This article solves the problem of how to register proprietorship firms in Maharashtra. Read the blog to know more.
The simplest type of business to operate in India is a sole proprietorship because it is not subject to any particular laws. The requirements for sole proprietorships are straightforward and basic. A sole proprietorship is a company run by one person. One individual is in charge of managing and making decisions for the company.
But what exactly does sole proprietorship firm mean? Read below.
Registration Of Sole Proprietorship Firms In Maharashtra
A sole proprietorship is the most straightforward business structure to run in India because it is not governed by any specific legislation. The prerequisites for sole proprietorships are simple and fundamental. A sole proprietorship is a business that has just one owner. The company is managed and decisions are made by a single person.
Documents required for a sole proprietorship to register:
- PAN card, bank account, Aadhar card, and proof of a registered office
- Even though a business with just one owner is not required to obtain any special licences, it is nevertheless essential for him to do so in order for his operation to be successful
- SME Registration, Shop and Establishment Act Licensing, and GST Registration.
Let’s read in-depth about them.
Aadhar Card
In India, all registrations require a valid Aadhar number. Additionally, in order to file an income tax return, the PAN card and Aadhar number must be connected. Contact your neighbourhood E-Mitra or Aadhar Seva Kendra if you don’t yet have an Aadhar number. About 15 to 20 days after the application is received, an actual copy of the Aadhar card is given to the registered address.
PAN Card
You will be unable to file your income tax return until you have a PAN. If you don’t already have a PAN figure, you should apply for one as soon as feasible. A PAN card application online costs approximately ₹110. To apply, you must have a scanned copy of your identification, photo, and address paperwork.
The form may be filed online after Aadhar e-KYC verification. Following submission, the PAN card application is checked by NSDL to make sure all the information is accurate. If so, NSDL provides a PAN number within 7-8 days. Additionally, the PAN card is delivered in hard copy to the registered location in 15 to 20 days.
Bank Account
You can create an account at any bank after obtaining your PAN and Aadhar number. In addition to your Aadhar number and PAN, it would be helpful if you could provide documentation of your identity and address. To open a current account, you must show the bank personnel your documents for GST registration.
Proof Of Registered Office
- If the property is rented, a rent agreement and a landlord’s NOC are required
- If the property is self-owned, a utility bill, a sale deed, or an electricity bill.
Required Registrations For A Sole Proprietorship
A few registrations are also essential to prove the firm’s presence in addition to the documents mentioned above:
Becoming An SME
You may launch your business as a Small and Medium Enterprise under the MSME Act (SME). Although it is not necessary, registering as an SME offers several benefits, especially when seeking a business loan. The application can be done digitally. The government oversees a number of programmes that make credit available to SMEs at a lower interest rate.
Act-On Stores And Establishments Permit
A Shops and Establishment Act License is needed, per local laws. It is distributed based on the kind of business and the number of employees. In general, all sole proprietors who operate a shop or other business must have this license.
Registering For GST
If your annual revenue exceeds ₹40 lakhs, you can register for GST. Additionally, if you must obtain a GST number if you are conducting an online business (selling on Flipkart, Amazon, etc.), you need the following paperwork to register for GST:
- Proof of business location, such as an electricity bill or a lease agreement;
- A copy of a bank statement; (first page for verifying bank account number, address and IFSC code).
The GST portal makes it simple to register for GST. Typically, the GST number is obtained 3–4 days after the application is submitted.
A Few FAQs
Whose name should the PAN card for a sole proprietorship firm be issued in?
The proprietor's name will appear on the PAN card for the proprietorship business. The sole proprietorship firm does not receive a company PAN card since it does not have a separate legal existence from a corporation. A solitary proprietorship business is associated with the owner or proprietor. Therefore, the owner/proprietor of the single proprietorship business may utilise their PAN.
Would the sole proprietorship firm's designation be on the bank account?
Yes, the sole owner must create a bank account in the name of their sole proprietorship business. A sole proprietor must establish a current account and conduct all transactions related to their sole proprietorship firm through that account.
Conclusion
If you wish to register your sole proprietorship company in Maharashtra, you can get in touch with Vakilsearch. Our legal experts will make it easy for you to register your firm in the most seamless manner.
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