Starting a proprietorship business in India is very easy . Compliances are bare minimum. Below are the key steps :
- GST number is needed when your turnover exceeds 40 lacs if carrying business and 20 lacs if carrying services (except in some cases it is mandatory ).
- MSME Registration can be taken ,it would help you to receive payment on time from large companies as they have to pay MSME Vendor within 45 days. Plus, you get benefit at the time of taking loan in form of concessional rate of interest.
- Regarding income tax ,you can choose benefit under section 44 AD and pay taxes at rate of 6/8 percent of your turnover, until your turnover reaches 2 crore.
- You are exempted from most of the provisions of advance tax, you have to pay advance tax only in last quarter of financial year, only if tax amount exceeds 10,000.
- All you need is a current account with bank, to receive and make payments, that too is not compulsory. I have seen most of the people, managing funds in saving account in intial years.
- Shop Establishment Act registration is to be taken compulsorily to start business establishment . Details of personal employed is to be given on yearly basis .
- If you employ more than 10 persons in a year, taking registration under Provident fund act becomes mandatory.
- If you start restaurant business, then FSSAI license is to be taken along with several other licenses.
We have covered most of the legal and taxation matters relation to proprietorship business in india.
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