Basically, a Sole Proprietorship may be a sort of business during which formal government registration isn't needed. This type of entity is managed, controlled and owned by a single person.
Sole Proprietorship Registration is straightforward to start out and therefore the commonest sort of business in India. It is used by all types of micro and small businesses operating in individuals. Starting a proprietorship is very easy as it has very minimal regulatory compliance and a few requirements to start operating the business. So, it is considered as an ideal type for small businesses and best for the start-up Entrepreneurs who would like to step into the business world.
Who is Proprietor
A Proprietor may be a living individual who is that the owner of that specific business or Sole Proprietorship business. A Proprietor can't be a legal entity or corporate and within the eyes of Law both the Proprietor and Sole Proprietorship are an equivalent. Therefore, to Sole Proprietorship Firm Registration Online India, the PAN and documents of the Proprietor are the essential got to complete and to get the registration process and licenses. If there are any issues or liability within the Sole Proprietorship entity, the only Proprietor is personally responsible or responsible for all issues or liability associated with the business.
The registration process of Proprietorship
There is no certain or specific mechanism or procedure provided by the Government of India for the registration process of a Proprietorship. Even, there is also no State or Central Government Authority to the governor to manage the registration process or operations of Proprietorships in India. Hence, the existence of a proprietorship firm is often founded or shown through the right tax registrations and license which received for the business. For example, MSME registration and GST Registration of the business can be applied and received in the name of the Proprietor which will act as evidence to establish that the Proprietor is functioning a business as a Sole Proprietorship.
As there's no proper registration process to register the name of a Sole Proprietorship business, it's always risky as the other individual or entity also can use the same name to operate their business. So, it is better to go for trademark registration on your Sole Proprietorship business name to avoid issues like duplicates and to protect the business name from other unwanted problems.