Sole proprietors
This query is : Resolved
13 February 2015
Dear Experts,
If any individual want a start-up a business under define banner (Name of the business).
he want to grow this his own efforts, what are the formalities. like
1. Any Registration
2. Tax compliance etc.
3. how get the bank account.
Thanks
If any individual want a start-up a business under define banner (Name of the business).
he want to grow this his own efforts, what are the formalities. like
1. Any Registration
2. Tax compliance etc.
3. how get the bank account.
Thanks
13 February 2015
Please reply, its urgent
13 February 2015
what type of business it is????????????
13 February 2015
IT WILL BE MULTIPLE LEVEL MARKETING.
Not selling any products
Not selling any products
13 February 2015
IF YOU ONLY PROVIDING SERVICE TEHN ONCE UR GROSS RECEIPTS CROSSES rs 10 lakhs then start paying servcie tax and when it crosses rs 9 lakhs file st-1 form on www.aces.com and register for service tax
13 February 2015
how i get the bank account
13 February 2015
apply for current account once u get the licence in case of prop business from local authority
13 February 2015
Thank you sir,
i have bit query as well,
1. can person operate this business on his pan n0.
2. can person operate this thru own his person bank account.
3. what are the docs are need to get the authority license and what kind authority it will be.
Thanks
i have bit query as well,
1. can person operate this business on his pan n0.
2. can person operate this thru own his person bank account.
3. what are the docs are need to get the authority license and what kind authority it will be.
Thanks
25 July 2025
Here's a straightforward guide for someone wanting to start a sole proprietorship business (like a startup) under a business name:
---
### 1. **Registration Formalities**
* **No mandatory registration** is required to start a sole proprietorship business in India.
* You can operate under your **own name or a trade name (doing business as)**.
* However, for a trade name, it is advisable to get a **Shop & Establishment License** (from local municipal authorities) or any specific license related to your business.
---
### 2. **Tax Compliances**
* **PAN Card**: Use your personal PAN card since proprietorship is not a separate legal entity.
* **GST Registration**: Mandatory if your turnover exceeds ₹20 lakhs (₹10 lakhs for special category states). For service providers, threshold is ₹20 lakhs.
* **Service Tax (Old Rule)**: Applicable only if turnover crosses ₹10 lakhs (note: service tax replaced by GST since July 2017).
* **Income Tax**: File Income Tax return as an individual declaring business income under "Profits and Gains from Business or Profession".
* **Maintain proper books of accounts** for income and expenses.
* **Other Tax Registrations**: If applicable, like Professional Tax, etc.
---
### 3. **Opening Bank Account**
* **Bank Account can be opened in proprietor's name or in the business name** (usually with “sole proprietor” added).
* Documents generally required:
* PAN card of proprietor
* Aadhaar card / ID proof
* Address proof (ration card, electricity bill, etc.)
* Business proof (Shop & Establishment License, GST certificate, or any proof of business existence)
* Passport-sized photographs
* Approach any bank with the above documents and apply for a **Current Account** under sole proprietorship.
---
### 4. **Other Points**
* You can **operate the business using your PAN**.
* You **can use your personal bank account**, but it is advisable to keep business transactions separate for clarity and accounting.
* The **authority license** depends on the nature of business and location. Mostly it will be Shop & Establishment registration from local municipal corporation or Gram Panchayat for rural areas.
---
### Summary Table
| Step | Requirement |
| ------------ | ---------------------------------------------------------- |
| Registration | No mandatory, Shop & Establishment advisable |
| Tax | PAN for filing tax; GST if turnover > threshold |
| Bank Account | Current Account in proprietor’s name or business name |
| Licenses | Shop & Establishment License or industry-specific licenses |
---
If you want, I can guide you through drafting application forms or help find specific local authority contacts. What kind of business exactly? That will help me give more tailored advice!
---
### 1. **Registration Formalities**
* **No mandatory registration** is required to start a sole proprietorship business in India.
* You can operate under your **own name or a trade name (doing business as)**.
* However, for a trade name, it is advisable to get a **Shop & Establishment License** (from local municipal authorities) or any specific license related to your business.
---
### 2. **Tax Compliances**
* **PAN Card**: Use your personal PAN card since proprietorship is not a separate legal entity.
* **GST Registration**: Mandatory if your turnover exceeds ₹20 lakhs (₹10 lakhs for special category states). For service providers, threshold is ₹20 lakhs.
* **Service Tax (Old Rule)**: Applicable only if turnover crosses ₹10 lakhs (note: service tax replaced by GST since July 2017).
* **Income Tax**: File Income Tax return as an individual declaring business income under "Profits and Gains from Business or Profession".
* **Maintain proper books of accounts** for income and expenses.
* **Other Tax Registrations**: If applicable, like Professional Tax, etc.
---
### 3. **Opening Bank Account**
* **Bank Account can be opened in proprietor's name or in the business name** (usually with “sole proprietor” added).
* Documents generally required:
* PAN card of proprietor
* Aadhaar card / ID proof
* Address proof (ration card, electricity bill, etc.)
* Business proof (Shop & Establishment License, GST certificate, or any proof of business existence)
* Passport-sized photographs
* Approach any bank with the above documents and apply for a **Current Account** under sole proprietorship.
---
### 4. **Other Points**
* You can **operate the business using your PAN**.
* You **can use your personal bank account**, but it is advisable to keep business transactions separate for clarity and accounting.
* The **authority license** depends on the nature of business and location. Mostly it will be Shop & Establishment registration from local municipal corporation or Gram Panchayat for rural areas.
---
### Summary Table
| Step | Requirement |
| ------------ | ---------------------------------------------------------- |
| Registration | No mandatory, Shop & Establishment advisable |
| Tax | PAN for filing tax; GST if turnover > threshold |
| Bank Account | Current Account in proprietor’s name or business name |
| Licenses | Shop & Establishment License or industry-specific licenses |
---
If you want, I can guide you through drafting application forms or help find specific local authority contacts. What kind of business exactly? That will help me give more tailored advice!
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