What Are The Advantages Of The Proprietor Firm Registration In India?

proprietorship firm registration

India is full of people who are very much directly involved in operating their business in the form of a sole proprietorship. People generally go with the option of starting their small businesses by forming a sole proprietorship only. As the name suggests this will be based upon the single entity formed by the name of a single person and the person will own that particular business, managing it and controlling it very well across all the areas without any kind of issue. It can simply be found by any person who wanted to start a business without going through legal formalities. 

 How can people indulge in the proprietorship firm registration? 

  1. First of all, people need to take the registration under the shop and establishment act because this will be required by the local laws prevailing into that particular area where the shop is located.
  2. Now one will need to register under the MSME act which stands for micro, small and medium Enterprises development act and this will be required in the cases of micro, small and medium enterprises.
  3. People need to register into the GST act and this will be required the case turnover of the business is exceeding a specified limit.
  4. People also need to go with the option of dealing with the rules and regulations of the trademark registration act and this will be required whenever the people are dealing with the products and services with the exclusive name or brand. It will be very much beneficial for the people to ensure that there will be no misuse of the brand of the business.
  5. People also need to obtain different kinds of specific licenses associated with the nature of business for example drugs licence, labour license, regional transport office permit, food and safety standards of India permit and several other kinds of related aspects.

  Some of the basic advantages associated with the registration of sole proprietorship are explained as: 

  1. This is considered to be the easiest form of business which the people can indulge in so that there is no compliance of complexity in the whole process and everything can be handled in a very comfortable manner without any kind of issue.
  2. This particular aspect is very easy to start and people can go with the option of dealing with things without any hassle because there are no mandatory registrations under any law.
  3. The amount of investment in this particular area is very low
  4. There will be very few legal compliances associated with this particular sector which will further make sure that people will be highly motivated to do business without any problem or practical difficulty.
  5. Unlike companies in this particular area, information will not be made public which very well respect the privacy element of the whole process and make sure that financial records of the business will also be remaining in the hands of the proprietor only.

Hence, dealing with the proprietary firm registration is very much important for the people so that there is no problem at any point in time and people can give a practical shape to their business idea with minimal investment.