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GET STARTED AS A ONE-MAN BUSINESS in patna
Never let the businessman see down by giving your small business a shining name with sole proprietorship registration. It is extremely easy to start and run!
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Sole Proprietorship Registration, Eligibility and Process in patna
A sole proprietorship in patna is the most popular form of business structure for micro and small businesses operating in the unorganized sectors due to its simplicity, ease of information access, and nominal cost. Because of these factors, single owners are going for sole proprietorship registration in patna.
The sole owners are liable for all the business debts and have unlimited liability. So, their business and personal assets are at risk. getting a certificate of incorporation for sole Proprietorship is a good idea. However, obtaining a certificate of sole Proprietorship is generally unsuitable for medium and large-scale businesses due to the array of disadvantages like unlimited liability, no separate legal entity, non-transferability, and limited company life.
How to Register a Proprietorship Firm?
The government of patna has not prescribed any mechanism for registering sole proprietorship firms. Thus, the registration of a proprietorship can only be recognized through tax registrations that the Business must have as per the rules and regulations. These tax registrations may include GST Registration that must be obtained in the Proprietor's name to establish that the Proprietor is operating a business as a sole proprietorship.
Sole Proprietorship Firm v/s. Other Business EntitiesWhen you apply for sole Proprietorship online, your idea of a business entity differs from the rest. You are not looking for a robust structure, instead, you are looking for a free way to conduct a business. Simply put, you think about firm registration for Proprietorship because of the following differences it has from other business entities in patna:
6 No's Sole Proprietorship
No Regulatory Authority
Unlike most business registrations in patna, sole Proprietorship has no regulatory authority. There is nobody other than the standard income tax department watching over those with the Sole Proprietorship license – a term we use exceptionally loosely.
No Annual Compliance requirement
One that sets a Sole proprietorship is that there is no need for Annual Compliance unless you discount the yearly income tax returns. Many times people ask the question – Do I need to register for Sole Proprietorship in patna?
No Agreement to dictate your Business Activity
There is no memorandum of association for sole Proprietorship. Traditionally, a Memorandum of Association is the core document that states the purpose of your Business. While some legal document during proprietorship registration online states the Business, it is not as robust as a Memorandum of Association or an LLP Agreement.
No Proprietorship Certification requirement
A proprietorship firm registration certificate in patna does not exist. Furthermore, there is no existence of any Proprietorship register either. Then what is the proof of business ownership for sole Proprietorship? Without a proprietorship registration certificate, it can be challenging. Isn't it? Not really. All you need is a bank account in your company's name, which will prove that you have registered a proprietorship firm online.
No Restrictions on Proprietorship Firm's nomenclature
Unlike most business registrations in patna, sole Proprietorship has no regulatory authority. There is nobody other than the standard income tax department watching over those with the Sole Proprietorship license – a term we use exceptionally loosely. There is no concept of firm name registration. You can give any name to your sole Proprietorship – even your name would suffice. Because of so many lacks of restrictions, there are benefits to be had when you register a sole proprietorship in patna.
Benefits of Sole Proprietorship Firm Registration
After registration of a Proprietorship firm in patna, you gain access to the following perks:
Benefits of Sole Proprietorship Firm Registration
Drawbacks of Sole Proprietorship Registration in patna
Sole Proprietorship Drawbacks
If you want to incorporate a sole proprietorship, then it is also prudent to learn about its drawbacks.
Proprietor has Limited Capital
When registering a sole proprietorship firm, remember that you will be handling all your business expenses. As an individual, raising funds would be difficult. It limits the capital that a sole proprietorship firm can have access to.
Proprietor has Unlimited Liability
You are not different from the sole proprietorship and as your firm isn't separate from you, all your business liabilities fall on you. This factor of unlimited liability removes any sense of security from your business. You cannot afford mistakes – for they can mark the end of your business enterprise.
Proprietorship can't exist without its owner
Don't register a sole proprietorship if you want to set up your business as a legacy. Your business entity ceases to exist as soon as you leave the proprietorship firm.
Little scope for Business Expansion
Running this business depends on a single person – you – don't expect diversifications when it comes to doing business in patna.
No rebate on Income Tax Rates
Everything you earn will be taxed as personal tax. Furthermore, being a sole proprietorship firm, your business entity won't get many government benefits such as employee health insurance and more.
Resource Limitations in a Proprietorship
Because of the infrastructure, or lack thereof, there is a limit to the type of business you can do with your sole proprietorship firm. You cannot engage with complex enterprises; you must stay within your capabilities.
So you see, there are drawbacks to proprietorship company registration. But that doesn't digress from the fact that it is still worth it.
Eligibility Criteria for Sole Proprietorship Registration in patna
As the government doesn’t count Sole Proprietorship as a legal business entity, it has not given any discernible criteria to start one. Thus to get sole proprietorship, you need to adhere to all the following criteria:
Eligibility Criteria for Sole Proprietorship Registration in patna
Applicant must be a tax-paying citizen: Online sole proprietorship firm registration is only for entities running a local business. If you do, only then can you start a proprietorship firm. This business entity is deemed too free by the government of patna, and therefore, only those from patna can create this business entity.
Applicant must obtain the GST registration for its Business: If the annual turnover of your business is more than INR 40 Lakh, you must get the GST registration certificate in patna. It will act as proof for your Business.
Register a Bank Account in the Proprietorship's name: One criterion for sole proprietorship firm certification is to open a bank account in the name of your Proprietorship. It will help you conduct your business financial transactions properly.
Documents Required for Sole Proprietorship Registration in patna
The documents required for registering a proprietorship firm are the following:
- Aadhaar Card and PAN Card: Having a linked Aadhaar and PAN card is necessary, especially for filing an income tax return.
- Bank Account: To open a bank account you require an Aadhaar card, PAN card, identity proof and address proof.
- Office Address Proof: In the case of rented property, you require a rent agreement and NOC from a landlord. If the property is self-owned then requires an electricity bill or any other utility bill.
The following registrations are required for a sole proprietorship firm:
The documents required for registering a proprietorship firm are the following:
- UDYAM Registration: If the business has a Udyog Aadhaar Memorandum, then the proprietor must register for a new Udyam registration. This registration is a must to get recognition as a Micro, Small, or Medium Enterprise (MSME). Also, to get the benefits of schemes and support from the government.
- GST Registration: If your annual turnover is more than Rs. 40 lakhs (for goods) and Rs. 20 lakhs (for services) then you must apply for a GST number.
- Shop and Establishment Act License: This license is required to obtain as per the local laws. It is issued to the business as per the number of employees.
Process for Sole Proprietorship Registration in patna
Here is the answer to your question – How to start a Sole Proprietorship Firm in patna? The procedure for Sole Proprietorship registration in patna is as follows:
- Choose the name of the Business
- Check if the chosen business name is unique
- File the online application for GST registration
- Upload the required documents
- Obtain GST registration certification a few days after filing the application
- Set up a bank account in the name of the Sole Proprietorship
Note: There is no Sole proprietorship registration online. It is just a marketing term meant to lure. The truth is, to start a proprietorship, you need to physically pay a visit to the authorities and provide them with the documents.
Our Assistance in Sole Proprietorship Registration in patna
We at GLOBAL TAXMAN patna Pvt Ltd provide end-to-end solutions for Sole Proprietorship registration in patna. Our services include:- Collection of basic documents and information
- Application drafting
- Reviewing the application and making changes if needed
- Obtaining the GST registration certificate and delivering it to you.
- Helping you obtain a Shops and Establishment Registration certificate
GLOBAL TAXMAN INDIA Ltd is a leading legal consultancy firm providing comprehensive services relating to the incorporation of a sole proprietorship. Our expert team will give you the full-fledged assistance required for the seamless registration of a Sole Proprietorship Firm.
Frequently Asked Questions
A. Generally, there is no need to register a sole proprietorship and you can run your business from anywhere without registration.
A. A Sole Proprietorship is registered by opening a bank account in the firm's name. It can be done at any bank.
A. The compliances of proprietorship are filing income tax, GST return, and TDS return. All this must be filed through the ITR-3 or ITR-4.
A. Businesses related to retail trading activities such as household goods, electric goods, grocery selling, bakery, etc can come under the category of business.
