A Sole proprietorship is an entity, which is owned, managed and controlled by a single owner. It is one of the most common form of business in India, used by small entrepreneurs operating in the unorganized sectors. In proprietorship, the owner is the sole decision-maker, responsible for all aspects of the business, including its debts and liabilities.
Proprietorships are usually small businesses that are easy and inexpensive to set up, as they do not require formal registration with the government or the creation of any legal documents. The owner can operate under their own name or choose a trade name for the business.
If you are looking to register your proprietorship in India, you can do so by following these steps:
Register for GST: If your business turnover exceeds a certain threshold, you will need to register for GST or you can voluntarily take GST Registration to start the business.
Register for MSME: To register the proprietorship, business owner can register in MSME (UDYAM Registration) which provides benefit like government schemes, collateral free loans, credit facilities, lower interest rates etc.
Register for Shop & Establishment Act: A proprietor can register his/her business under Shop & Establishment Act that is governed by State Law. It typically applies to Shops, Hotels, Restaurants, Cinemas and other similar businesses.
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