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Opening sole proprietorship firm

ritesh (Ceo and Owner) (37 Points)

12 October 2007

In India how much it cost to open a sole propritorship company.

What are the document's required.

Since i am totally responsible for any debts my business incurs.

If i land up in any legal dispute what thing's i need to do to protect myself from paying hefty fines as compensatin.

Thank's in advance for helping me out.

Thank's and regard's

ritesh.khare

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23 Replies

Late CA Sampat Jain (Chartered Accountant) (4772 Points)
Replied 13 October 2007

either it is sole proprietorship concern or a company . There is no sole proprietorship company . There is minimum formality for starting a sole proprietorship business . Under the Income Tax Act there is no specific formality . All you have to do is to obtain a trade licence from the respective state authority , for which generally you need identity proofs only. After obtaining the trade licence you can start the sole proprietrship business .You have to register under VAT and obtain other licenses depeding upon your business.

Late CA Sampat Jain (Chartered Accountant) (4772 Points)
Replied 13 October 2007

You have unlimited liability in case of sole propritorship concerns. To make your liabilities limited .........you should go for Private Limited Company

Prakash Popat (3134 Points)
Replied 13 October 2007

Vat,Profession Tax Registration,as well as trade license.Your liabilities towards outsiders unlimited.

Vijay K. Agrawal (Service) (608 Points)
Replied 17 October 2007

Dear Ritesh, there is no concept of sole propritery company in india. Minimum 3 member and i lac s of capital is required for registration under compny act. else you can have some name like ritesh kare and company. it will we sole properitor concern and you will be responsible for everything

1 Like

(Guest)

What are liabilities of Sole Prop. And of PArtnership in India? Please help. Even basic explanation will do...Sir/ Madam !!

Radhika (Company Secretary) (1238 Points)
Replied 18 March 2008

I correct Mr. Vijay's statement- minimum no of members for forming a company(pvt) is 2 (not 3)

(Guest)

I want to open a properitorship firm in Delhi. Activity to store fabric for production only. How can i start? what are the formalities ? Which office should I contact ?

Will this activity need any VAT approval?

Bhumika (Advertising and Marketing) (0 Points)
Replied 16 April 2008

Hi !!!

i am interested in opening a proprietor / pvt / public....i have read through couple of sites from the net...also after coming to this forum came to know abt proprietor ship can any one help me on public...ltd....what does all that need...??? and where to register...??

(Guest)

I need to emply 2-3 employees for my sole propritership firm. Do I need to give the employee codes / IDs?

(Guest)

I want to open a car rental company/proprietor concern. From my understanding, I can't open a company as it needs a minimum of 2 members. Pls correct me if I am wrong. Would I require a service tax or vat registration. Pls advice.

Thanks in anticipation

(Guest)

Thanks in anticipation

(Guest)

Originally posted by :CA Sampat Jain
"	either it is sole proprietorship concern or a company . There is no sole proprietorship company . There is minimum formality for starting a sole proprietorship business . Under the Income Tax Act there is no specific formality . All you have to do is to obtain a trade licence from the respective state authority , for which generally you need identity proofs only. After obtaining the trade licence you can start the sole proprietrship business .You have to register under VAT and obtain other licenses depeding upon your business.	"

(Guest)

sir/madam,

i would like to open propritorship company in bangalore. what is the formalities. what is the documents required. where is should go and register my company name.

pls. advice ME

anitha

(Guest)

Hi,

I am taking up contracting job of a project in Gujarat. What type of concern or company will be required to be formed? I will be paid by cheque and the total project cost would be around 7 Lacs, where I will be undertaking purchase of materials, labour coordination and insurance during the project period. Please also advise on what kind of registration numbers will be required as the company giving contract is public limited company.

Thanks and Regards

D Manoj