Whenever an Individual does a business in India with his own, he is running his own firm i.e. Proprietorship Firm. Legally in India registration of Proprietorship firm is not mandatory, you can run proprietorship firm business without any Registration, but in this new era of KYC and certain rules and regulation for Banks, Banks do not process for Current Bank Account in the Name of Firm unless you have valid Firm Registration Certificate. Further if you are doing online business through e commerce marketplace you are mandatory required to have GST Registration for your Business.
List of Registration you can obtain for Proprietorship firm in India:-
- Shop Act Registration or Gumasta Licence : Registration under Shop and Commercial Establishment Act Commonly known as “Shop Act Registration” Most of the Banks open Current Bank Account for this Registration
- GST Registration: As GST Registration is Mandatory Only if Gross Sales Exceeds Rs. 20 Lakh in any Financial Year , but you can voluntary take GST Registration,
- GST Registration is Mandatory if you are selling products on E commerce Marketplace Websites like : Amazon, Flipkart, Snapdeal, Ebay, Esty etc.. also if you are running ads for your business promotion on popular Social Networking like Facebook , Twitter etc.
- GST Registration is required by vendors if they are registered under GST , this makes easier for them to make uniformity in business transitions.
- Udyog Aadhar Registration: Udyog Aadhar Registration is for MSME Enterprises, this registration will give recognition of MSME enterprise for your business, if you are running proprietorship firm business and want to have Single Registration this is great deal to have in pocket. You can apply for MSME Registration with Fastlegal Team Members.
Opening of Current Bank Account in the name of Business :
Once you get any of the above registration certificate , you can contact to the Bank with which you wish to open your current account.
Its all Done: Your Business is registered business entity now. you can now do all the banking transactions in the name of your firm.
Benefits of Proprietorship firm:
- Fast and Cheaper Registration
- Less Legal Compliance
- Banking Transaction may be done in the name of the firm
- No Need to obtain different PAN for your business entity (Pan of the Proprietor shall be the business entity also)
- No need to file return of your income if your income does not exceed the maximum amount liable to tax (which is at present Rs. 250000/- and may be changed in every budget)
- You can keep any name of your Firm, But it is advisable to check Trademark Registration , if someone else has taken trademark than it is not advisable to take that name as Firm Name.
- You can also convert your proprietorship firm into Private Limited Company or LLP by becoming Shareholder of more than 50 percent of the Company.
Looking for Registration of Proprietorship Firm Online?
Just Submit your request in below Form and Fastlegal Team Members will contact you shortly for getting your Firm Registered as per your business needs, you just need to share Required documents and information Via E-mail.