1. No Mandatory Business Registration

• A sole proprietorship does not require incorporation under the Companies Act or the LLP Act
  
• It can be started simply by an individual choosing a business name and beginning operations
  
• There is no need to register with the Ministry of Corporate Affairs (MCA)
  
• It operates in the name of the owner or a chosen trade name
  
• However, certain registrations are required depending on the nature and location of the business
  

2. Business Name Selection

• The owner can use a personal name or a trade name for the business
  
• There is no need to register the trade name with any central authority
  
• The name should not violate trademarks or existing brand rights
  
• For banking and licensing purposes, the name must be used consistently
  
• A unique and clear name helps in brand recognition and professionalism
  

3. Mandatory Local Registrations

• A Shop and Establishment License from the local municipal authority may be required
  
• This applies to most businesses operating from a physical location
  
• This license validates the business as a legal entity for labor and trade purposes
  
• Required within 30 days of starting operations in many states
  
• It also helps in opening a current bank account in the business name
  

4. GST and Other Regulatory Registrations

• GST registration is mandatory if annual turnover exceeds the prescribed threshold (₹40 lakh for goods, ₹20 lakh for services, or lower in some states)
  
• GST is also required if the business makes interstate sales or sells online through e-commerce platforms
  
• Businesses can also voluntarily register under Udyam (MSME) for small enterprise benefits
  
• Certain professions may require sector-specific registrations or licenses (e.g., FSSAI for food business)
  
• PAN and Aadhaar of the owner are used for all compliance procedures
  

5. Bank Account and Financial Setup

• A current account in the business name is required for financial transactions
  
• To open a current account, banks usually ask for documents like GST registration, Shop Act license, or Udyam registration
  
• Invoices, receipts, and business documents should use the business name for consistency
  
• It is advisable to separate personal and business finances through a designated account
  
• Maintaining financial records, invoices, and proof of transactions helps in regulatory compliance