• What formalities needed to start up a small propreitor business

I am planning to open a small apparel business in Bangalore India.
What documentation or formalities I do need to complete and how much will it cost to register and start running my business as per law.
Asked 7 years ago in Business Law

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4 Answers

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

Ajay Sethi
Advocate, Mumbai
95215 Answers
7611 Consultations

5.0 on 5.0

The requirement for statutory and civic compliances varies from cities to cities.

In general circumstances the requirements are to register for sales tax and Vat. Trade License is another requirement.

You need to register under Shop and Establishment Act as well.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

you must have a legal entity like proprietary firm, partnership firm, limited partnership firm or a limited company. a legal entity will lower down your business and you can save more tax. thereafter you have to get valid license. you should contact a local lawyer for actual fee thereof.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

The legal requirements shall be PAN,TAN, VAT/CST (if you envision a turnover of over 10 lakh in the first year) , Shops and Establishments Registration and KARNATAKA Professional Tax Registration.

The cost for registration and the cost for initial business can be clarified locally.

T Kalaiselvan
Advocate, Vellore
85416 Answers
2239 Consultations

5.0 on 5.0

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