Sole Proprietorship Registration Mumbai 

The word “sole” means single and “proprietorship” means ownership. Sole Proprietorship can be defined as a business enterprise whose ownership, management and liability are vested upon a single individual. In Mumbai, India.. Sole Proprietorship is the easiest form of business as it is not governed by any specific Laws.

Characteristics of Sole Proprietorship Registration in Mumbai

1.       Only one individual owns, controls, manages the business. Risk of carrying out the business is completely vested upon the owner.

2.       There is no sharing of profit or loss in this form of business.

3.       The Capital for the sole proprietorship is sourced and pooled systematically by the owner.

4.       There is unlimited Liability upon the owner of the business.

5.       The operation and formation of Sole Proprietorship business form requires almost no legal formalities.

The Registration of the business is also not required however, for the ease or depending on the character of the business the license or permission or registration might be required.

Process for Sole Proprietorship Registration in Mumbai

The Sole Proprietorship does not require any registration however; The Sole Proprietor can get following registrations done:

1.       Registering as SME: The sole proprietor can get his business registered as small and medium enterprise under Micro, Small and Medium Enterprise Development Act. The registration procedure is simple and can be done online with identity and address proofs like Adhar Card, Pan Card, Bank Account and Registered Office Proof.

2.       Shop and Establishment Act License: This License is taken depending upon the local laws. It is issued by the Municipal Authority on the basis of number of Employees.

3.       GST Registration: It is mandatory for the sole proprietor to get the business registered under Goods and Service Tax if the annual turnover is more than 20 Lakhs. GST registration is mandatory for the sole proprietorship businesses conducted online. The Registration process is very simple and can be completed via GST portal. The essential documents are PAN Card, Adhar Card, proof of registered office and bank statement copy.

Depending upon the nature of the business other registration may also be needed. For example: FSSAI registration may be required by the street food vendor.

Advantages of Sole Proprietorship:

1.       Sole Proprietorship form is busy is easy to form and wind up. There are no legal formalities for formation and winding up.

2.       The Profit earned in the due course of business belongs completely to the owner and it is not to be shared with anyone else.

3.       The Business is managed by only the owner and thus, the business is controlled in a better way.

4.       The business secrecy is maintained as the owner is the only person managing the business.

5.       The Business runs smoothly as the owner can maintain close and direct relations with the customers and employees.

6.       This form of business offers flexibility of operations to the owner. He can expand or curtail the operation depending upon the requirements.

Dis-Advantages of Sole Proprietorship:

1.       In this form of business, the owner is vested with the responsibility of pooling the capital for his venture thus, limited capital.

2.       The liability of the owner is complete and unlimited. In case of loss, the debts and business liabilities are to be paid by the owner’s personal property.

3.       There is also lack of continuity. The business is completely depended upon the owner, so it comes to an end in case of death, illness, or insolvency of the owner.

4.       It is not possible for a single person to control and manage business if it expands beyond a certain limit, thus the growth chart is limited.

5.       A single owner cannot always be expert in all aspects of business and thus, it may not flourish beyond certain limits.

If you need legal and professional assistance in sole proprietorship registration Mumbai, contact Legalo now for expert help.

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