be started with a minimum amount of capital at the initial phase. This turns out to be an exciting opportunity for someone with low funds and wants to set up a business.

4. No sharing of profits earned: Sole proprietor is the person who owns and manages the business on its own. So the profits earned will also be enjoyed by him alone.

5. Less legal compliances: Sole Proprietorship is not governed by any specific law so there are fewer legal compliances. They don't have a predefined Certificate of Incorporation or Registration Certificate. So the compliances depend upon registrations or licenses taken by a particular sole proprietorship. Eg. If sole proprietorship registers itself for GST law, then it will have to comply with the GST return filing etc. there is no requirement of uploading the Annual report or other reports on the MCA website.

6. Secrecy of information: In a sole proprietorship, the information is not made public.unlike other companies, like Limited Liability Partnership, where financial statements, audit reports are made public for users through the MCA website. The financial reports remain in private hands. 

7. Self-decision making: Since Sole Proprietorship is managed and controlled by a single person so there will be no conflict of ideas and decisions.

8. No specific audit requirement: It is not mandatory for a sole proprietorship to get its accounts audited for every financial year. The audit will depend upon the nature of the business and the threshold turnover limits specified for the conduct of the audit. Tax Audit is required if turnover/ sales exceed Rs.1 CR. When it comes to professional services an audit is required if receipts exceed Rs. 50 lakh. GST audit is required if the turnover exceeds Rs.2 crores.

9. Lesser Income Tax: Since Sole Proprietorship involves only a sole proprietor, hence no separate tax is required to be paid by it. They both are considered the same for the purpose of calculation of tax liability. The Sole Proprietor is required to file his normal return and show the profits earned in the business in that return itself. 

Few Registrations are required for the purpose of the Proposed firm:

1. SME Registration:

Individuals require registering as an SME (Small and Medium Enterprise) as per the provisions of the MSME Act and for which an online application needs to be submitted. However, it is not compulsory but is beneficial for the company but during the time of loan requirement at a low-interest rate. The government has launched various schemes for the improvisation of SMEs registered under MSME Act. This registration is applicable when business is only in one state and the annual turnover is less than 20 lakhs.  

2. Shop and Establishment Registration:

Individuals must have a shop and establishment license as per the local laws. This license is issued by municipal parties based on the number of workers/ employees in the firm. When the turnover of the underlying business is more than Rs. 20 Lakhs, then this registration is applicable.

3. Registration under GST: 

Now GST registration is mandatory to carry on business activities in Adilabad. For online business also you require a GST number. This registration is applicable when the annual turnover is more than 40 lakhs and 20 lakhs for businesses operating in the North Eastern States and also applicable for the business running online. GST registration can be accomplished in 5 working days with the following documents:

• PAN Card of the proprietor

• Aadhaar Card of the proprietor

• Passport size photograph of the proprietor

• Office proof

• Bank Statement copy with the bank account number, IFSC code, and address mentioned in it.

The above registration can be made by :

• Filling an Application Form.

• Submitting a document.

• Obtaining a Registration Certificate.