{"id":27505,"date":"2021-03-16T11:38:54","date_gmt":"2021-03-16T06:08:54","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=27505"},"modified":"2025-03-04T18:47:44","modified_gmt":"2025-03-04T13:17:44","slug":"registration-procedure-of-small-business-documents-required","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/registration-procedure-of-small-business-documents-required\/","title":{"rendered":"Registration Procedure of Small Business &#038; Documents Required"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Small\nbusinesses are the spine of the Indian Economy. The Ease of Doing&nbsp;Business (EODB) in India&nbsp;is\nnotably getting better and according to a new report from the World Bank, India\nranks&nbsp;63rd&nbsp;out of 190\ncountries and has moved up by 14 spots this year.<\/p>\n\n\n\n<p>With\nthe change in time and requirement there are series of reforms that are\nemerging and making it easier to obtain construction permits, trade around the\nworld and pay taxes for the companies and small firms. Among the top 10 most\nimproved economies, India is one of them and is increasing its pace in the\nbusiness field.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/registration-procedure-of-small-business-documents-required\/#Business_Model_that_a_Small_Business_Can_Pick\" >Business Model that a Small Business Can Pick<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/registration-procedure-of-small-business-documents-required\/#Brief_on_Registration_Procedure_for_Small_business_as_Sole_Proprietorship\" >Brief on Registration Procedure for Small business as Sole Proprietorship<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/registration-procedure-of-small-business-documents-required\/#Brief_on_Registration_Procedure_for_Small_Business_as_Partnership\" >Brief on Registration Procedure for Small Business as Partnership<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/registration-procedure-of-small-business-documents-required\/#Brief_on_Registration_Procedure_for_Small_Business_As_Company\" >Brief on Registration Procedure for Small Business As Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/registration-procedure-of-small-business-documents-required\/#Brief_on_Registration_procedure_for_Small_Business_as_MSME\" >Brief on Registration procedure for Small Business as MSME<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/registration-procedure-of-small-business-documents-required\/#Benefits_of_Registering_Small_Business_Firm_in_India\" >Benefits of Registering Small Business Firm in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/registration-procedure-of-small-business-documents-required\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Business_Model_that_a_Small_Business_Can_Pick\"><\/span>Business Model that a Small Business Can Pick <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Due to\nthe recent reforms and Government\u2019s MSME schemes, the ease of doing business is\nexpanding and with the increase in competition many new small firms are opening\nup in the market. Thus, there are few business models that can opt for a small\nbusiness as has been given below:<\/p>\n\n\n\n<ul>\n<li>Sole proprietorship<\/li>\n\n\n\n<li>Partnership<\/li>\n\n\n\n<li>Company<\/li>\n\n\n\n<li>SME<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Brief_on_Registration_Procedure_for_Small_business_as_Sole_Proprietorship\"><\/span>Brief on Registration Procedure for Small business as Sole Proprietorship <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/corpbiz.io\/sole-proprietorship-registration\" title=\"Sole Proprietorship Registration\"><strong>Sole Proprietorship<\/strong><\/a> is a business run by one person. The sole responsibility of decision making and administration of the whole business is on that single person. Therefore, the registrations required for a sole proprietorship are given below, which are as follows:-<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Registering as SME<\/h3>\n\n\n\n<p>It will be best for the small business firm to get it\nregistered under the MSME Act as a Small and Medium Enterprise (SME). As the\ngovernment offers various schemes and provides loans with concessional interest\nrate so it will be beneficial to register as an SME and the application&nbsp;for\nthe same can be filed electronically. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Shop and Establishment Act License<\/h3>\n\n\n\n<p>According to the local laws this license is\nrequired to be obtained but it is not mandatory at every place. This license is\nissued by the municipal corporation on the basis of the employees count.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">GST Registration<\/h3>\n\n\n\n<p>If the annual turnover is more than Rs. 40 lakhs (Rs 20 lakhs for North Eastern \u2013 All hilly states) the person can get&nbsp;the <a href=\"https:\/\/corpbiz.io\/gst-registration\" title=\"GST Registration\"><strong>GST registration<\/strong><\/a>. Also, while doing online business the person is required to obtain a GST number. <\/p>\n\n\n\n<p><em><strong>The following documents are mandatory for small business-<\/strong><\/em><\/p>\n\n\n\n<ul>\n<li>PAN card, Aadhaar Card, photo and contact details of the proprietor<\/li>\n\n\n\n<li>Business place proof (rent agreement or electricity bill)&nbsp;<\/li>\n\n\n\n<li>Copy of the bank statement (for verification of account number, IFSC code and address.<\/li>\n<\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/partnership-firm-and-how-to-register-it\/\">An Analysis on What is a Partnership Firm and How to Register It! <\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Brief_on_Registration_Procedure_for_Small_Business_as_Partnership\"><\/span>Brief on Registration Procedure for Small Business as Partnership<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A\npartnership is where two or more people come together to form a business and\ndivide the profits. The registration process in the partnership business is on\nthe discretion of partners but it is highly recommended to register so as to\navail registration benefits.<\/p>\n\n\n\n<p>The\npartners are required to submit the signed application form to the Registrar of\nfirms of the state together with the fees. The compulsory documents required\nfor the same is:-<\/p>\n\n\n\n<ul>\n<li>Form 1 application\nfor partnership registration.<\/li>\n\n\n\n<li>Affidavit specimen<\/li>\n\n\n\n<li>Partnership Deed\ncertified original copy <\/li>\n\n\n\n<li>Principal place business\nproof like rent agreement or ownership documents <\/li>\n<\/ul>\n\n\n\n<p>After the registrar gets satisfied with the\nsubmitted documents he shall register the partnership firm in the Register of\nFirms and shall issue the Registration Certificate.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Brief_on_Registration_Procedure_for_Small_Business_As_Company\"><\/span>Brief on Registration Procedure for Small Business As Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>In India, registration of a company is now an easy step process. The given below are the mandatory things to acquire:-<\/strong><\/em><\/p>\n\n\n\n<ul>\n<li><strong><a href=\"https:\/\/corpbiz.io\/dsc-registration\" title=\"DSC Registration\">Digital Signature Certificate<\/a><\/strong>(DSC)<\/li>\n\n\n\n<li>Spice+ Part A Form<\/li>\n\n\n\n<li>Spice+ Part B Form<\/li>\n\n\n\n<li>AGILE Pro<\/li>\n\n\n\n<li>Incorporation Certificate<\/li>\n<\/ul>\n\n\n\n<p><em><strong>The mandatory documents required are:-<\/strong><\/em><\/p>\n\n\n\n<ul>\n<li>Aadhaar Cards, PAN cards and other contact\ndetails of the proposed directors of the company<\/li>\n\n\n\n<li>Passport-size photographs for all the directors<\/li>\n\n\n\n<li>In DIR-2 form, the consent to manage as a\ndirector together with the DIN details.<\/li>\n\n\n\n<li>Form INC-9 &#8211; a declaration by subscribers and\ndirectors.<\/li>\n\n\n\n<li>Subscribers and Directors Application for\nobtaining Digital Signature Certificate (DSC)<\/li>\n\n\n\n<li>Furthermore, the proof of the registered office\naddress of the company like evidence of a sale deed or registered title\ndocument in the name of the company.<\/li>\n\n\n\n<li>In case of a rented office- the Non Objection\nCertificate from the owner as a proof to show the use of the property as a\nregistered office address.<\/li>\n\n\n\n<li>In additional, a copy of the resolution of the\nboard or any formal authorization for the use of trademark or company name or <\/li>\n\n\n\n<li>Draft for Memorandum of Association (MoA) and\nthe Articles of Association (AoA) and Certificate of Incorporation<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Brief_on_Registration_procedure_for_Small_Business_as_MSME\"><\/span>Brief on Registration procedure for Small Business as MSME<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nsmall business firms can register themselves based on Aadhaar number only. In\naddition, now the small business firms are no longer obligated to upload documents\nand certificates for online registration. It will be sufficient if the\napplicants provide these details with a self-declaration.<\/p>\n\n\n\n<p>\u201c<a href=\"https:\/\/corpbiz.io\/msme-registration\" title=\"MSME Registration in India\"><strong>Udyam Registration<\/strong><\/a>\u201d is the name of the new form of registration and only after the successful integration of the process of registration with GST and Income Tax it is made possible. Furthermore, the self-declaration details will be duly confirmed by the authorities based on GSTIN and PAN.<\/p>\n\n\n\n<p><strong><em>The registration of MSMEs can be done in the following two categories as has been given below \u2013<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>For New Entrepreneurs <\/li>\n\n\n\n<li>For those already having registration as EM-II or UAM and <\/li>\n<\/ul>\n\n\n\n<p>For\nthose with registration as EM-II or UAM by Assisted filing<\/p>\n\n\n\n<p><em><strong>The important documents necessary for the registration process:-<\/strong><\/em><\/p>\n\n\n\n<ul>\n<li>Aadhar card number <\/li>\n\n\n\n<li>Name, PAN number, other contact details of the applicant.<\/li>\n\n\n\n<li>PAN and address of the business.<\/li>\n\n\n\n<li>Account number of bank and IFSC code<\/li>\n\n\n\n<li>NIC 2 digit code<\/li>\n\n\n\n<li>Investment in plant and machinery equipment<\/li>\n\n\n\n<li>MoA and AoA <\/li>\n\n\n\n<li>The Copy of Purchase Bill and Sales Bill <\/li>\n<\/ul>\n\n\n\n<p>Registration\nof small business firm is voluntary and not compulsory. But the registration of\nthe small business firm can yield various legal benefits. It will be easy for\nthe business person to take any legal action against anyone infringing the\nrights and violating the policies of the firm. <\/p>\n\n\n\n<p>There\nare several benefits under the Acts and Government policies for the registered\nfirms. Few of the named benefits like ISO-9000 reimbursement certification,\nscheme for credit guarantee, tax laws exemption, less custom duty, priority\nsector lending , power tariff and capital subsidies, etc.<\/p>\n\n\n\n<p>The\nregistration of small business firm is done under the State Directorate or\nCommissioner of the Industries or District Industries Centres which is done by\ntaking into consideration the product and location of the small business firm.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_Registering_Small_Business_Firm_in_India\"><\/span>Benefits of Registering Small Business Firm in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The common benefit for every business model including sole proprietorship, partnership, company, MSME shall on registering with small business firm are given below:-<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/Benefits-of-Registering-Small-Business-Firm-in-India.png\" alt=\"Benefits of Registering Small Business Firm in India\" class=\"wp-image-27534\" width=\"463\" height=\"519\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/Benefits-of-Registering-Small-Business-Firm-in-India.png 698w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/Benefits-of-Registering-Small-Business-Firm-in-India-267x300.png 267w\" sizes=\"(max-width: 463px) 100vw, 463px\" \/><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Small\nbusiness firms are the reason of the growth in GDP and development in the\nsocio-economic condition of our country. According to the report of MSME there\nare more than&nbsp;36 million small businesses&nbsp;presently in India that are\ngenerating employment to more than 80 million persons.<\/p>\n\n\n\n<p>The <strong><em>Government of India<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Government_of_India\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> appreciates the remarkable contribution made by these small businesses and also supports them by coming up with various subsidy schemes and different initiatives. Therefore, small business firms should be expanded to promote ease of business in India.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/procedure-reasons-for-change-in-partnership-deed\/\">Procedure &amp; Reasons for Change in Partnership Deed <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Small businesses are the spine of the Indian Economy. The Ease of Doing&nbsp;Business (EODB) in India&nbsp;is notably getting better and according to a new report from the World Bank, India ranks&nbsp;63rd&nbsp;out of 190 countries and has moved up by 14 spots this year. With the change in time and requirement there are series of reforms [&hellip;]<\/p>\n","protected":false},"author":33,"featured_media":27533,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1,158],"tags":[1604],"acf":{"service_id":"5"},"authorName":"Kandarp Vanita","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/image_2021_02_01T09_09_44_024Z.png","authorDescription":"Kandarp Vanita has done masters in Corporate and Commercial Law from WB National University of Juridical Sciences. She has 3 yrs of experience in drafting legal documents &amp; dissertations. Being a curious reader, she is also passionately into providing legal backups and comprehensive understandings in every aspect of Law to the firms.","postViews":12740,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/27505"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=27505"}],"version-history":[{"count":10,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/27505\/revisions"}],"predecessor-version":[{"id":69046,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/27505\/revisions\/69046"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/27533"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=27505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=27505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=27505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}