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.

What is Sole Proprietorship in India?

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.

Who is a Sole Proprietor?

A proprietor is the owner of the Sole Proprietorship business. It is not a corporate or legal entity. The proprietor and the Proprietorship are the same legal entity.

The PAN and other documents of the proprietor are the basis for obtaining all the registration and licenses. The proprietor is held personally liable in case of any liabilities in a business.

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. Further, if the business name is unique, then it is better to register a trademark.

Business licenses.

Irrespective of the type of entity, business licenses are a must for any permit. For any applicant, before registering a Proprietorship in India, it is necessary to understand the regulatory framework which surrounds the activity he wishes to undertakes and obtain relevant licenses. From the respective Local, state, and Central Government authorities.

Tax Registration.

It is necessary to obtain Tax registration from the relevant Tax authorities, which are based on the type of activity the Proprietors perform.

This includes GST registration, Professional tax registration, and ESI/PF registration.

Trademrk registration.

as there is no registrar for Proprietorship in India. Proprietorship can usually be operated under any name unless the name doesn’t conflict with any trademark registration and other rules and regulations.

If a person is investing enough time and money in the Proprietorship or if the business and wants the goods and services offered by him to be identified exclusively, it is always recommended to get a Trademark registration.

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

If you are interested in participating in the same, do let me know.

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