The most easiest and most cost effective way to start a business in India is to Start a Proprietorship Firm in India.
Easy to Start ! Easy to Close !
GST Registration is required in most of the businesses running in India, hence to avoid multiple registrations we can take GST registration for a Proprietorship Firm
Businessman can alternatively take registration in Shop and Establishment Act to start a new Sole Proprietorship Firm in all the States of India. No monthly compliances.
Government of India has provided one more option to start a New business in the format of Sole Proprietorship by taking Registration in Udhyag Aadhar or MSME department.
It’s a one man show. Remember it’s not a company or a partnership, it’s a best and low budget way to start a business in India with the less compliance. It needs only a single person for proprietorship firm registration in India.
Tip :- if you are working as an employee then you can register on your family member documents, if your company does not allow for doing the business in India and on later stage convert on your name. Have an advise of Firm Registration Consultant in this case.
As per the most experienced Firm Registration Consultant Sole Proprietorship firm do not have any requirement for legal registration so ultimate objective is opening a current bank account but banks always ask for a legal proof of the firm to open a current bank account on your business name, so you have to apply for minimum 1 government approved registration Like GST to start a Proprietorship Firm.
Unlike companies, sole proprietorship are not treated separately by the Tax Departments. This means that any profit derived from your sole proprietorship is treated as your personal income and is treated as your individual income. Any such income is taxed to you in the year it was received or accrued.
Annual Compliance is just only you have to File Your GST Returns and Income Tax Return of the Proprietor of the Business.
Less Costing :- If we talk about starting of a New Proprietorship Firm then it can be easily start with less than 1000 Rupees through GST Registration or Shop and Establishment Act Registration.
Less Compliance :- You have to just file the income tax return as individual at the end of year nearby in July. You have to maintain basic invoices of income and expenses of the firm.
Less Income Tax :- You have to pay income tax to the government when your gross total income is more than 2.5 lac INR per annum. So it gives you tax advantages on slab basis.
You can go through the budget highlights affecting Individuals.
Not necessarily. But every business is unique and there may be circumstances where a partnership, LLC, or some other kind of business structure is a better fit you will know this by engaging an Firm Registration Consultant in your business. You also may want to get more insight into the specific liabilities your sole proprietorship may face. Learn more about other business formats.
Every Business format have its own drawbacks so as in this case also we have following negative points-
No, in case of proprietorship firm PAN of proprietor will be used. No separate PAN will be available in the name of proprietorship firm.
Online Registration Services for Business in India
Copyright © 2020 TaxIndia24 | Trademark | Company Registration | GST | Best Legal Services | - All Rights Reserved by D2Web Digital Experts Private Limited
Powered by dial2web.com