Starting a Sole proprietorship in India

Hi There,
I am not sure if this is the best place to post this message.
Need some help there. This is reg starting a sole proprietorship firm in India.I intend to register a sole proprietorship firm for property consultancy. I want to know what exactly is the process here. Do we need to get the name registered somewhere? Also, I am told we need a current account...what all does it require to open the current account? Do we need a proof of company...would be great if anyone can guide me.
Rgds,
Avinash

 

1. Decide a good attractive name.

2. Get VAT form No. 1, fill in duplicate, affix your photo, attach NOC given by the Building owner.

3. Submit the same to your local VAT Office, which will be decided by your postal PIN code.

4. You will be asked to make some deposit. Take NSC for the amount from the nearest Post Office. Pledge it to the concerned LVO. ( take a photo copy for your file )

5. You will get your VAT registration Certificate, with in an hour, collect it. Display it in your Business premises.

6. Get the Tax Invoice printed, along with your 11 digit TIN number, start doing business. ( first two numbers indicates your State )

7. Keep all books of account up to date and file your monthly returns, on or before 20 th of next month, with out fail.

8. Good luck to your new venture.

 

you googled that didn't you

 

If you are just starting out on a small scale, there is no registration required for sole proprietorship... you can do it later when your turnover justifies it...

But you will have to apply for PAN card, that is, if you don't have on on your personal name... And yes you have to open current account... To open current account you will need PAN card and address proof in your name or business name...

Unless you are going to sell property, I think you don't need to apply for VAT. If your consultancy is just offering services, you will need service tax registration...

 

hi there, i tried to open a current account in mumbai but they told me that i need minimum 2 government proofs stating the evidence of my company in my company named XYZ. But the problem is my business is based on selling purposes. Means i import goods on small scale as of now and sell them here in india. And then i came to know that i need to apply for VAT number if i want to sell it in legal way. But my problem is that i dont earn so much also that i can afford to deposit Rs 30000 there. So how can i do that? And other documents like service tax and professional tax are not for me coz i dont offer service but there is sales involved. However i have no idea about sales tax. How to get that and do i really need it? Also i have heard that you are eligible to pay tax only if your minimum turnover is Rs 15 lakhs,. And as of now, my turnover is just Rs 1-2 lakhs and hardly earn around Rs 3000-5000 per month, so i dont come under that category. Now only problem for me as of now is current account. I am really confused what to do? Anybody can give me any suggestions will be great. Do tell me. Thanks in advance

 

Hi Darshan,

Were you able to sort this out? I am in a similar situation as you are. I am looking at importing stuff into India and selling him on a smaller scale. The problem is to open an current account in my companys name, banks as for any one of the many certificates like shop act, VAT, etc. I dont know what to do... I will not be making more than 5-6k per month so I cant affford to pay 5k +25k for voluntary VAT. Pls tell me what did you do?
Regards
Frank

 

hi there yes i sorted out some issues. Its not needed to deposit 25k until u reach a good amount of turnover, but remember your turnover of above 5 lakhs should be of either sales i.e. wat you sell or of purchase that you make to sell. Also, if you want to import anything to india, then there are many many procedures to do it legally. First and formost, current account is needed, create 1 in a co-operative bank and them them you dont have any docs as of now, later from that current account create any 1 government id like professional tax or any other and then you will have 2 valid documents, fr second doc, you can show CA letter issued by your CA. Then on this basis, you will need to open a current acc in a nationalized bank or else DGFT people wont accept your application for the license.

 

Hey thanks for you reply, Darshan.Just to reconfirm, I first need to open an account in a co-operative bank which they will do without any documents right? I then need to create a government id like a professional tax/service tax. Now that makes it one1, does a letter from a CA work as an id?

Also, I am looking at importing protein supplements into India, can you tell me apart from IEC, is there any other registration that is required?

Appreciate your kind help.
Regards,
Franki

 

Hi,i am planning to start a sole proprietor business of selling printers. Please help in the following. I reside in Gujarat.1. Can i start the business in my name? Or is it necessay to have a name like xxx sales or yyy agency?2. Do i need to register this at any government or local municipal authority?