What Is Proprietorship Firm Registration?
The Sole proprietorship firm, as the name advocate, is managed and owned by an Individual. It is a prominent style of business, adopted being accompanied with less compliance and a low setup cost, reason being there is no separate law governing the concept thereby the enterprise and the individual are considered as a single entity, as there is no requirement to get registered for a sole proprietorship for it is advised to whom, who are desires to have a bank account in the name of the business, can thereby register themselves.
What Is The Meaning Of Proprietorship Registration?
As the Proprietorship Registration and the individual are considered the same entity under the laws their accounts are also similar. However, it is sometimes difficult to keep a check on individual expenses and income from the sole proprietorship firm income and expenses. So to ease the business, you can maintain a separate current bank account in name of business i.e. your sole proprietorship firm.
Why Is Sole Proprietorship Firm Registration Required?
Pertinent to mention that there is no categorization between the sole proprietorship and the individual controlling and regulating its act, and are the same as an alter ego and has the same account as per the law. However, there may be cases where it is required to have a veil for differentiating the drawing, individual’s independent expenses and income of the firm. In order to have ease of doing business, so it is required some time to manage the accounts, one need to have a separate account in the name of the firm.
Types Of Sole Proprietorship Registration
A sole proprietorship firm requires at least 2 proofs for a legal entity. Following are the documents which can be used as legal proofs for an entity:
1. MSME Registration certificate along with chartered accountant business certification.
It is applicable when the sole proprietorship when deals within one state only i.e. in Jaipur only and expected turnover or sales less than 20 lakh rupees.
2. GST registration certificate as proprietorship entity .
It is applicable if any of the conditions are fulfilled which are deals intrastate sales or services i.e. from Rajasthan to U.P. ordeals in e-commerce or internet based business or you are a trader, retailer, manufacturer or aggregator or have 20 lakh rupees turnover within a state.
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