Is It Okay To Generate Invoice Without Company Registration?

Are you a freelancer or sole proprietor of a small business? Did you know that as a freelancer or a sole proprietor, you can send invoices to different parties even without registering your business with the government? While it’s possible, there are still some technicalities that you will need to look into before generating invoices without a company registration. 

Registering a company is a mandatory procedure for generating invoices to send to your clients. So how do you go around this procedure and start generating invoices without the company registration? 

Importance of Company Registration

As the owner of a registered small business, you get tax benefits and other advantages because of the company registration. Pluss, only a registered business can issue GST invoice in India and that too only for the registered goods and services under the government. Company registration is necessary for generating invoices over taxable goods and services, which are found to be much more credible by the recipients.

However, for freelancers and the sole proprietors of small businesses, it is not a necessity to register under the government. Most of the time, small businesses provide services directly to the client, and the relationship between the business owners and the clients does not require a taxable invoice as such. This is why registering a business with the government at a later stage when it gets a credible amount of business done is a much wiser choice. 

Also, freelancers are more of singular service providers and thus do not require to register unless they open startups or work in collaboration with some SMEs.

Generating Invoice Without Company Registration

Source / Generating Invoices online without company registration 

Being a sole proprietor or a freelancer, you can send a formal invoice in the spirit of integrity and professionalism. This brings a feeling of trust within both parties and makes sure that the business terms are clear. There is an option of generating invoices online as well which makes the whole process easier and is preferred by the freelancers. You can use the available invoice templates while generating invoices online to make the invoice look more credible and professional. 

Professional Header

The first thing that you should consider while generating invoices online is to provide a professional header to it. This means that you should enter your own name as a freelancer or the business’s name if you are the sole proprietor. It should then contain a small logo of your business. 

Next to the header, you will need to enter the contact information and other important details through which the client can get in touch. The header should be in bigger font size than the rest of the invoice. 

Invoice Details

Next, you should include the details of the invoice issuance. These include:

  • A serial number related to the service provided or the date it was provided on. 

  • The invoice should contain the date of generating invoices and the time by which the payment has to be cleared after the issuance of the invoice. 

  • The services provided should be clearly mentioned on the invoice.

  • The value for each service along with the total price should be included.

  • You should further consider writing the late payment fines, and other such procedures that are important for the clients to know.

The invoice details should be properly sequenced so that the clients do not have any problem understanding it. Generating invoices online can help you out with professional templates. 

Advantages of Company Registration

Being a freelancer or sole proprietor of a small business, it’s important for you to learn how registering your business later on can be advantageous. Let’s take a look at some advantages you get with company registration under the government.

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·         Company registration provides you the status of a legal entity, which means you can claim all the perks like tax benefits. What’s more, upon any kind of fraud by the clients, you can legally sue them and get compensation.

·         As you register the company, you begin a perpetual succession for the company which means that even if the management changes, the company will continue to exist the same as it was at the time of registration.

·        Registered small businesses can participate in fundraisers, which will help them expand and grow in terms of revenue and services.


We hope this post gives you an idea regarding generating invoices online without company registration. 

Here's a simple way to generate invoices using excel.

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