Start sole proprietorship
Any Indian citizen with a current account in the name of their business can start a sole proprietorship. However, to open a current account, banks typically require a Shops & Establishments Registration.
A sole proprietorship is a business own and run by an individual. The sort of registration is require if a person wishes to establish commercial enterprises in india to make his enterprise feature frivolously and legally:
- Registration as SME
- Shop and Established order Registration
- GST Registration
In India Sole Proprietorship registration is execute beneath the MSME Act, GST Act or Shop and Establishment Registration Act. Sole Proprietorship can be convert into partnership and private limited companies at later stage.
Aside from a current account, need for any other registration
It is compulsory for any business whose turnover in a financial year exceeds Rs 20 lakhs (Rs 10 lakhs in the case of North Eastern states) to get a GST registration. For businesses that are involved in selling goods or services to customers out of a commercial establishment, it is mandatory to register under Shops and Establishments Act.
Major compliances required under sole proprietorship
Following returns has to be filed to prescribe authority-
- Income Tax return
- GST Return, if registered under CGST Act, 2017
- If liable for Tax Audit, It is require to deduct TDS and file TDS Return.