A Sole proprietorship firm is a business which is owned, managed and controlled by a single person. It is one of the most common forms of business in India, utilized by small businesses operating in the unorganized sectors. Proprietorship firms are very easy to start and have minimum regulatory compliance requirement to establish. Due to no difference identity of the sole proprietorship and owner, there is not a very formal or extensive procedure for its registration.To register a Sole Proprietorship, you need to produce certain documents.
Following are the necessary documents:-
- A copy of PAN card of the proprietor:- The business and the Proprietor are seen as the same. Thus, the proprietor can use their PAN card for opening bank accounts, obtaining licenses/ registrations/ certificates in the name of the sole proprietorship and filing income tax return for the sole proprietorship.
- A copy of Aadhaar card/election I-card:- Id proof of the proprietor is mandatory.
- Address of office:-
- Rented Property: a) Rent agreement and NOC from a landlord.
- Self-owned Property: Electricity bill or any other address proof.
- Nature of business:-
- Service based business:- Business providing services to consumers online or offline. Such businesses need the following two documents to open a current account:-
- Service tax certification.
- Chartered Accountant Certification regarding nature of business. (Required by some private banks)
- Product manufacturing/ Sales business:- Businesses selling products to consumers online or offline. Businesses selling VAT applicable products fall in this category. They need the following documents:
- Shop and Establishment License.
- VAT/ Sales Tax/ TIN registration.
5. Bank Proof:-
- Cancelled cheque.
- Bank statement, not more than three months old.
In addition to the above, the sole proprietor can use other registrations like MSME registration or ESI(Employee State Insurance) registration or professional to establish the existence of the business.
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