India is full of people who are operating the business in the form of sole proprietorship which is the main reason that people need to be very much clear about the basic compliance associated with the proprietorship firm registration online. It is very much advisable for the people to be clear about the technicalities in this particular case and further being clear about the basic process of registering the sole proprietorship firm is important.
Some of the very basic steps of registration have been explained as follows:
- People need to obtain the registration under the Shop and Establishment Act which is perfectly required by the local laws prevailing to the area where people are located.
- People need to apply for registration under the Micro Small and Medium Enterprises development act so that overall goals are easily achieved.
- People need to obtain the registration under the GST whenever the turnover of the business will be exceeding the specified limit in the whole process. This particular limit will be 40 lakhs for the supplier of goods and 20 lakhs for the service providers.
- Trademark registration is very well required in this particular case so that everybody will be able to deal with an exclusive name or brand very successfully.
- People also need to be clear about the requirements of licences and certifications in the whole process so that the nature of business will be easily made available in the whole system and everybody will be able to make the best possible decisions in life.
- People also need to be clear about the availability of different kinds of documents in the form of PAN cards, address proof, Aadhaar cards and several other kinds of related things.
Following are some of the most important advantages of registration of the sole proprietorship:
- This is the easiest possible form of business that is capable of providing people with things in a very comfortable manner.
- This is very easy to start and further ensure that there will be no requirement of any kind of approval from the registrar
- It is based upon a very lower amount of investment in the industry and further ensures that everybody will be able to deal with things very well.
- There will be no sharing of profits in the whole process and everything will be perfectly belonging to the sole proprietor
- This particular type of business form is based upon the very lower number of legal compliances and further everybody will be able to easily carry them out without any kind of chaos. Apart from this, there will be no requirement of uploading the annual report or other reports on the MCA website.
- The income tax slab is very less because the sole proprietor will be involving only a single person so no separate tax will be required to be paid by it. The proprietor and the firm will be considered the same for the calculation of tax liability which will help in making sure that overall goals are very easily achieved.
Apart from all the above-mentioned points being clear about the MSME sole proprietorship registration is important for people so that everybody will be able to get rid of the complexities in the whole process and enjoy proper compliance at every step.