What is a business license?

A business license is an official document issued by the government that enables your company to conduct lawful business in a specific area. Depending on your industry and the location of your operations, a variety of business licenses and permissions may be needed.

What is the cost of a business license in India?

Depending on the kind of business, the location, and other factors, a business license in India might cost different amounts. There may be associated fees for various licenses, and expenses for document processing and verification may also be included in the total cost. To find out the precise expenses that apply to your firm, it is advised that you speak with a professional or the local regulatory authorities.

Is a business license the same as a permit?

A business license is not the same as a permit. While permits ensure that your business adheres to safety and preventative measures, business licenses attest to your company's compliance with state legislation.

How can I obtain a business license?

To obtain a business license, go to the office or website of the state regulatory body where the enterprise is situated. After you've determined the licenses your company needs, it's time to gather the required paperwork and submit an application for a business license. Most of the time, you can apply for a business license online, but in other situations, you might need to send or fax your application to the appropriate authority.

What happens if you run a business without a license?

If the company doesn't follow the rules, the regulating body has the right to punish it or even ask that it close.

What type of business license do I need?

While business licenses are handled locally in certain states, there are general business licenses in others. Your industry, town, county, or city may need additional licenses and permits. Before opening your firm, make sure you have everything.

Do business licenses expire?

The response is contingent upon your particular business. Certain business licenses are still in effect as long as your company is operating and you fulfil the license conditions. Other business licenses need to be updated periodically or annually. To find out if and when your license may expire, research your state's licensing rules.

How do I renew a business license?

When it's time to update or renew your company license, you must go to your state's revenue agency and complete the required procedures. Remember that the procedure could vary depending on the state where your firm is located.

Can I transfer my business license?

In some situations, a business license can be transferred. Remember, nevertheless, that the legislation of the jurisdiction where your license was submitted as well as your business may have an impact on the transfer of your business license. Depending on whether you're starting a new company or taking over an established one, you could occasionally need to apply for a new business license under your new name. Verify whether it is permissible to transfer your company license by contacting the appropriate state agency.

Small Business Registration in India

Give your Small Business a Head Start with the best CFO experts

Get Expert Advice to Successfully Launch as a Sole Proprietor or Freelancer

We help small businesses begin their journey without apprehension and stress

Ease the registration process with experts guiding you from start to end
Cost-effective services, transparent pricing, and no hidden fees
Fast turnaround time and complete control over your business

Why Choose MyBizCFO for Small Business Registration?

Small businesses are perhaps the most common way to run businesses in India. A sole proprietor is a person who conducts business, and a proprietorship firm is the name of the business entity that they operate under. An individual's identity and a business's identity are the same. People choose this structure during the early stages of business because of its lower tax rate, flexibility, and many benefits. However, lack of knowledge often causes issues for small business owners. At MyBizCFO, we help sole proprietors and freelancers get the right start in the business landscape.

On-call support with dedicated account managers

A simple, quick, and easy online registration process

A team of qualified experts with extensive financial know-how

Fast turnaround and cost-effective services for small businesses

Benefits of Registering a Private Limited Company

Simplicity

Establishing and registering a sole proprietorship is comparatively simple. Setting up this firm doesn't require any particular steps. When compared to other business structures, the cost of registering as a single proprietorship is also extremely low. The owner's identity is the foundation of the company. Any legitimate business can be operated by someone under his own name or under a separate legal name as a brand.

Autonomy and Control

The owner of a sole proprietorship has complete control over what they do and how they run their business. It is not necessary for a proprietor to report someone or accept orders from others. There isn't any outside intervention. There aren't many transparency or compliance requirements for the entire fiscal year, in contrast to a corporate firm. Therefore, there is also relatively little government intervention.

Profitability

Since the proprietor is the sole owner of the company, he is entitled to the entire profit. Additionally, the proprietor's assets are treated as the business's assets, and vice versa. He is free to choose when to reserve or take a profit.

Tax Advantages

For income tax purposes, a proprietorship is not regarded differently. The tax slab designated for an individual's income solely applies to company income. The tax rates are lower than those of other business structures, such as partnerships and companies. Deductions are an extra benefit of combined ITR for both individuals and businesses.

Deciding the Name of Your Small Business

Here are a few things you must keep in mind when deciding the name of your small business:

Uniqueness:

Find a distinctive sole proprietorship name that will help people recognise the business and increase its brand value.

Brief and Easy:

The name should be easy to spell and remember, and it shouldn't be too long or complicated.

Business Objective:

For customers to readily connect a firm with its products, a portion of the name should allude to the business activity.

Documents Required to Register a Small Business

Self-attested copy of the proprietor’s Aadhar Card

Self-attested copy of the proprietor’s PAN Card

Details of the current or savings bank account

Our Process: Steps to Register your Small Business with MyBizCFO

Step 1: Answer Quick Questions

Pick a package according to your requirements
Take 10 minutes to fill in our questionnaire
Provide basic details and documents needed for registration
Pay our fees through secured payment gateways

Step 2: Get Expert Guidance

Dedicated Relationship Manager
Application preparation and filing
Registration under the MSME Department
Firm Seal & TAN allotment

Step 3: Business Incorporation

Set up in only 4 working days

Get on a free assessment call with an expert.

Small Business Registration Timeline

Days 1

Collection of basic details
Gathering required documents
Business registration consulting

Days 2-3

Preparation of online registration application
Online business registration
Application for TAN allotment

Day 4

Dispatch of Firm seal

Frequently asked questions

Does the small business proprietor have to be an Indian to start a firm?

The proprietor needs to be a resident of India and an Indian citizen. Before the business can begin, no approval is needed. However, only with prior permission from the Indian government can Non-Resident Indians (NRI) and Persons of Indian Origin invest or begin a sole proprietorship.

How much money is needed as a minimum to register a sole proprietorship online?

Any amount of money can be used to launch a sole proprietorship. It is important to present a sum that is adequate to start the business. The owner is free to alter capital at any time because there are no restrictions on the amount that may be infused or withdrawn. The sole decision to introduce capital in a business is made by the proprietor, who owns the company.

How to register the name of a small sole proprietor business?

A sole proprietorship firm's name cannot be registered through any registry or legislation. As a result, a sole proprietorship can choose any name as long as it doesn't violate any registered trademarks and is available. The only method to guarantee the exclusive use of a business name is to register it as a trademark, as there is no registration or law for registering a proprietorship's name.

How can a sole proprietor or freelancer open a small business bank account?

The Reserve Bank of India requires the proprietor to present two forms of proprietorship registration in addition to their PAN card, proof of identity, and proof of address in order to open a bank account in the name of a sole proprietorship firm. The two types of registration can be any of the following: professional licence, chartered accountant certificate, GST registration, MSME registration, Shop & Establishment Act registration, or other types specified in the RBI's Know Your Customer guidelines or the requirements of the individual banks.

Will my small business have a separate legal identity or a new PAN card after registration?

Even once a sole proprietorship firm is registered, neither the person nor the business has a distinct identity. As a result, the proprietor's and the company's PAN cards are identical. Additionally, the proprietorship's and the owner's assets and liabilities are unchanged.

What compliance requirements must be met in order to establish a sole proprietorship in India?

The Income Tax Department is where proprietorships must submit their yearly tax returns. Depending on the business operations carried out and the registrations chosen, additional tax filings, such as GST returns, may occasionally be required. However, Limited Liability Proprietorships and Companies must submit their annual report or accounts to the Ministry of Corporate Affairs.

In a sole proprietorship, is it possible to have partners?

The fact that a sole proprietorship is owned and run by just one person means that it is unable to have any other business partners. You can choose a partnership firm, private limited company, or limited liability partnership, depending on whether your business needs partners.

What are the advantages of registering a small business under the MSMED Act?

On the basis of a registration certificate, the registered entity under the MSMED Act is eligible to receive subsidies, incentives, and programs introduced by the Central Government with regard to the particular business.

Who is eligible to register under the MSMED Act?

This registration is open to any corporate entity. The Central Government has, however, lately decided that trading operations are not eligible for registration under this Act. Under the Shop & Establishments Act, a company engaged in trading activities may request registration.

Do you have more questions? Get in Touch

What Clients Say About Us

Nisha Raut

Local Guide • 4 days ago

MyBizCFO simplified my journey as a small business owner. I was completely overwhelmed by the registration and compliance guidelines. But these experts made everything simple and seamless for me.

Google Reviews

5.0

Pooja kamde

Local Guide • 2 hour ago

Setting up my freelance business through registration seemed like an uphill task to me when I got started. MyBizCFO came to my rescue with all the guidance and advice I needed for the process. I still rely on their seasoned support!

Google Reviews

5.0

Mangesh Nair

2 days ago

Big thanks to MyBizCFO for their constant support, availability, and efficient assistance. I couldn’t have started my business without them, and I cannot run it without their guidance.

Google Reviews

5.0