Sole proprietorship in Bangalore
I have accepted an offer from a company based solely in US to work as a sales consultant on commission basis. For mode of payment they have suggested that I open an sole proprietorship and invoice them the amount at the time of payment. When I check with an CA on the procedure he mentioned that I would need NOC from my landlord and we need to choose an company name also I would only be applicable for service tax. (NO VAT/ TIN required). I would like to know for setup such as mine 1) Will there be an inspection from any department regarding the company ? 2) Since i'm not selling any goods or eCommerce based services in India do I require an VAT / TIN number.
Asked 6 months ago in Taxation from Bengaluru, Karnataka
1) if you are staying in rented premises your landlord NOC would be necessary
2) you would need to select name of your proprietary concern and fulfill formalities for opening bank account in name of the concern
3) you would need licence under shops and establishment act . for such purposes inspection of your premises would be necessary before issue of licence
4)you would need VAT registration if your turnover is more than Rs 10 lakhs and you are selling goods or products
1. Well since you asked start a proprietor firm only, you need not open a company as advised by your CA which requires fulfillment of more compliance and NOC of landlord.
2. Yes, you do not require VAT registration either.
Sole proprietorship and company are two different entities. The former does not require registration, the latter has to be incorporated. There will be no inspection for this. VAT/TIN is also not required.