How to register Sole proprietorship firm in india

How to Register Sole Proprietorship Firm

Sole Proprietorship Registration is best business formation to doing the business in India. It's a very simple procedure with less compliance and costing & fee. It's a very popular business formation in India when you starting a new business for the testing purpose.

Sole Proprietorship Need Minimum 1 Person for the Registration. The person called sole proprietor. a sole proprietor is the owner of the business. Sole Proprietor can be hired also someone to running their business as the employee but can'nt authorised signatory for the legal documents signing purpose.

Sole Proprietorship Firm consist a lot of things required different type of the registration like GST Registration | MSME Registration | Chartered Accountant Certification | Gumasta License or Shop Act license etc so as per government of India rules there is no proper business registration for sole proprietorship firm. Let's understand below in the simplified manner -

Main Objective - Opening a current bank account on the Firm Name or Business Name which is required the minimum 2 license or any 2 legal document on the Firm Name as per the RBI Compliance -

As we divide the all the license in mainly 2 categories -


Local License Registration as Sole Propreitorship Firm

Local license are issued by the local or area govt or central government of the same. In the local license there are lot of the type of the license are included like shop act license or MSME Registration or CA Certification or Income Tax Return etc. so you have to required only the minimum 2 anyone below certification or license to open a bank account -

a) MSME Registration - MSME Registration refer to small and medium business enterprise. From the Sept 2015 government simplified the MSME Registration by filings of the online application with the documents. MSME Department are authorised to prepare the guide license for the small business and provide them subsidy or loan like pradham mudra bank loan etc.

b) Chartered Accountant Certification - CA Certification is issued by the only the authorised practicing chartered account which have proper registered firm with the ICAI and Membership number. CA just verify the all documents of the propreitor and provide a certification to open a current bank account.

c) Shop act License or Gumasta License - Shop act license or gumasta license are issued by the municipal party in the same area. its is requried the commercial shop or office where you want to start the business. Its issued on the number of the employees and on renewal basis for the same.

d) Business ITR - business income tax returns are consist the Form ITR 4 or ITR 4s with business name and proper business income which is required by only some private banks to open a current bank account.


Tax Registration i.e GST Registration Online

New or Fresh GST Registration has been started from 25th june 2017. So Now you have to required the GST Registration instead of the VAT or Service tax in the following conditions -

1. if you are selling goods and services within state and have expected turnover more than 20 lakh rupees in a year.
( For Ex - Providing the goods and services in Delhi and between 01.04.2017 to 31.03.2018 your turnover cross more than 20 lakh rupees then its required the GST Number.

2. if you are selling goods and service outside state & even have turnover less than 20 lakh rupees in a year.
( For ex - providing the goods and service in delhi , jaipur,mumbai, bangalore and have turnover less than 20 lakh in 16-17 but still you have to required the GST Registration due to inter state supply.

3. if you are doing ecommerce business online or any service based business online then its required the GST Registration.

4. if you are deal as trader or manufacturer and your suppliers are registered under the GSTIN already then they charge the GST on your purchase & if you need the input credit or refund then you have to required the GSTIN Number.

​5. Ecommerce Aggregators and Operators are required the GSTIN Number from starting.

so in above all the 5 conditions you have to required the new GST Registration and have to open a current bank account for the same.

Documents Required for Firm Registration

  1. PAN Card of the sole Proprietor.
  2. ID Proof and Address Proof of the sole Proprietor as Adhar Card, Driving License or passport etc.
  3. Rent Agreement, No Objection Certification or Electricity bills of the property where you want to register the business.
  4. if Proprietor has owned property the it needs sales deed copy or electricity bills.
  5. Bank Statement copy or cancelled cheque copy.
  6. Passport Size Photograph

Procedure for Register Sole Proprietorship Firm

  1. Prepare documents required for sole Proprietorship Registration.
  2. Apply for MSME + CA Certification or GST Registration as per your business need.
  3. Get Certification from the Government after the approval.
  4. Apply for a current bank account in any bank with your complete documentation.

How to Regsiter Proprietorship Firm Online ?

We at MyOnlineCA build a automation platform to get register your proprietorship firm at the low cost with paperless work.

  • Just Fill up below request form with the basic details
  • Our Smart system automatically redirect to choose the best legal certification as per your business need or conditions.
  • Make the Payment via any bank debit card/credit card/net banking/UPI/Wallets via secure way.
  • Get the confirmation email with our dedicated team member details Instantly on your email to start your work.
  • Get the certification as per our timeline in the email & start your business easily.