When you start a business individually without other's partnership then that business can be termed as Sole-proprietorship. And the business person who starts this sole proprietorship is known as the sole proprietor. This business is also termed as a sole proprietorship firm. It is basically a type of unregistered business that is handled by one person. It is used by most of the start-ups and also by most of the small scale business which is operating in India. The tax rate is quite low in a sole proprietorship, hence every start-up runs on a sole-proprietorship basis until they get stabilized and the owners and partners increase.
Some complimentary registrations that you may need for Sole-proprietorship?
1) GST registration: The proprietor should opt for GST registration if he is selling goods or services that cross the GST turnover's threshold value for registration.
2) MSME or Udyog Aadhaar registration
MSME or Udyog Aadhaar registration has to be obtained in business name to establish that sole proprietorship is registered with the Ministry of Micro, Small, and Medium Enterprises. It also adds some added-advantage for running your business smoothly.
3) Other Registrations
Other types of registrations like FSSAI, TAN, IE Code, DS, etc. should be taken into consideration based on the type of service we provide be it importing exporting, or be it the supply of food, etc.