Dear Sambit
it will be better to contact a lawyer personally.
Procedure to register a sole proprietorship company
Hello sir/madam, I am Sambit ,just fininshed my MBA. I want to register my music company, which is a service based company. It has four verticals.Artist management;production house;online record label;music festival division. So wanted to know the procedure of registering this company & the cost involved for doing the same. This information will be really helpful to me. Thank you warm regards Sambit Jena
Asked 10 years ago in Business Law
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9 Answers
First you need to register a Private Limited Company. Please seek professional help from local advocates.
sole proprietorship does not require registration . if you want to form partnership firm it requires registration with Register of Firms . if you want to form company it requires registration under the Companies Act .
for running your music business you will need license under Shop and establishment act , . you will need service tax registration if taxable services are more than Rs 10 lakhs in a year . in addition you will need VAT registration if you are selling goods within state .
Thank you Ajay sir. Could you please tell me that, if a sole proprietorship doesn't need registration then do we call ourselves a registered company? The reason is , the clients we are working with requires an "INVOICE" and the invoice consists of a regd.no. So will i get an registration number just by applying for a service tax registration? And we dont sell goods , its a service based music company with a media production house .I think the "VAT" part is not necessary?... please do correct me if i'm wrong. regards.
Asked 10 years ago
you would be sole proprietor not a registered company . the disadvantage of sole proprietor ship is unlimited liability . if you form a company it has limited liability .
if your total taxable services is more than Rs 10 lakhs in a year you need service tax registration .
Ok Sir, then what do we provide in our invoice. Is the regd.no. not required in the invoice? Because the clients are insisting for an invoice.
Asked 10 years ago
service tax registration number would be required in invoice requirements
To ensure quality postings and on-time payment, invoices and credit notes received must have the
following information:
Supplier Information:
? Supplier Name
? Supplier Address
? PAN number
? Supplier’s VAT registration number where VAT is charged
? Service tax registration number where service tax is charged
? Proprietor’s name (in case of sole proprietor)
Thank you so much Ajay sir.This was of real help for me.So kind of you. Thank you so much.
Asked 10 years ago
thanks for your appreciation
Than you for your response sir.Is it really possible? B'coz the info that i have says u shud hav at least 2 directors to form a pvt ltd cmpny or else u can go for a sole proprietorship.
Asked 10 years ago
okay.. than you sir for the information.
Asked 10 years ago
There is no legal obligation to register the sole proprietorship. However, you should register for VAT / Service Tax / Shop and Establishment Act / IEC etc depending on what is applicable to your business having regard to the nature thereof and local laws. If it is a shop, the local administration i.e. the municipality or corporation will gives a licence and if a trading business, the sales tax registration. If this being operated from a shop or commercial place then registration for the Shop & commercial establishment will be required with the local state government.
The service tax number allotted to you will be required to be mentioned in the invoice as the registration number. No written deed is required as the same is required in case of a partnership or a limited liability company to clearly identify and set out the extent of liabilities of the partners or directors. A sole proprietor being the master of his business is completely liable for any loss.
resolved query