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INDIAFILINGS

IndiaFilings helps Entrepreneurs start and grow their business - while remaining compliant under various Indian laws and regulations.

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LEDGERS

Build your business on the latest generation, cloud-based GST software integrating all aspects of GST accounting from invoicing to filing of GST returns.

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Planning to start a business in India. Talk to an IndiaFilings Advisor to know more about the process.

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Requirement

Any person or entity in India can start a new business in India. The business can be registered (Partnership, LLP or Company) or unregistered (Proprietorship Firm).

Our Support

Once you have a business idea, we can offer you a range of services and tools to make your business idea into a reality and ensure its growing.

Business Ideas

All businesses start with an idea. The idea and vision of the Entrepreneur then drives action which turns into a business. Starting a new business and turning business ideas into reality is one of the most rewarding journey a person can undertake. IndiaFilings can help you in this journey acting as a mentor and guide throughout the process - offering you various tools and services to help build a sustainable business.

Business Ideation

The first step in starting a new business is the ideation stage. In this stage, the entrepreneur must look for various ideas or be inspired to start a new business. Once an idea or aspiration develops in the mind of the Entrepreneur, time must be spent in trying to understand the market, the product/service offered, existing competition, availability of manpower, funds, infrastructure, etc., Once the above research is complete, the Entrepreneur can fully-develop a business idea into a plan of action.

Choosing an Advisor and Entity

Before beginning to invest into the new business, it is important to consult an Advisor with experience in helping startups. The Advisor can then understand your business plan and advice you on the choice of legal entity, licenses, funding, taxation and compliance.

IndiaFilings specialises in providing Startup Advisory support. We have helped start over 20,000 businesses across India in every industry possible. Our Advisors are available 24/7, 365 days and can help answer various questions you may have with respect to legal formalities, business licenses, funding, income tax, GST and labour law compliance.

Registration of Business

Once you have selected the right Advisor, the next step would be to register the business. It is important to register the business before purchasing or investing, as the investments can be accounted under the entity.

Today, an Entrepreneur has various choices for legal entity ranging from proprietorship firms to limited companies. For most Entrepreneurs who wish to build a professional business with long-term value creation - a LLP or private limited company would be the right choice. On the other hand, if an Entrepreneur wishes to start a small business with limited scope of operation - a proprietorship firm or partnership firm would suffice.

Every type of legal entity has various advantages and disadvantages. Hence, it is important for the Entrepreneur to discuss his/her plan for business with an Advisor and select the one that fit his/her requirement the best.

Ongoing Compliance

Once the business is registered and operating, it will require continuous support in terms of compliance to scale up. At IndiaFilings, we provide a comprehensive suite of services for startups ranging from income tax filing to GST compliance.

Company Name Availability

Companies Act, 2013 does not permit registration of identical or similar names

9 Articles on Starting a New Business

Pay as you go grow pricing

All Inclusive Pricing - No Hidden Fee

Basic

2899

all inclusive fees

Standard

5899

all inclusive fees

Premium

10899

all inclusive fees

  • Premium LEDGERS Accounting Software with GST Portal Integration and eWay Bill Software.
  • Standard and premium package applicable only for proprietorship with less than Rs.15 lakh turnover per annum

Proprietorship Bank Account Opening


Bank Account Opening

The Reserve Bank of India has laid out Know Your Customer (KYC) norms for opening of current account in the name of a sole proprietorship and all Banks have procedure to open sole proprietorship current account in business name. GST registration is required in most banks to open a current account or business account for a proprietorship.

How many people are required to start a Proprietorship?
Only one person is required to start a Proprietorship and a Proprietorship can have only one promoter.
What are the requirements to be a Proprietor?

The Proprietor must be an Indian citizen and a Resident of India. Non-Resident Indians and Persons of Indian Origin can only invest in a Proprietorship with prior approval of the Government of India.

What are the documents required to start a Proprietorship?

PAN Card for the Proprietor along with identity and address proof is sufficient to start a Proprietorship and obtain other registration, as applicable or required.

What is the capital required to start a Proprietorship?

There is no limit on the minimum capital for starting a Proprietorship. Therefore, a Proprietorship can be started with any amount of minimum capital.

How will IndiaFilings help me start a Proprietorship?

An IndiaFilings Associate will understand your business requirements and help you start a Proprietorship by obtaining the relevant registrations. IndiaFilings will help obtain the necessary registrations to help the Proprietor open a bank account in the name of the business, thereby proving an identity for the business.

How to open a bank account for a Proprietorship?

To open a bank account for a Proprietorship, Reserve Bank of India mandates that the proprietor provide two forms of registration for the Proprietorship along with the PAN Card, identity proof and address proof of the Proprietor. The two forms of registration can be any two of the following: service tax registration, MSME registration, VAT/TIN/CST registration, shop & establishment Act registration, Professional license, Chartered Accountant certificate or others as provided in the RBI Know Your Customer norms.

Will my Proprietorship firm have a separate legal identity?

No, the Proprietorship firm and the Proprietor are one and the same. The PAN Card of the Proprietor will be the PAN Card of the Proprietorship business.Therefore, there will be no separate legal identity for the business. The assets and liabilities of the Proprietorship business and the Proprietor will also be one and the same.

Will my Proprietorship firm have a Certificate or Registration?

Proprietorship firms do not have a Certificate of Incorporation or Certificate of Registration. The identity and legitimacy of a Proprietorship firm is established by registering with the relevant or applicable Government authorities.

How to register the name of a Proprietorship?

There is no registry or regulation for the registering the name of a Proprietorship. Therefore, proprietorship firms can adopt any name that do not infringe on registered trademarks. Since there are no registry or regulation for registering the name of a Proprietorship, the only way to ensure exclusive use of the business name is to obtain a trademark registration of the business name.

How can I transfer my Proprietorship?

A business operated by proprietorship firm cannot be transferred to another person, unlike a Limited Liability Partnership or a Private Limited Company. Only the assets in the Proprietorship can be transferred to another person through sale. Intangible assets like Government approvals, registrations, etc., cannot be transferred to another person.

Can other people invest in a Proprietorship?

Proprietorship firms are business entity that are owned, managed and controlled by one person. So Proprietorship firms cannot issue shares or have investors.

What are the annual compliance requirements for a Proprietorship?

Proprietorship will have to file their annual tax return with the Income Tax Department. Other tax filings like service tax filing or VAT/CST filign may be necessary from time to time, based on the business activity performed. However, annual report or accounts need not be filed with the Ministry or Corporate Affairs, which is required for Limited Liability Partnerships and Companies.

Is audit required for a Proprietorship?

It is not necessary for Proprietorships to prepare audited financial statements each year. However, a tax audit may be necessary based on turnover and other criterion.

Can I later convert my Proprietorship into a Company or LLP?

Yes, there are procedures for converting your Proprietorship business into a Company or a LLP at a later date. However, the procedures to convert a proprietorship business into a Company or LLP are cumbersome, expensive and time-consuming. Therefore, it is wise for many entrepreneurs to consider and start a LLP or Company instead of a Proprietorship.

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