Starting a Proprietorship in India
Starting a Proprietorship in India- Individual property is one of the oldest and most common forms of business in India. Property is a business entity owned, managed and controlled by one person. Property is very easy to get started and has very minimal regulatory compliance requirements. However, the property does not offer the owner/property a total of other benefits such as limited liability, independent existence, portability, etc., which other types of business entities such as LLP and Private Limited do. In this article, we look at the surrounding processes starting with ownership.
Starting an individual property requires no legal formalities or registration. However, business licenses must be obtained as required by the state / central government and tax registrations. Moreover, in case the business name is unique or brandable, it is recommended to register the brand.
Business licenses must be for any business, regardless of the type of business entity. For example, if you are a doctor, you need a license to practice from the state / central government; proverbially, the restaurant requires a food business operator license from the Food Safety Standards Authority of India. Therefore, it is important to understand the regulatory framework surrounding the activity you wish to undertake in ownership and to obtain relevant licenses from the relevant local, government and central/legal authorities. Examples of business licenses include:
• Food business operator license – required for companies dealing with food
• Broker’s license – required to work as a customs broker
• Security agency license – required to provide security services
• Shopping license and construction – required during the operation of shops and commercial establishments
Depending on the type of activity that the landlord will do, tax records must be obtained from the relevant tax authorities. Some tax registrations that will be required for ownership include:
• GST registration – required according to GST turnover limit based on the type of work
• Professional tax registration – required for companies that employ professionals
• ESI / PF-registration is required for most companies with employees
Registration of trademarks
There is no registrar or ownership record in India. Therefore, ownership may normally be operated under any name, as long as it does not conflict with any trademark registrations and / or does not conflict with other rules and regulations. Therefore, if you want to invest a large amount of time and money in ownership, or if you must use your business name exclusively to identify goods and services arising from your business; it is recommended to obtain a trademark registration.
Open bank account
Opening a bank account in the name of a property company is one of the first steps after opening a property, to open a bank account in the name of the property, and the following two documents are required in accordance with the RBI standards to know your customer (I know you):
A certificate/license issued by the municipal authorities under the Law on Shops and Institutions,
• GST registration certificate
• The registration / licensing document issued in the name of the Royal Authority by the central government or the authority/administration of the state government.
• IEC (importer source code) issued to the property concern by the DGFT office as an identity document to open a bank account.
• A license issued by the Registrar such as the Certificate of Application issued by the Institute of Chartered Accountants of India, Institute of amount Accountants of India, Institute of Corporate Trustees of India, Indian Medical Council, Food and Drug Control Authorities, etc.
To know more call us at +91-9717070500 or send us an email at firstname.lastname@example.org.