• Registration and document details for sole proprietorship


I'm working as a freelancer, but now going to start a company as a sole proprietor. I'm also hiring employees. The nature of my business is services and digital products being sold online (no physical products), and most of my clients are abroad, so payments are through PayPal. I have an import/export license and a valid current account. What additional documents and registration is required for my business? Should I register as an SSI and what are the requirements?

Any help would be greatly appreciated. 

Asked 3 years ago in Business Law from Chennai, Tamil Nadu
1. There cannot be a sole proprietorship company. You can have a sole proprietorship firm. 

2. A sole proprietorship requires no registration, but it is advisable to register because banks normal insist on registration for opening bank accounts in the name of the firm.

3. For online payment, the payment gateway should be the one approved by RBI,

4. IT return will have to be filed by you if your income, after applying all deductions, exceeds the exempted income.

Ashish Davessar
Advocate, Jaipur
23180 Answers
641 Consultations

5.0 on 5.0

1) you already have current account in name of sole proprietary concern .you must have satisfied RBI guidelines for KYC for opening current account 

2)obtain PAN card in name of sole proprietorship 

3)obtain licence under shop and establishment act 

4) obtain service tax registration once your annual sales turnover crosses 10 lacs.

5)    Professional Tax: This tax is mandatory if you have even one single employee. Each state is allowed to create its own guidelines, so it would be advisable to check whether it is mandatory to register for professional tax in your particular state.

6) CST/ VAT registration: If you are going to be selling goods, then VAT or CST (between states) may be needed once your annual turnover crosses 5 lacs.
Ajay Sethi
Advocate, Mumbai
46910 Answers
2775 Consultations

5.0 on 5.0

1. For proprietorship business no special registration is required. You need to take a Pan card in the name of the firm, need a trade license and make IT payments in time .
2. If the number of employee is not exceeding 7 , then labour compliance like ESI, family pension, gratuity etc need not be maintained.
3.I find no reason for registration of your firm as SSI Unit since it is not a manufacturing unit.
Devajyoti Barman
Advocate, Kolkata
13192 Answers
175 Consultations

5.0 on 5.0

1. The nature of your business may be through on line but your concern sall have to have physical presence like any such concern,

2. Form the concern by giving it a name,

3. Hire a place of business and open a Bank Account,

4. Apply for and avail PAN Card,

5. Get your concern registered with Sale Tax, VAT and Shops & Establishment Department.
Krishna Kishore Ganguly
Advocate, Kolkata
18818 Answers
454 Consultations

5.0 on 5.0

I do not feel the need for an SSI registration. However it seems to me that there is quite a bit of confusion in what you intend to do. There is nothing called a sole Proprietor Company. Previously there were only two types of Companies PVt. Ltd and Public Ltd. 

The Companies Act has however introduced the concept of OPC( ONe Person Company). This is a company where the entire shareholding is owned by a single person and the Company Needs a Memorandum Of Association (MOA) to be filed with the Registrar of Companies. You would be well advised to mention the details of your business in the MOA. 

You must first figure out your objectives behind setting up a body corporate for business. If you can give the objectives then it would be easier for a lawyer to suggest to you the form a body corporate best suited to your needs.
Saptarshi Banerjee
Advocate, Kolkata
220 Answers
4 Consultations

4.5 on 5.0

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