I want to open a small company I read through and asked various people then I got a good idea about the size of my company and my earnings potential.
My requirement is I want to open a very small company a proprietorship would be fine is what I concluded. Now I want to know what is the minimum formality I need to complete for me to bid for small projects as a company.Meaning do I need to get a TAN or TIN or etc.
I might not have any employees and I might not even have any earnings in the first year but I want a formal company to be there so please tell me what is the minimum that I need to have.
09 July 2012
Please note that Sole proprietorship and Company are two separate forms of Business Organisation. So you need to first decide which structure you wish to opt for.
The minimum requirement for a Sole proprietorship will be Shop Act Registration Opening of Current Bank Account Profession Tax Registration Obtain PAN ( if you have a PAN already in your name then it should Suffice) VAT registration if into Sale of products, Service Tax reg ( if into provision of services). However there are certain criteria to be looked into before going for VAT/Service tax regn. For a Sole Prop. you will need TAN if and only if you are liable to Tax audit. As you have mentioned that there might not be any earnings in the first year even Tax audit won't be applicable and hence TAN will not be required. Please note that if you opt for a Company formation there are different requirements. If you still have any further queries you can reach me at prt@prteli.com
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