What is a Sole Proprietorship?
When a business is owned and governed by one person, it is called a Sole Proprietorship. This type of business can be incorporated in fifteen days and hence makes it one of the most popular types of business to begin in the unsystematic sector, specifically among merchants and small traders. For a Sole Proprietorship business, registration is not required as it is identified through alternate registrations, such as GST registrations. However, its liability is unlimited and it also doesn’t have perpetual existence.
Checklist Items for a Sole Proprietorship Registration
A certificate/license issued by Municipal authorities under the Shop & Establishment Act.
The registration/licensing document is issued in the name of the proprietary concern by the Central Government or the State Government Authority/ Department, etc.
The banks may also accept the IEC (Importer Exporter Code) issued to the proprietary concern by the office of the DGFT as an identity document for opening of the bank account etc.
Complete Income Tax return (not just the acknowledgement) in the name of the sole proprietor where the firm’s income is reflected, duly authenticated and acknowledged by the Income Tax Authorities.
What Are The Documents Required For Opening A Current Account?
To open a current account, the following documents are required;
Proof of the existence of your business;
Shops & Establishments Act Registration;
PAN card;
Address and Identity proof.
