In India, there is no any separate law made for sole proprietorship business registration, however, you can start your business without any registration, but in the opening of bank accounts, a banker can demand following registration documents as per nature of business:
- GST Registration
- MSME/Udyam Registration
- PAN/TAN
1. PAN CARD
2. PHOTOGRAPH
- Passport Size
3. ID PROOF
- Adhaar Card
- Voter ID
- Passport
- Driving License
4. ADDRESS PROOF
- Bank Statement
- Electricity Bill
OWNED:
1. Sale deed of the Property
2. NOC from the owner (Draft Copy will be shared)
3. Latest Electricity Bill/Telephone Bill/Gas Bill
TAKEN ON RENT:
1. Rent Agreement
2. NOC from the owner (Draft Copy will provide draft copy)
3. Latest Electricity Bill/Telephone Bill/Gas Bill
Just open a current account and a registration and you can start operating
In Proprietorship business is fully controlled by proprietor and it is good at the initial stage to manage business singly. It is based on low investments and low turnover.
Insole traders, the capital is employed by the owner himself from his personal resources. Due to this, it is riskier.
The liability of the proprietor for the debts of the business is unlimited because the personal property of the proprietor is also attached to the business.
Sole traders are a one-man show. The sole trader provides management to the business. However, it is better at low-level business.
Sole traders are not governed by any special legislation and because of that applicability of various laws are depended upon personal status of the proprietor.
In a sole proprietorship, the income tax rate will be charged according to slab rate under Income Tax Act, 1964 but after the certain turnover audit is also required.
The surplus arising in the business of the sole trader entirely belongs to him and similarly, all the business losses and risk are to be borne by him alone. Income tax is also treated as personal expenses. As per finance act, 2019 Total Income of proprietorship business is exempt up 5 lakhs in a certain case.