This particular entity might be the simplest one in India, but it definitely has its perks. Know about the documents needed to get this form of business entity. For more information, you can also contact Registrationwala.
When it comes to business entities, it is always good to start with the simplest ones. Sole Proprietorship Company is one such form of simple company. Relying on the tenet where:
“The business is not separated from the owner”
You can already realize that a Sole Proprietorship Company is not a legal entity. To put in the simplest terms, it means that the person who owns the business is responsible for the debts of the business.
Sole Proprietorship Company Documents Required
Considering the Sole proprietorship is not a legal entity, there is some levity to be seen when it comes to the Documents required to register a Sole Proprietorship Company. However, it would still come in some form of law. Therefore, following are the documents that are necessary for this endeavour:
- Aadhar Card:
If you go as far as past 5 years, you can easily understand that Aadhar card has garnered a lot more importance than it used to. Nowadays, linking the Aadhar card with the PAN card has also become a mandatory measure. Therefore, if you haven’t yet, you should apply for the Aadhar card.
- PAN card:
The only way to file the income tax return is through the PAN card. Therefore, applying for this document should be at the top of your list of priorities. You can apply for it either offline or online. The subsequent documents that you will need to get this document are: a scanned photograph, ID Proof and proof of address.
- Bank Account information:
For more than obvious reasons, you need to have access to a bank account before you apply for Sole Proprietorship Registration. With the Aadhar ad PAN card, you can walk into any bank and get your account started. However, if you are opening a current account, you would also need GST Registration certificate as well.
- SME Registration
While not an essential document, the SME (Small and Medium Enterprises) certification under the MSME act can be especially helpful when you aspire to run smooth operations for your company. For example, if you seek loan from a bank, they will be more than inclined to provide you with the same if you have the SME Registration.
- Ship and Establishment Act License
Much like the SME, this one is not important. However, there are regions in India where this is considered to one of the most important documents for Sole Proprietorship registration.The one that issue this document is the Municipal Party. It is provided to you on the basis of number of employees that you have.
- GST Registration:
If you annual Turnover is more than INR 20 lakhs, then you need to get yourself a GST Registration. The documents needed for this purpose are as follows:
- PAN Card
- Aadhar Card
- Photo ID
- Bank Statement
This registration can be easily obtained through the online portal.
These are the documents that are deemed necessary for Sole Proprietorship Registration. These documents provide a semblance of legality to your business entity and hold you accountable at the time of peril.
With Sole Proprietorship Registration, you will also get access to several benefits. To that end, grinding and gathering these documents is worth it.