1. The business can be commenced by forming a company, partnership or sole proprietorship.
2. You will be liable to obtain registration if your turnover from services is exceeding Rs.10lakhs and also your service is liable to service tax as per section 65 of the Finance Act,1994.
3. To start sole proprietorship business in India the Income tax PAN card, Current Bank Account in the name of the business you want to do to be operated by you as Proprietor & Registration with the Government Department where the trading business you want to do is required.
4. In case the sole proprietorship will be a service providing business the registration for service tax with revenue department will be required, similarly if it is with regard to sale of goods the registration for VAT will be required with the local State government. If the business will be operated from a shop or commercial place then registration for the Shop & Commercial establishment will be required with the local state government.
5. No written deed is necessary for the Sole Proprietorship Business as the DEED is required only in cases like Partnership firms & in this case there is only one person involved in whose sole ownership the business will be operated, hence no written deed will be required as the purpose of written deed of partnership firm etc is to clearly identify the ownership rights, interests, profits & liabilities to be shared by the various partners in the partnership firm, whereas when only one person is the owner & sole operator of the business then he or she is the only person to enjoy all rights, profits or face liabilities during his or her tenure of running the sole proprietorship business. However if any of the Government Department where the Registration of the business is required seek a written deed of the proprietorship business then one can reduce all the details with regard to the identity of the owner, the nature of business to be carried out, financial, property & other Capital the sole owner contributed, the details of bank accounts to be maintained for the business, the full details of loans or any financial advances taken for the establishment of the business, property mortgaged for this purpose & mode of repayment, nature of accounting, details of the books to be maintained for the accounts, the person/s who will be beneficiary in the event of death of the sole owner etc.
6. Registration of Proprietorship firm is optional but it is advisable to register because banks normal insist on registration for opening bank accounts in the name of the firm.
7. A company will have to be registered with the registrar of companies under the Companies Act. In order to make a partnership you will need to get the firm registered with the registrar of firms after completion of the necessary documentation.