Procedure for Sole Proprietorship Registration in India
In India, a Sole Proprietorship is an easy way to commence a business. There is no legal difference between the business & the owner in the case of Sole Proprietorship. So, there are 3 different ways to register a Sole Proprietorship in India
Registering under the Shops & Establishments Act
Registering through GST Registration
Getting Udyam or Udyog Aadhar under the Ministry of MSME.
Registering under the Shops & Establishments Act
The Shop & Establishment Act allows the Registration of Sole Proprietorship for shops & establishments in India. Under the prescribed law, cafeterias, restaurants, theatres, hotels, factories, commercial facilities, or public entertainment locations aren’t considered shops. Following is the list of premises that qualify as a shop
Following is the list of premises that qualify as a shop
ulArrowIf the products are sold either retail, wholesale
ulArrowServices are offered to the customer;
ulArrowThis comprises offices, sheds, workplaces, or warehouses used in connection with such business whether on the same premises/elsewhere.
Following is the general process of Registration
ulArrowThe Labour Department of each state is liable for registering & processing Establishment Acts
ulArrowThe registration process is completely handled by an inspector in charge
ulArrowUsually, the District Labour Officer takes charge as the inspector in charge
ulArrowThe inspector will provide a form to the owner
The following details regarding the establishment & employer should be included
Owner Name
Name of the Establishment
Business Address
No. of Employees
The date that the business opened for business
Business Category
The owner of the business should send the application & the registration fees to the inspector in charge within 30 days of establishment
The verification process by the inspector takes some days
The owner of the business will get the Registration Certificate if the Registration fulfills all the requirements
Registering through GST Registration
If you are involved in the exchange of goods & services, you can do Sole Proprietorship Registration via GST Registration. Earlier, Service Tax & VAT Registration was needed & it is now done via GST Registration. It is the best way to get Sole Proprietorship but it has some drawbacks. A business registered through this method must fulfill all the GST requirements & after collecting GST from customers, they should file GST Returns. Our experts at RegisterKaro will help you get GST Registration
Registration through Udyog or Udyam Aadhar Registration under MSME
The MSME issues Udyog Aadhar which are unique identification numbers. A single owner can apply for Udyog Aadhar with the Ministry. Compared to other methods, the Udyog Aadhar is a new method. When a Sole Proprietor registers with the Ministry of MSME, they become eligible for benefits like bank loans, reimbursements & subsidies among other things. They also benefit from getting a unique identity for their Company which is known as Sole Proprietorship Registration. The Registration process of Udyog Aadhar is very simple, our experts will help you with this.