A proprietorship firm means the firm is no different than its proprietor, i.e, the owner. It is not a company so to say and it is not necessary for a proprietorship firm to be registered under Companies Act or Establishment Act.
As the sole proprietor of the firm, the first thing that has to be done is opening a current bank account in the firm’s name. The firm can be a service provider or a product provider and on the basis of their category they need the following documents to run their firm:
Service Based Business
These firms provide chargeable services to its customers either offline or online.
- Service Tax Certification:
When a person commences a new business, it is obligatory for him/her to obtain service tax registration within 30 days of commencement, if the business will have taxable service in excess of Rs.9 lakhs. Moreover, some banks deny opening a current bank account without Service Tax certification.
- Chartered Accountant Certification regarding nature of business. (Required by some private banks)
These firms sell VAT applicable products to its customers via its online or offline portal.
- Shop Act License ( In Maharashtra or Gujarat it is called Gumasta and in West Bengal, it is called Trade License)
- VAT/Sales TAX/TIN Registration.
Common Documents required in both above cases to register as a Proprietorship Firm:-
- ID and Address Proof in the form of Pan Card/Passport/Voter ID/Aadhar Card/Driving License Copy of the Proprietor.
- Either of the one Business Place Address proof:-
- If Property on Rented: Need Rent Agreement and No Objection Certificate from Landlord.
- If Property is owned: Need Electricity Bills or any other Address Proof.
- For Value Added Tax: – Security Amount as Fixed Deposit or minimum two surety of dealers who are already registered in that state VAT Registration.