• Legal procedure for sole proprietorship Mumbai city tour business

good morning, i am planning to start a mumbai city tours business as a sole ownership mostly walking tours. I would like to know the licences required to start it. i would market/sell the tours through my business website and online. is there any specific tour certification required and what will be the overall fees for the required licenses
Asked 2 years ago in Business Law from Mumbai, Maharashtra
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 

5) for fees for obtaining licences under shop and establishment act visit BMC office in your ward
Ajay Sethi
Advocate, Mumbai
23389 Answers
1229 Consultations
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1.To start a sole proprietorship you need not get registered under firm and societies registration. Registration under shop and commercial Establishment Act is enough.

2. A bank Account is required in the name of your Sole Proprietorship business.To start a sole proprietorship, all you need is a bank account. Go to a bank, open a bank account in the name of the business. 

3. You will require a PAN Card of the Sole Proprietor.

4. Service tax registration for businesses providing services is mandatory if the turnover exceeds Rs. 9 lacs.

5. Company providing goods will have to register for Value Added Tax or VAT (within same state) and/or Central Sales Tax or CST (between states) once their turnover has crossed Rs. 5 lacs, as it becomes mandatory then.
    
6. Other Registrations such as Importer Exporter Code (IEC), Professional Tax, Shop and Establishment License, etc. must be obtained, if applicable.

7.  In case, you employ more then 10 persons, you have to get registered under Factories Act and also have to obtain code nos fro EPF and ESI departments.
Ashish Davessar
Advocate, Jaipur
18262 Answers
450 Consultations
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1) only when ever your turnover crosses 9 lakhs would you need service tax registration if your turnover has been 10 Lacs or more in the previous financial year, you need to pay service tax 


2) you would need to file your income tax returns if your income is above taxable limit 

3) Delhi High Court holds that a website selling goods online amounts to “carrying on business” by the Plaintiff under the Copyright Act, 1957 and Trade Marks Act, 1999.it further observed that the availability of goods through a website at a particular place is virtually the same thing as a seller having a physical shop in the same place.

4) you would also need to register copyright of pictorial representations on your website 

5) you would also need to register your trademark logo
Ajay Sethi
Advocate, Mumbai
23389 Answers
1229 Consultations
5.0 on 5.0
1. It is not mandatory to obtain service tax registration if the turnover does not exceed 9 lacs. 

2. IT returns will have to be filed in the assessment year if the income in the financial year exceeds the exemption limit. 

3. Obtain copyright and trademark registration, albeit the same is not mandatory. Only the proprietor of a registered trademark can use the symbol ® in India. A trademark registration gives exclusive proprietary rights to the rights holder for protection of their trademark in India.
Ashish Davessar
Advocate, Jaipur
18262 Answers
450 Consultations
5.0 on 5.0
Dear Querist
registration of sole proprietor firm is not mandatory, it may be optional if you want to registered then ok otherwise no need. but registered will be better. after registration you can get a  PAN No. for the firm or you can use your own PAN No. for filing Income Tax Return.

if the total turnover is more then 9 lacs then service tax will be applicable.

You may get a registration of copyright & Trademark for future security of your brand, goodwill and services.
contact a lawyer personally or over the phone, it will be better to get best advise.
Nadeem Qureshi
Advocate, New Delhi
3537 Answers
130 Consultations
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1. Since it will be a sole proprietorship set up, select a name and logo for it,

2. Take up a premise from where you shall operate your business,

3. Open Bank account in the name of your firm and take sale tax registration,

4. Register with shops and establishment department and employ/engage assistants,

5.Once your yearly turn over crosses Rs.9 lakhs, you shall have to obtain service tax registration,

6. Since your business will be tour, host a website for your firm giving details of tour programmes you wish to offer.
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
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1. You shall be required to register and pay service tax only when your turn over crosses Rs.9 Lakhs,

2. If you want to operate from your house make sure that your said house is permitted to run commercial activities as per Municipal Law of your area. Selling goods virtually is treated as same as being done physically for all legal purpose,

3. Since it will be a propreitorship firm, you can use your oen Bank account and also you I.T. Pan no.If you use your own Bank account and PAN no. for conducting the said business as a propreitorship firm then you need not have a fresh I.T registration for the purpose..
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
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