Rs.2,999 *all inclusive

1. What is a Proprietorship?

• A proprietorship/sole trading firm is a business that is owned and run by an individual person. The owner and the business are treated one and same. Proprietor is personally liable for all business debts i.e his personal property may also be used to repay business debts.

• Proprietorship is not regulated by any particular Act, hence there is no registration. Every business needs registration under Shop & Establishment Act whether it is providing a service or dealing in goods. Other registrations such as GST etc depend upon nature of product/service.

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2. Who can start a Sole Proprietorship?

Any Indian citizen with a current account in the name of his/her business can start a sole proprietorship. Registration may or may not be required, depending on the type of business that is planned to be established. However, to open a current account, banks typically require a Shops & Establishments Registration.

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3. What businesses are commonly run as Sole Proprietorship?

Most local businesses are run as sole proprietorship, from grocery stores to fast-food vendors, and even small traders and manufacturers. That is not to say that larger businesses cannot operate as sole proprietorship, they can! Jewellery shops are sole proprietors, but it is not recommended.

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4. How long does it take to establish a business with Sole Proprietorship?

A Sole Proprietorship business does not take more than 15 days to set-up and start functioning. This simplicity makes it popular among small traders and merchants. It's also much cheaper, of course. This is the other reason why it's the most widely used business structure.

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5. What is the objective of the Shops & Establishments Act?

Every Indian state has enacted certain rules and regulations with regard to conditions of work. The objective is to secure uniform benefits for employees working in different establishments, from shops, commercial establishments and residential hotels to restaurants, theatres and other places of public amusement or entertainment.

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6. When is a Shops and Establishments Act license required?

Every shop and establishment needs to register itself compulsorily under this Act within 30 days of commencement of work. As this is such a basic license, many other licenses require this as proof of a commercial business. For example, most banks will require you to furnish it if you want to open a current account.

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7. What are the records to be maintained under the Shops and Establishment Act?

Under the Shop and Establishment Act, every business has to seek approval from Department of Labour and keep up-to-date registers regarding details of employment, fines, deductions and advances, salary and holidays. The requirements may vary from state to state. Files related to annual holidays and number of employees need to be submitted to the office of the Municipal Corporation annually.

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8. What if I wish to convert from Sole Proprietorship to Private Limited Company or Partnership?

The procedure involved is a little tedious, but it is possible. It is very common for sole proprietors to convert into partnerships or private limited companies at a later stage of their businesses.

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9. What are the requirements for starting a Sole Proprietorship Firm?

There are only two requirements to start a Sole Proprietorship Firm. First is a name for your business, and the second is a place for setting up your business.

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10. I am a sole trader. Do I need TAN registration?

TAN is Tax Deduction and Collection number which is needed if you are responsible for deducting tax at source on behalf of Income Tax Department. It is also quoted in various challans, returns etc. Not every proprietor is required to get a TAN unless it is required due to the nature of his business or profession. Our expert will advise you if you need to obtain TAN.