GST For PROPRIETORSHIP

GST For Proprietorship

To Start a Proprietorship Firm, GST Registration are required as these are necessary due to the activity the proprietorship intends to do and is common to all forms of business. A proprietor secures the capital, establishes and operates the business, assumes all the risks, hence accepts all the profits and losses, and pays all the taxes.The return of Income Tax and payment of taxes is also done by the proprietor only.

A bank account in the name of the business and entity proof is required. There is no separate pan card needed in the name of the business, the pan card of proprietor is also considered as the pan card of the firm.

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Advantages of Proprietorship Firm

Easy to Start

The Proprietorship Business can be started at will and it does not require any Formal Registration other than Shops & Establishment Registration, Professional Tax Registration, GST etc. The cost of setting up a Proprietorship is comparatively low.

Tax Benefits

The Taxable Income of the Business shall be added to the Income of the Proprietor, and he shall discharge all tax liabilities of the proprietorship business and file information in his Income Tax Return.

Decision Making

A Proprietor is the person who controls the business without any interference and there is no separation of ownership and control. The Decision Making in case of Proprietorship is relatively a fast process.

Easy Formation

Paperwork and other formalities are comparitively less. However, the sole Proprietor will still need to comply with Licensing and other Registration requirements in the State in which they are doing Business.

Time

The Proprietor has all the time on his part, which he can utilize as per his wish. He does not have to Consult or Report to any other person. A sole Proprietorship Business can be passed down to the Owner’s Heirs.

GST Proprietorship Registration Procedure

  • The Name of the Firm should be cross-checked with the Trademark Registry to avoid any infringement or passing off others Trademark or Brand name.

  • Every Business is required to comply with the provisions of Tax Deduction at source, to make payment of the collected TDS and file the TDS return, TAN number is needed. TAN is a unique number allotted by the Income Tax Department.

  • Aadhar Number enables a Unit / Entrepreneur to seek Online Services being offered by all the Ministries and Departments of the Government of India. It replaces the old method of registration of MSME by filing EM-I / II.

  • Every Shop or Commercial establishment is required to get itself registered with the Labour Department of the State Government. The Application for Registration must be filed within 30 days of starting a Business in India.

  • To carry out the Business, a Proprietor must open a current Account in the name of the Proprietorship Firm.

Frequently Asked Questions of Proprietorship

Any Indian citizen with a current account in the name of their business can start a Sole Proprietorship.
A Proprietorship Firm can be started with any amount of Capital. The Capital to be introduced in the Business is the sole decision of the Owner of the firm.
The Proprietor must be an Indian Citizen and a Resident of India. Non-Resident Indians can only invest in a Proprietorship with prior approval of the Government of India.
Proprietorship Firms do not have a Certificate of Incorporation or Certificate of Registration. The identity and legitimacy of a Proprietorship firm is established by registering with the relevant or applicable Government authorities.
Sole Proprietorship Firms cannot have any other Business Partner as is is owned and controlled by One Person only.
Proprietorship Firms have to file their Annual Tax Return with the Income Tax Department. Other tax filings such as GST returns filing may be necessary from time to time, based on the business activity performed and registrations opted. However, annual report or accounts need not be filed with the Ministry or Corporate Affairs.
Proprietorship Firms are Business entity that are Owned, Managed and Controlled by One Person. So, Proprietorship firms cannot issue shares or have investors.