Sole Proprietorship Firm Registration in Delhi
Nowadays, it is easy to register any kind of company online from the official site. A sole proprietor can register his sole proprietorship firm easily from the online site. The process of registering a sole proprietorship firm is very simple and quick. You have to just submit the required documents to register a sole proprietorship firm.
In this blog, we will discuss the steps involved in Sole Proprietorship Firm Registration in Delhi, its advantages, documents required for registration, and some other details.
Who is a Sole Proprietor?
A sole proprietor is the owner of an unincorporated business run by him. He acts as an owner, director, and shareholder of the company. A sole proprietorship must pay personal income tax on all the business profits.
How to Check Proprietorship Status?
The Ministry of Corporate Affairs is the main authority that looks after the registration of different companies in India. It has its own website with all the details of Indian companies. If you want to register a Sole Proprietorship firm, it is necessary to register with the official site of MCA.
When you visit the online portal of MCA, it includes all the information on all types of businesses. Information includes the date of formation of the business, business license serial number, fees, and so on.
You have to take some easy steps to check the sole proprietorship firm’s status on the official site of MCA. The steps are given as under:
- The first step is to open any search engine from your laptop or smart device. A good internet connection is required to visit the official site.
- Then you have to go to the official webpage of MCA.
- The next step is to go to the MCA services tab and click on the View Business option from the menu.
- Now, you have to click on the Search button by typing the three letters of the firm name.
- You will view the full list of business names with the letters filed. Then you have to click on the Corporate Identification Number or Company Firm Name page.
- If you have a Corporate Identification Number (CIN), enter it in the column of Business CIN.
- After entering the CIN of your business, you have to submit the application form.
- Finally, you will get all the details of your business on your computer screen.
Advantages of Sole Proprietorship Registration in Delhi
Today, many individuals go for the option of sole proprietorship firm registration to get many benefits. There are many Advantages of Proprietorship firm registration such as:
Easy to Operate
It is simpler to operate a sole proprietorship than other kinds of businesses and companies. The businessman does not need to take approval to make important decisions for the company and can do it alone.
Maintains Privacy in the Firm
Public listed companies are governed by Government. But sole proprietorship firm is managed by a sole trader. There is a high level of privacy in sole proprietorship firms as compared to other forms of companies. No details of the sole proprietorship firm are given or published on the official site of MCA.
Simple to Form
Forming and registering a sole proprietorship is the easiest procedure for individuals who want to start their own businesses. There is no lengthy process to register a sole proprietorship firm.
All you need to do is to pay certain fees to register your business name. After paying these fees, you will get all the necessary licenses and permits according to the type of industry. Registering a sole proprietorship firm is very easy and quick.
Complete Control of the Company
As it is a sole proprietorship firm, you have full control of your business. No other person or partner can control your business affairs. It makes it easy for a sole trader to make important decisions about the business without taking the approval of shareholders and partners.
Less Compliance work
Only one person is required to form a sole proprietorship firm. There are very formalities and compliances to registering a sole proprietorship firm by submitting a few documents. It is affordable to register a sole proprietorship firm by businessmen who have low capital. A sole proprietorship firm can be started with any amount of capital.
No Auditing or Other Filing Compliances
One of the major benefits of starting a sole proprietorship firm is that you do not need to file accounts or get the accounts audited every year. It is different from public companies wherein companies must get their accounts audited every year.
Registration of Sole Proprietorship in Delhi
It is very simple and quick to register a sole proprietorship firm today on the official site. Some easy steps for registration of a sole proprietorship firm are:
- The first step is to apply for a PAN card.
- You will get a PAN card within a few days after your application. After getting a PAN card, you have to find a name for your business.
- Now, you have to open a bank account in the name of your sole proprietorship firm. All your business transactions will be carried out through this bank account.
- Before registering a sole proprietorship firm, you have to obtain some necessary registrations to start a business such as:
- Sole trader has to get a Registration certificate under the Shops and Establishment Act of the state in which you have your business.
- Sole proprietor must also register for GST if his/her business turnover is more than INR 20 lakhs.
- Sole traders must also get their firm registered under MSME Act as a Small and Medium Enterprise. This registration is not compulsory but gives many benefits to the business.
Documents Required for Sole Proprietorship in Delhi
You will have to submit some necessary documents to start a sole proprietorship firm. The Documents Required for Sole Proprietorship are:
- Aadhar Card
- Bank Account
- PAN card
- Registered office proof and address proof
- Registration under the Shop and Establishment Act of the state in which your business is located.
- GST Registration Number if business turnover is more than INR 20 lakhs.
- Rent agreement or NOC from a landlord
- Electricity bills or other utility bills to show your address proof
Book Proprietorship Firm Registration Services Online
Nowadays, you can hire professionals to do Sole Proprietorship Registration in India. These professionals will collect all the necessary documents and verify every step. They will also notify you through emails and SMS and give you the details of the procedure.
You can check the online status of the company’s registration on the official site of MCA. This site also presents other details of your business such as the name of the firm, license number, and so on.