Startup India Registration for Proprietorship in India

It’s quite an interesting topic to discuss about the Startup India Registration for Proprietorship. Basically, a Sole Proprietorship is a quite simple business structure where a single person owns and operates the entire business, and also in a Sole Proprietorship, there will be no legal difference between the owner as well as the business entity.

Registering as a startup is simple and it has more benefits. This blog focuses on the process involved and requirements of Startup India Registration for Proprietorship. Startups also attract investment, promote entrepreneurship, and contribute to the development of industries such as technology, e-commerce, and healthcare.

Registration process of Startups in India

Here are the detailed steps that guide as well as give a clear idea about the registration process of the Startup.

• First, It is suggested to visit the Startup India website and fill out all the required details mentioned in the registration form.
• Secondly, it is essential to provide detailed information about the business, which should include the name, address, and the absolute nature of the business operation.
• It is asked to submit the required documents like Permanant Account Number (PAN) card, Aadhaar card, and the business plan by uploading them to the website.
• The business entity needs to provide the Self certify compliance with the right eligibility criteria
• Once all the verification is done, the recognition certificate will be provided which approves the startup plan that is submitted.
• Once a startup gets the recognition certificate it can get various benefits and useful schemes for the development of the startup.

Registration process of Startup India Registration for Proprietorship

The first category under the registration process of the Sole Proprietorship as a Startup is business name registration.

• Business Name Registration:
  • The registration of the business name is quite essential when the Sole Proprietorship is getting registered as a Startup. The below mentioned steps are just an overview of how it is done basically.
• Choosing a Unique Name:
  • The selection of the name should be done consciously. The name should be in such a way that it should be attractive and catchy. It should not be similar to any of the already existing names of the business entity.
  • It can be checked in some trademark databases or in the Ministry of Corporate Affairs (MCA) to know whether the chosen name already exists or not.
• Prepare Documents:
  • All the required documents must be kept ready and submitted when asked to. The main documents like address proof, identity proof, and a photo of the person applying.

• File Application:
  • It is very necessary to fill out and submit the application form which is known as INC -1. This can be in online MCA.
• Pay Fees:
  • Once the form is all filed, it is required to pay the mentioned fee for the business name registration process.
• Approval and Certificate:
  • Once all the verification is done, the Registrar of Companies (ROC) will be providing the Certificate of Incorporation.
• Obtaining the PAN Card:
  • To get a Sole Proprietorship registered as a startup in India, it is essential to obtain a PAN card as it serves as one of the proof of identity and is useful for other tax purposes.
• GST Registration:
  • GST registration is also one of the most essential for the Sole Proprietorship to get registered as a Startup. Once the GST is obtained, the startup can start legally conducting its business.
• Current Bank Account:
  • Opening a Current Bank Account is another important step in the registration process. Once the current bank account is created, next comes applying to the Startup in India.
  • It is the same as the process mentioned above, first, the application form must be filled and the required documents must be uploaded
  • Once all this is done Recognition Certificate will be provided and then with no tension the startup can conduct its business peacefully by following all these legal procedures.

Registration process of Sole Proprietorship as a Startup in India

• PAN Card:
  • PAN card is a mandatory document for the registration of Sole Proprietorship as it contains an identification number provided by the Income Tax Department.
• Business Address Proof
  • It is one of the main documents that is to be provided for the registration of a Sole Proprietorship as a Startup.
  • There are certain acceptable documents for the business address proof like Rent or Lease Agreement or Utility Bill (for example, Water bill, Electricity bill etc,), Property Tax receipt, No Objection Certificate from the particular property owner, and the property ownership documents.

• Bank Account details
  • Bank Account details is the supporting document for the purpose of the registration process.
  • Hence it is advised to provide the Bank Account details which also helps in getting various benefits for the startups.
• Startup Recognition Certificate
  • A Startup Recognition Certificate is one of the main important that must be submitted as it serves as the proof of the Startup Recognition.
  • If it is obtained from the Startup India initiative it will be an initiative.
• Fee structure for Business Name Registration
  • The basic fee structure for the Business Name Registration of a proprietorship entity as a startup will differ in every state.

Generally, the registration fee for the sole proprietorship business varies from place to place. There can be additional charges for services like Director Identification Number (DIN) and Digital Signature Certificate (DSC).

Conclusion

It’s an intriguing issue to debate the startup with Sole Proprietorship. A Sole Proprietorship is a basic business structure in which a single individual owns and runs the whole firm. There is also no legal distinction between the owner and the business entity in a Sole Proprietorship.

Registering as a startup is straightforward and offers several advantages. Startups are critical to the Indian economy because they stimulate innovation, job creation, and economic growth. They bring new ideas, technology, and business models to the table, which boosts competitiveness and efficiency.

Let 24efiling’s experts guide you through company registration with ease.

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