Software consulting sole proprietorship guidance needed

1]. You will be required to apply for the Permanent Account Number for the purpose of your Income-Tax matters.  Also you need to apply for obtaining your profession tax number for paying PT.  if you carrying on your profession from an rented premises then you will be required to take an No Objection Certificate from your Landlord to carry on the consulting business.

2].Yes you can put any name to your firm which you like, there’s no restriction. For Sole proprietary concerns no registration is required to be made anywhere.  However you can apply for the Shop Act Licensee under your respective state law.

3].  You need not pay Service Tax until your Gross Receipts exceeds Rs.10lacs in the previous year.  After it crosses the threshold you will be required to obtain the Service Tax Registration no & collect & start paying service tax.

4].  If your gross receipts cross the threshold of Rs. 15lacs in the previous year, then from the subsequent year you will be required to apply for Tax Deduction Account number & will be required to deduct TDS on any payments made as mentioned below.  You will also be subjected to Tax Audit u/s 44AB of the I-T act & will be required to get your books of accounts audited from a practising CA

 Professional fees, Rent, Commission paid, contractor payment etc…

Starting a software consulting business as a sole proprietorship is an exciting venture! Here are some general points to consider:

1. Legal formalities typically include obtaining a business license, registering your firm, and setting up taxation systems.
2. You can choose a name for your firm, but ensure it's not already in use and complies with local regulations. Registration is usually mandatory for businesses operating formally.
3. Service tax applicability will depend on your country's tax laws and the services you provide.
4. For deducting TDS and professional tax, you’ll need to register for a Tax Deduction and Collection Account Number (TAN) and comply with local tax filing requirements.

As you're setting your business model, researching the software engineer consultant hourly rate can help you position your services competitively in the market.