Proprietorship Registration in Chennai
Proprietorship Registration in Chennai What is Sole Proprietorship? Ans :- Business carried out by a single person and generally employed in traditional businesses. It is more of a one-man-show which is not scalable beyond a certain point. Furthermore, there is no statute or law governing its registration and functioning. How will get Registration ? Ans :- No legal procedure, you need to open a Current Account in the name of the Sole Proprietorship and establish a Trade License. The Current Account will, by default be opened on the name of the person as mentioned on his/her PAN card and therefore the bill/invoice will be issued on the same name. If you wish to change the name as mentioned, then please consult this answer. What is the Advantages of a Sole Proprietorship ? Minimal compliance. Suitable for small to medium scale businesses. No registration required, just a Trade License if applicable and open a Current Account in the name of the Sole Proprietorship. Tax friendly as compared to a Pvt. Ltd. and an LLP. Greater flexibility and ease of operations. Sole Proprietorship is optimal for freelancers as it has minimal compliance and more tax benefits as compared to a Private Limited Company/LLP. However, big corporations sometimes do not prefer working with Sole Proprietors as it projects an impression of a man-show resulting in a lack of credibility. Sole Proprietorship has the drawback of unlimited liability as well. What will be Taxation for Proprietorship? Ans :-A Sole Proprietorship is taxed as an individual on the Slab Rates applicable. What is Turnover limit for GST ? Ans :-If turnover exceeds 20 lakh then you must get yourself registered. Although, if you are tied-up with an E-Commerce platform, then you must get your registration regardless of your turnover.