A sole proprietorship requires hardly any legal formalities A sole proprietorship is the most common type of business.
1) you would need licence under shops and establishment act
2) you would need to open bank account in name of sole proprietorship concern
3) for opening bank account RBI has laid down detailed guidelines
Certificate/licence issued by the Municipal authorities under Shop & Establishment Act,
Sales and income tax returns
CST/VAT certificate
Certificate/registration document issued by Sales Tax/Service Tax/Professional Tax authorities
Licence issued by the Registering authority like Certificate of Practice issued by Institute of Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, Food and Drug Control Authorities, registration/licensing document issued in the name of the proprietary concern by the Central Government or State Government Authority/ Department, etc.
The complete Income Tax return (not just the acknowledgement) in the name of the sole proprietor where the firm's income is reflected, duly authenticated/ acknowledged by the Income Tax Authorities.
Utility bills such as electricity, water, and landline telephone bills in the name of the proprietary concern.
Any two of the above documents would suffice. These documents should be in the name of the proprietary concern.
4) you would need service tax registration if turnover is over Rs 9 lakhs
