Starting a Proprietorship in India
Starting a Proprietorship in India
A sole proprietorship is one of the oldest and most common forms of business in India. Proprietorships are business entities that are owned, managed and controlled by one person. Proprietorships are very easy to start and have very minimal regulatory compliance requirements. However, proprietorship’s do not offer the proprietor/proprietor is a host of other benefits such as limited liability, independent existence, transferability, etc., which other types of business entities like LLP and Private Limited Company do. In this article, we look at the processes surrounding the starting up of a proprietorship.
Starting a Proprietorship
Business Licenses
- Food Business Operator License – Required for businesses handling food
- Customs Broker License – Required to act as Customs Broker
- Security Agency License – Required to provide security services
- Shop & Establishment License – Required while operating shops and commercial establishments
Tax Registrations
- GST Registration – Required as per GST turnover limit based on the type of business
- Professional Tax Registration – Required for businesses employing Professionals
- ESI/PF Registration – Required for most businesses having employees
Trademark Registration
Opening a Bank Account
- Certificate/license issued by the Municipal authorities under Shop & Establishment Act,
- GST Registration Certificate
- Registration / licensing document issued in the name of the proprietary concern by the Central Government or State Government Authority / Department.
- IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT as an identity document for opening of a bank account.
- A license 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, etc.
Post by IndiaFilings
IndiaFilings.com is committed to helping entrepreneurs and small business owners start, manage and grow their business with peace of mind at an affordable price. Our aim is to educate the entrepreneur on the legal and regulatory requirements and be a partner throughout the entire business life cycle, offering support to the company at every stage to make sure they are compliant and continually growing.