Sole Proprietorship is a business entity run by a single person who is the single owner of profits from the business and also responsible for any debts. That person is called the sole proprietor. A sole proprietorship does not require any specific legal registration under any specified law in India. But, it's better to apply for a few registrations or licenses under various laws to take benefits under that law and avoid any future legal consequences.

Steps to start a Sole Proprietorship:

• Choose a unique name for your business. It's better if it gives a hint about your business operations.
• Select a place to operate your business. It may be either owned or rented or leased.
• Open a bank account for your business. A Current Account is required to be opened in the name of the Sole Proprietorship (i.e., business name).

Registrations or licenses that should be taken by the Sole Proprietorship concern:

• Registration under the Shop and Establishment Act- Acts as a legal entity proof for carrying on trade, business or profession and this registration is demanded by the local laws.
• Registration under the MSMED (Micro, Small and Medium Enterprises Development) Act- W.e.f. 1st July, 2020, classification among micro, small and medium enterprises shall be as follows:
• Registration under GST (Goods and Service Tax)- Follows PAN base criteria for registration. Where the PAN India turnover of the business exceeds the threshold limit, it becomes mandatory. The limit is ₹ 40 lakhs for supplier of goods and ₹ 20 lakhs for service providers (limit is ₹ 20 lakhs and ₹ 10 lakhs, respectively for specified States). You can take GST registration for your sole proprietorship on voluntary basis also, in order to avail a few benefits like Input Tax credit (ITC), etc.
• Trademark Registration- Advisable to take this registration when you want to trade your products or services with an exclusive name or brand and you want to create a unique identity for the business. It is beneficial where there is a threat of some misuse of the name used in your business.
• Licenses or Certificates that you should obtain considering the nature of your business and for carrying out the operations of your business- Like:

• Drug license
• Labour license
• Regional Transport Office(RTO) permit
• Food Safety and Standards Authority of India(FSSAI) license
• Mandi license
• Professional license
• Certificate issued by the Institute of Chartered Accountants of India, etc.

Documents required to apply for the above registrations/ licenses are as follows:

• Aadhar Card of the Proprietor- Identity proof as well as Address proof.
• PAN Card of the Proprietor- Identity proof and mandatory requirement for filing Income tax returns.
• Address proof of Place of Business- Electricity bill, Water bill, etc. (in case you are the owner of the premises of the place of business) and Rent/ Lease Agreement along with a NOC (Non-Objection Certificate) (in case you have taken the place of business on rent or lease).

Documents required to open bank current account:

RBI has prescribed some KYC (Know Your Customer) norms for opening the bank account which provides a list of the following documents:

• Registration certificates or licenses obtained from various departments as discussed above, containing the name and address of the sole proprietorship concern
• Latest passport size colour photograph of the sole proprietor
• Permanent Account Number [PAN] of Sole Proprietor
• Identity proof of Sole Proprietor- Passport, Voter id, Driving license, etc.
• Address Proof of Sole Proprietor- Aadhar card, Electricity bill, Water bill, Bank statement, etc.
• Where Power of Attorney (POA) has been granted for account operations- Photograph, identity proof and address proof of the POA holder
• Account opening Cheque from existing Current Account (if any).

Notes-
• Applicant is required to self- attest all the documents.
• Ensure that the documents are clear and legible.