Proprietorship registration of sole proprietorship happens with Local Municipal Corporation office, its called Gumasta or Shop and Establishment License. One can also obtain MSME Udyog Aadhar registration based on Aadhar Card number of the Individual proprietor.
No other separate registration of sole proprietorship is being done as per Indian Laws for business incorporation.
In sole proprietorship, Individual proprietors PAN serve as valid PAN for business and no separate PAN are available. Income Tax Return from the business of proprietorship gets included and taxed in the hands of proprietor as Business Income and will be reported in personal income tax return of proprietor at applicable personal tax rates.
For Selling goods on e-commerce portal, Goods and Service Tax Registration (GST) is mandatory for the business. One needs to obtain GST Registration by submitting documents of KYC, Business proof, bank proof etc in the state of operation. On obtaining GST Registration, E-commerce marketplace will register your business as Online selling vendor.
One may also need to obtain registration under Professional Tax (PTEC) which is the tax of doing business in the state and generally fixed amount to be paid on annual basis.
Accounting and Records
Once business is registered under various tax laws like GST, Income Tax Returns, filing of return and payment of taxes become mandatory. Accounting record needs to be maintained generally by all the business, except the case where Business whose turnover is below Rs.2 Crore and declaring profits.
Cost effective and Fast with less compliance
There are minimal compliance with proprietorship business to register and operate. Its extremely fast and practically business can be opened in 1 day time with the least expensive form of operation.
Risks and limitations
Obviously, the proprietorship firm has its own set of Risks and limitations like Liability of Owner is unlimited and he is liable personally in the event of defaults. Limited Brand identity and credibility as Proprietorship firms are not governed separately under the law and prone to litigation, financial in-discipline to name a few.