Ideas are easy. Implementation is hard. The success of a Business, in the long run, isn’t only determined by its idea but also the Business structure it is formed of. Hence choosing the right type of Legal Business Entity is very important, here is a list of a few if you wish to set a Sole Proprietorship Firm.
Proprietorship firm
They say one man with courage makes a majority! Hence If you are a single person running the show without any partner support then a Sole proprietorship firm is the easiest to establish. It’s not governed by a particular law, hence it’s very easy to manage as well as to comply with. All you need to do is obtain a few registrations. Depending on your requirement as a Sole Proprietor, the following are the types of registrations that you can opt for:
Registration of a Proprietorship Firm under Shop and Establishment Act License
Smaller shops and establishments together form a largely unorganized sector. To curb the inefficiencies of these small local establishments and to regulate their inner workings, all business entities such as shops, restaurants, Refreshments house, small café, boarding houses, eateries commercial establishments, retail trade/businesses, benefit-making organizations, public amusements need to register themselves within 30 days of incorporation.
A license under Shop And Establishments Act is optional but it serves with the benefits like:
Recognizing your shop as a solid legal entity and building trust across the market as a reliable and authentic Business house.
Allowing opening of a current account on behalf of your entity to avoid any infiltration of personal and Business Transactions
Enforcing thorough inspection by the local authorities to regulate ethical business practices for the employees working in such small shops for better wages and holiday management and strictly curbing child labor.
In a recently issued notification by Maharashtra Government, the number of approvals needed by the tourism sector is cut short to 15 from 70 to streamline the approval process and help overcome the difficulties created by the pandemic. However, Gumasta License applies to these entities situated in Maharashtra.