- Choose a business name.
- Select a location to conduct business
- Now you can legally start doing business.
- You don’t need to register your sole proprietorship in India.
To receive payments in the name of the business, open a current account in a bank. For this, you will need proof of existence of the firm, and the address proof.
Documents needed include:
1. Pan card and ID for address proof of proprietor.
2. Business address proof (eg: electricity bill in your name, or electricity bill + registered rental agreement, etc.)
3. Two government registration documents confirming name and address of business (shop establishment license, service tax registration, VAT/CST, etc.)
4. CA Certificate
No government registration. needed is needed order to start.
One has to open a current account with a bank in the name of the business.
A current account in turn requires specified location from where you will be doing business.
Submit at the least two documents as proof of business location in the form of government registrations such as shop act license, GST, service tax, CST/VAT, etc.
What is a Sole Proprietorship?
Sole proprietorship, as defined by the Govt. Of India, is a “one-man organization where a single individual owns, manages and controls the business. ”One of the primary benefits is ease of formation, since a government registration is not required. There are no fees to be paid for starting a one-man business on your own, and there is no government regulatory paperwork and compliance to be fulfilled.
There are no minimum capital investment requirements, and the proprietor has full control and ownership stake. You get to keep whatever profit or income you generate.
Furthermore, the tax benefits of sole proprietorship prevent double taxation of the firm. You will file returns and pay taxes only in your personal name. There are no separate income tax returns to be filed and no tax too.
CS.A.Maniraj.,B.Com.,ACS.,CA(Fin), Independent Director
Certified CSR Professional., Certified GST Professional.