PROPRIETORSHIP

Proprietorship is a popular type of unregistered business entity owned, managed, and controlled by one person. Most of the micro and small businesses operating in the unorganized sectors prefer registering a Proprietorship. 

Sole Proprietorship is simple to start and has very few regulatory compliance requirements for conducting the operation. Proprietorship registration is ideal for entrepreneurs who are getting into the business for small businesses with few clients.

HOW TO START A PROPRIETORSHIP IN INDIA?

Registering a Proprietorship firm in India requires no formalities or registration. It is necessary to obtain a business license as required by the state/central government.

CHECKLIST

A certificate/license issued by Municipal authorities under the Shop & Establishment Act.
The license issued by Registering authorities like the Certificate of Practice is issued by the Institute of Chartered Accountants of India.
The registration/licensing document is issued in the name of the proprietary concern by the Central Government or the State Government Authority/ Department, etc,
The banks may also accept the IEC (Importer Exporter Code) issued to the proprietary concern by the office of the DGFT as an identity document for opening of the bank account etc,
Complete Income Tax return (not just the acknowledgement) in the name of the sole proprietor where the firm’s income is reflected, duly authenticated and acknowledged by the Income Tax Authorities,
The utility bills such as electricity, water, and the landline telephone bills in the name of the proprietary concern,
Issue of GST Registration/Certificate.

DOCUMENTS REQUIRED FOR PROPRIETORSHIP REGISTRATION

To start a Sole Proprietorship, the following documents are required

Address and identity proof
PAN card, KYC documents and
Rental agreement or sale deed (in case of Shops & Establishment Act Registration).
What Are The Documents Required For Opening A Current Account?

To open a current account, the following documents are required;

Proof of the existence of your business
Shops & Establishments Act Registration
PAN card
Address and Identity proof