Mechanism of registering a sole proprietorship Firm

Mechanism of registering a sole proprietorship Firm : There are three ways for getting a sole proprietor-shipfirm register. Sole proprietorship registration under Shop & Establishment Act : This registration can be done by a sole proprietor who has a shop. Shop would mean any premises: 1 . Where goods are sold, either by retail, wholesale, or 2. Where services are rendered to customers. 3. It includes an office a store-room, godown, warehouse or work place, whether in the same premises or otherwise, used in connection with such trade/ business. It does not include a factory or a commercial establishment, hotel etc. As a business owner or proprietor of a shop or establishment, you are compulsorily required to get your shops registered under the Shops and Establishment Act. [caption id="attachment_22866" align="aligncenter" width="616"] Mechanism of registering a sole proprietorship Firm[/caption] Click here for specific rules & procedure of Registering shops under Delhi Shop & Establishment Act. Sole proprietorship registration under Ministry of MSME through Udyog Adhar: Along with Entities like Company, Partnership Firm,Ministry of MSME allows registration of aSole proprietorship through Udyog Adhar. Udyog Adhar is a new method of registration introduced by ministry of MSME. Earlier forms EM-I & EM-II were used for registration. To avail schemes introduced by Ministry of MSME, one has to take registration through Udyog Adhar. Click here to visit the site of Udyog Adhar. Guidelines for Filing the Online Udyog Aadhaar Form Sole proprietorship registration under Goods & Service Tax Act 2017 : GST registration is compulsory for a sole proprietor if his turnover is more than Rs. 20 Lakhs. A sole proprietor can opt for GST registration on voluntary basis even if his turnover is less than Rs. 20 Lakhs. Usually Banks demand forGST registration for opening Current Account . Concept of Trade Name : In case of sole proprietorship firm, a sole proprietor Business does not have a separate legal identity, as in case of a company or partnership firm. Now a sole proprietor might be interested in opening a current Bank account in name of Trade Name of his business. For this there is a concept of Trade Name in GST. Proprietor can use it for opening a current Bank Account in name of Trade Name of his business. For Example Mr. Ram has a proprietorship concern whose trade name is Ram International. Now Mr Ram can open a current Account in Name of Ram International by giving his trade name as Ram International in his GST registration certificate.

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