Meaning & Features

As the name suggests, it is a business entity formed in the name of a single person. That person owns the business, manages it and controls the various operations. It can simply be formed by any person who wants to start a business without going through various legal formalities. The Sole Proprietor must be a Citizen and Resident of India.

Procedure

There is no such specific legal registration under any law to set up a Sole Proprietorship. But, one can apply for a few registrations or licenses under various laws to avoid any complicated scenario.

These are some of the registrations/licenses that may be opted by the Sole Proprietor:

• Registration under GST (Goods and Service Tax) – It is required in case the turnover of the business exceeds specified limit. The limit is ₹ 40 lakhs for supplier of goods and ₹ 20 lakhs for service providers (limit is ₹ 20 lakhs and ₹ 10 lakhs, respectively for specified States).
• Registration under the Shop and Establishment Act: It is required by the local laws prevailing in the area where Sole Proprietorship is located
• Registration under the MSMED (Micro, Small and Medium Enterprises Development) Act– It is required in case of Micro, Small and Medium Enterprises.

For any kind of assistance, contact Mr.Manohar B V, FCA, MCom @ manohar@mbvca.in / 9916870055