A sole proprietorship is the most basic form of business registration that one must acquire to commence his work. It is the base of your business entity. Most small and new businesses generally go for a sole proprietorship registration before advancing to a partnership firm.
If you are a person planning to start a business in Maharashtra then going for a sole proprietorship can be the first legal step you can take. Yes! you always have other options, but if you are just testing the waters then the cheapest way ahead is going for this type of registration.
There are many pros and cons associated with this type or category of business registration. This is something we would be discussing shortly.
Yes, you should go for it if you are planning to run a small business initially and are uncertain about its future. Forming a proprietorship firm gives you the ability to start small and scale big. This is the best option for people who run a consultancy (service) or just don't want to scale up things as of now.
This format of business registration is handled by a single person and requires minimal documentation for formation. Since a single person is the head of this type of firm then it is obvious that all the liability is also on him. In short, we can say that sole prop comes with unlimited liability as far as business is concerned. That's why bigger companies have less trust and confidence in sole proprietorship business.
The registration process is simple and you have the option of going for GST registration. However sooner or later if your business picks up the pace and reaches a respectable turnover, going for GST registration would become mandatory. We do offer expert consultancy on GST registration, so if you need some advice on it then please feel free to visit our GST page for that.
As far as the registration is concerned the documents that you would require are address proof, identity proof (Aadhar card), and professional tax registration certificate in case you are a professional services provider, service tax registration is no longer required as GST is there. As a sole proprietor, you might have to get some additional documentation done as required by the local bodies in Maharashtra.
This is one form of government registration that takes the least amount of time to be processed. However, this form of business entity increases the legal liability of proprietors by a lot. It would also be harder for you to secure bank loans and working capital as the trust factor is pretty low here. Here the business and the person are not a separate entity and this makes things a bit difficult on the funding part. Still, you become a legal entity and conduct business in the regular format.
So, now it is up to you, whether you wish to go for this format of registration or else.
We are experts in business registrations, if you explore our website you would see that we offer business registration services for every category that is legal in India. From your income tax filing to managing all the relevant documents our team can help you get everything done effortlessly and accurately. Connect with us to know how we can help you start your business.