Proprietorship / Shop Act / Gumasta Registration

PROPRIETORSHIP REGISTRATION

Basic Concept: A sole proprietorship is owned, managed and controlled by single person (Known as a Proprietor). It is very easy to start the sole Proprietorship Firm. It has minimal regulatory compliance requirements. It is mainly preferred by Micro and Small businesses that are operating at the initial level. However, it lacks limited liability of proprietor, corporate status, separate legal existence, transferability and perpetuity which are desirable features for medium and large scale businesses. It is very easy to start the sole Proprietorship Firm.

It is necessary to intimate the facilitator or obtain License under Maharashtra Shops and Establishments Act, 1948 (for Maharashtra) or obtain license applicable as per the other State Law (for Other States). Further tax and other business registrations can be obtained once the proprietor’s business comes within the criteria prescribed under the different statutes. For instance, GST Registration can be obtained in the name of the Proprietor. All the registrations for a proprietorship would be in the name of the Proprietor.

 

PROPRIETORSHIP REGISTRATION

Basic Concept:

A sole proprietorship is owned, managed and controlled by single person (Known as a Proprietor). It is very easy to start the sole Proprietorship Firm. It has minimal regulatory compliance requirements. It is mainly preferred by Micro and Small businesses that are operating at the initial level. However, it lacks limited liability of proprietor, corporate status, separate legal existence, transferability and perpetuity which are desirable features for medium and large scale businesses.

It is necessary to intimate the facilitator or obtain License under Maharashtra Shops and Establishments Act, 1948 (for Maharashtra) or obtain license applicable as per the other State Law (for Other States). Further tax and other business registrations can be obtained once the proprietor’s business comes within the criteria prescribed under the different statutes. For instance, GST Registration can be obtained in the name of the Proprietor. All the registrations for a proprietorship would be in the name of the Proprietor, making the Proprietor personally liable for all the liabilities of the Proprietorship. The average time taken to complete a proprietorship registration is 3 to 5 working days, subject to the Government processing and the receipt of required documents from clients.

Advantages of Proprietorship Registration

1.Easy to Start:

Proprietorship is the easiest forms of business entity to start with. After starting the Proprietorship, it is relatively easy to open a bank account or obtain a payment gateway in the name of the business and other registrations like, Shop Act Registration, GST Registration.

2.Business Name:

A proprietor can choose any name as long as it does not infringe on a registered trademark. However, since the name is not registered, any other person can also use the same business name unless trademark registration is obtained.

3.Lower Taxes:

Proprietorship having turnover below the applicable tax slabs of income tax then it is not required to pay any income tax, as proprietorship's are taxed as the individual owing the business. However, unlike a company or LLP, a proprietorship cannot enjoy some of the tax deductions, which may potentially increase the tax liability

4.Single Owner:

Only single person is required to register a proprietorship. For all other types of entities like company except One Person Company or LLP or partnership firm, at least two or more promoters are required.

5.Easy to Close:

As the Proprietor and the Proprietorship are one and the same for all purposes, there is no formality for winding up or closing a proprietorship. The tax registrations obtained in the name of the proprietor are required to be cancelled in most cases.

Documents


Passport Photo

Passport Photo of all parties.


PAN Card

PAN Card of all parties.


Aadhar Card

Aadhar Card of all parties.


Utility Bill

Utility Bill of Electricity or Telephone.


Address Proof

Entity Address Proof of all the parties.


Licence

Valid Driving Licence of all the parties.


Terms and Conditions

Terms and Conditions between the parties.


Other documents

Other documents will be intimated through e-mail.

FAQ

Easy to Start the Business You can get Shop Act License in just 2 – 3 days’ time As a startup you can gain benefits such as Simple and less costly Business registration, Ease in raising funds for business, Tax Holiday, Easy access to Research and development facilities Given the First priority when you apply for the Government tenders In India. Less Legal Compliances that you need to follow.

Every shop and establishment needs to register itself mandatorily under the Maharashtra Shops and Establishment Act, 1948within 30 days of commencement of work.

To secure uniform benefits for employees working in different establishments, from shops, commercial establishments and residential hotels to restaurants, theatres and other places of public amusement or entertainment

Obtaining of Shop Act usually takes about 2-3 working days’ subject to the receipt of supporting documents from client and the approval of the Govt. Authority.

Click on Get Quotation tab above and fill the details, you will receive required documents list and quotation in few seconds in your mailbox. No charges for requirement list and Quotation.