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Mumbai, India
I run an IT Security consulting firm based out of India. We started off from scratch in 2001 when I was 21, and have offices in Mumbai, Bahrain, and UAE. The idea behind the blog is to share the stories of how we run the business, the deals we make, the deals that break, the heartburn, and the sheer joy.

The Ultimate Startup Guide

The Ultimate Startup Guide is an e-book that provides answers to all your questions related to starting and growing a business in India. Everything you wanted to know about entrepreneurship in India from ideation to registration to marketing to hiring. The book contains a large number of practical examples, anecdotes, interviews, and motivational material to help you get started, and to grow rapidly in a booming Indian economy. If you've got the idea, this book will help you through with the execution and realize your dreams. Here are some of the key questions you will find answered in this book:
  • When starting a business, what are the legal issues involved?
  • What form of incorporation is better suited to which type of business?
  • What tax issues are involved?
  • How do I start a business and what are the pitfalls?
  • How do I market my business in the absence of significant funding?
  • How do I get funded?
  • What are the basic accounting concepts I should be aware of?
  • What is a business plan and how should I build one?
The brief table of contents of the book is as follows:
  1. Getting started
  2. Ideation
  3. Forms of Enterprises
  4. Funding
  5. Basic Accounting and Taxation
  6. Import and Export Licensing
  7. Trademark and Patenting
  8. Rules for NRIs and Foreigners
  9. Building a Business Plan
  10. Marketing on a Shoestring
  11. Website and Branding
  12. Women Entrepreneurs
  13. Templates
To order the Ultimate Startup Guide - email me at kkmookhey@gmail.com.

Details of the book are:
Title: The Ultimate Startup Guide
Author: Kanwal Mookhey
Pages: 150
Additional: Companion CD contains numerous templates for building your business plan, calculating cashflow, preparing profit and loss, and balance sheets, preparing invoices, your resume and profile, marketing material, websites, contracts, and many other useful and motivational material.

Monday, August 21, 2006

How to start a sole proprietorship in India

I had posted earlier about the ways in which you could start your own business in India. One of them being a proprietorship firm.

A proprietorship firm has advantages such as being relatively easy to get up and running - not too many company and tax related formalities to be completed. Far fewer records need to be maintained, and compliance levels are also lower. You could start a proprietorship while still being employed at a firm, although most firms would see that as a violation of their policies, and it might even be unethical under some circumstance. You could run it out of your own home - no need to have a registered office or such-like. However, if you are running it out of a commercial place, then you need to check in with the Shops and Establishments Act. I think in Mumbai, you'd have to fill in some paperwork with the BMC.

However, the biggest disadvantage is the lack of credibility. For some strange reason, people tend to have more faith in companies with a board of directors than in sole proprietors. For the same reason it is also difficult to get loans, since you'd have to put some of your personal property as collateral. In a private limited company, you always have the option of trying for a debt-for-equity swap.

I was advised pretty early on to convert operations from being a proprietor to a private limited company. It also has to do with the fact that a proprietor is usually perceived as a small enterprise with limited capabilities to satisfy large customers. So it's largely suited if you want to get up and running quickly, and the large majority of your clientele is not likely to perceive that as a credibility issue.

As a proprietor you could be up and running the very day that you decide you want to be on your own. So just:

  1. Think up of a trade name, ensure it is not trademarked. You probably simultaneously want to apply for a trademark as well.
  2. See if you can get a .com or a .in for it and set up your website. I cannot overstate the importance of a good website, with effort spent on SEO to help you get more business.
  3. Go to your local bank branch, ask for the form they have for proprietorship firms and have that bank account ready just in case people are lining up to buy your stuff.
  4. Get some stationery printed - letterheads (actually these you can simply design on your PC, get some good quality A4 papers and print as you need), visiting cards (sigh, well, we still need these around), and if you're really moneyed, get some brochures designed and made up as well.
  5. Register for tax other than income tax. Your income from the proprietorship firm would get included into your personal income and would be taxed accordingly. However, you would be able to write off certain expenses incurred as part of running the enterprise. Do check with a good CA on what you can, and cannot, write off as an expense. In addition, you will probably need to consider:
And that's about it. So go make some money!

253 comments:

1 – 200 of 253   Newer›   Newest»
Anonymous said...

Hi Intrepid,

I have been a regular reader of your blog. Your articles are informative and to the point. Thanks for educating us about entrepreneurship. I am in dilemma now whether to quit my fulltime job. Please let me know if I can write to you offline or talk to you. Thanks again.

Regards
Kumar

Kanwal K Mookhey said...

Kumar: Thanks for the kind words! :) You don't need to ask about emailing me, I'd love to hear from you.

Anonymous said...

Gillian:hello. i have a sole propreituership company up and running. due to several reasons i would like to convert to a private Ltd company and i would like some advice to doing the same without much expense. u can email me on gillianjane@hotmail.com

Kanwal K Mookhey said...

Gillian: For private limited you'll need to first get in touch with a Company Secretary (CS). You'll need to move into a commercial space to register your firm, obtain the startup capital, apply at the registrar of companies (ROC), and also bring together two more people as directors of the company. The CS will help you put together the the articles of association for your firm, and also help out with the paperwork at the ROC.

Kanwal K Mookhey said...

Anon: Brave on you for a venture under those circumstances. Well like my post says, all you need is to open a bank account under the chosen name of your proprietorship. If your business model is primarily online, then you could hook up with a payment gateway such as ccaevenue.com or Paypal. But Paypal doesn't transfer money to Indian bank accounts, so you'd have a problem there. At this moment, I wouldn't recomment paying for trademark registration, so save up on that. Focus all your efforts on search engine optimization. See my posts on that, and also read up as much as you can. Email me if you need any more help with this. And all the best!

Anonymous said...

Hi, I am a keen follower of your write-ups and thanks for your k-capsules. I am planning to start-up a business concern mainly to route my stock-trading activity. I am also an insurance agent and planning to enter the real estate business, albeit on a small scale. Please advise me which one is beneficial - a proprietorship firm or a company - to book my expenses and save on taxes.

Kanwal K Mookhey said...

You want to run your insurance business, stock investments, and real estate through one firm? I don't think proprietorship will help save on taxes all that much. Although you will be able to offset some of your expenses, if you are really serious about your business, your best bet is to start a private limited company. You will need to bring in a couple of directors, some start up capital, locate a good company secretary and a good chartered accountant and you should be on your way. The initial stages are a bit tough, and you'll have to shell out some money in fees, but then it should be easier in terms of booking expenses and saving taxes. Don't compromise on getting a good CA. He'll save you lots in the long run. And it is very difficult to change CA's once you've picked one.

Anonymous said...

Dear Intrepid

I appreciate the work you are doing in providing people with help online. I could not find anywhere what you have put up here. I am planning to start a proprietership firm, but when I downloaded the forms from ROC website, I could not find this option. do we at all need to register for starting a proprietership firm and can we use our personal bank account to get the money in. Could you please guide

Kanwal K Mookhey said...

Rohit: You won't find anything related to proprietorship with the ROC - since it is the registrar of companies - the Private Limited and other types. For proprietorship, you'll need to register for Service Tax, but it becomes payable only if your income exceeds Rs. 2 lakhs per annum, which I am sure it will! So all you need is a bank account in the name in which you will be receiving checks, as well as the related domain name. So no other registration required, assuming you're a registered income tax payer. You can link up with Google shopping cart or Paypal for selling your products online. Or you could simply have clients wire transfer the money to your Indian bank account.

Anonymous said...

Hello Intrepid,

My company, which is a sole proprietorship is a approved vendor of a MNC company.
From past four years I have been paying my tax on my personal PAN #.

Recently I got a call form this MNC company asking me to provide them the company PAN #. I forwarded my Personal PAN # but they are asking me Company PAN #.

Do I have to acquire Company PAN # for a sole proprietorship company?

Regards,
Kisan

Anonymous said...

HI

I am Anu from Chennai a MBA graduate not from a premier B school, but a good one though. I have 2 .5 yrs of exp in the recruitment industry, but i want to start a business of my own ..not again in recruitment..but may be in conducting job/career fairs, and training. do u feel it's a viable idea??..pls reply...anumaria@gmail.com

and ya i am a female aged 24 yrs.

Anonymous said...

hello Intrepid;

Thank you so much for your very useful information. My name is saeid and im software engineer. Im planning to start my own business of Export import of some chemicals from Middle East as i have the resources.This kind of chemical is widely used in manufacturing industry, but my problem is i dont know them, i dont know their exact requirement in technical term, how much they purchase it from local market, and most important thing the amount of the usage of this chemical in India and amount of supply by other competitors. Would you please help me to get all these information? I could not email you as the link for email was showing some error after clicking on it. Please email me at saeid.hasan@gmail.com

Anonymous said...

Hi

Greetings!

I have recently stsrted a recruitment firm in proprietorship.I am wanting to know a few details
1)I have got a service tax no and also a current account in bank.Do I need any other legal permissions etc
2)how often n how is service tax filed.I beleive theer is an exemption of 3-4 Lakhs etc wnat to know how it works
3)If I hire people what are the deductions in their salaries I have to make like professional tax, PF, tds etc and how are these deposited with govt
Will remain thankful if u can guide me

Regards
Siboo

Anonymous said...

Hello,

I have recently started a sole propertiship company. My nature of business is purely IT services to USA clients. I will be directly billing the US company.Is there anything specific i need to do other than getting import export code. Also is there any limit on withdrawing money as salary from my current account. If i with draw money as salary will i have to pay tax on salary as well as company.

Thanks for your help in advance.

BSP

Anonymous said...

very basic question;
1 - I select "boringxyz" as a trade name. I will not register it at this time.

Can i just start business say offering services without informing any govt. agencies?
or
I need to at inform - at least one govt. agency to make it legal?

I want to start and start soon, I have thought of a name too, but not sure if I need to complete some formalities before i can start my own business so its legal?

Anonymous said...

Dear Friend,

I appreciate very much your wonderful & great blog.

This one page strategic paper is very easy & simple for understandable to mind.

My best wishes to your power of simplification …..

Warm regards & Thanks
Ajay singh Niranjan

Anonymous said...

Hi,

You have made clear pretty much the things I had to ask about a sole trading concern. But here are a few that I need to.
a) Can I have a current account (as the sole Prop)in my name but have an operational business name for website/visiting cards etc. Is it mandatory to have the name registered?

b)Am I allowed to make investments as a STC. If yes to what extent?

c)Would taxation be the same as an individual capacity? What exemptions would be allowed?

Looking forward to your reply.
Thanks
VC

Balaji said...

hi,
this is Balaji, and i wud like to know what are the formalities that i shd do to open an institution cum consultancy as a sole proprietorship. and i have also decided to open a website. in order to restrict others to use my company name, what should i do.. since we are not registering cos of sole proprietorship, how can we restrict others from doing this??

it wud be very much helpful, if i get to know abt these information...

Anonymous said...

Hi,

I am planning to set up proprietorship company in delhi/gurgaon. Pls suggest me the procedure to follow the same. Pls mail me at singhai1980@yahoo.com

Regards
Mayank

Kanwal K Mookhey said...

Everyone: Thanks for your wonderful comments! And apologies for not being able to reply to your queries here.

I am building an FAQ, based on the questions asked here, and will reply to all of them there - focused on proprietorship...

Unknown said...

Kindly if somebody let me know, if I start a proprietorship company can I engage in Export as well as local sales in India.

Also the formalities of the same. and can I start at my house itself keeping a one of my room as office.

Kindly mail me asap at dariusind65@gmail.com

Anonymous said...

hello..
i want to start a website designing n development company,what is the consequesnces if i dont regiester the company...hw do i manage tax in that senario...i will be working from hope n most with a group of 3or 4..plz help n advice..plz contact
on c_programer@rediffmail.com

Anonymous said...

Hi intrepid,
wait for sometime, i will recommend your name for the best social service award...yes, true..
i mean, i just want to say that you are doing a wonderful job.
usually, people consider it waste of time, but only i can understand the value of the info you provide here at this space. for last few months, i wanted to start a business with a proprietorship company but was not sure about the registration of trade name. i accidently visited this blog and i got the info which i wanted.

Thanks

Tushar
mailfromtushar@yahoo.com

Anonymous said...

Hi,

My husband is owning a sole proprietorship company where his nature of business is into servicing, like imparting HR outbound training activity and Adventure activity oriented programme to all major IT corporates. He has four employee and during the training programmes, he will have instructors and trainners enjaged on the job on day based payouts. He has is office in a commercial place and has separate current bank a/c's for business purpose. His company has service tax no. and also the PAN no. and they have been paying the service taxes every quarterly. The comapny has its own logo and name. The company name is CAPTURE.

Now, this sole proprietorship company needs to be changed into privated limited company. Please guide us what all the documents to be done to convert as PVT LTD firm. Also guide us HOW CAN WE RAISE FUNDS FROM PUBLIC IN THE FORM OF STOCKS AND SHARES ???

My email id is leelasr@yahoo.com and my mobile no. is 9880083404 and i am writing from Bangalore,Karnataka.

Anonymous said...

Hi Intrepid
I am currently working at a Pvt ltd co. and m starting my own propreitership firm from my home. Its a services business where i would be launching my first portal soon. I have acquired a gumaste license. kindly inform me about the other requirements specially relating to taxes. Do i need a seperate pancard for the firm and besides registering for the service tax which other taxes do i have to pay.
Regards
Buddying entrepreneur

Anonymous said...

Really useful & Helpful....Thanks for the info! - Murali, Hyd.

Anonymous said...

hi...

thanx 4 d info...its a gr8 site n very informative

Anonymous said...

hi
please help me with trademark registration as i am not able to create new account. it asks for user code.

Anonymous said...

Hi
I have just registered a firm with 2 partners(proprietorship).As this is going to be a recruitment firm for recruiting personnel from India and placing them in Australia I am wondering if I need to register with the External Affairs Ministry or not.
I will be opening a current account with a local bank and will apply for a trademark too in a couple of days. If there is something else I need to do please guide me. your advice will be appreciated sincerely.
Gerard Joseph

Sur Max said...

Thanks for sharing this info. Quite useful. A few days ago I started a Proprietorship Firm (a software development firm, the website will soon be online) and the biggest trouble I was facing is getting the "current account" in bank as they needed either a cheque from any other current account of the firm or an introducer holding a current account in their bank. I had nothing !! Whats then ? ... feeling like hell !! I then asked, how you opened the first ever current account ? as there must have not be any introducer...ha ha ... they were spell bound !! Finally somebody helped me in arranging the introducer from his personal contacts and it worked for me.

Moral of the story : Having great links is one of the great keys to have successful business... Help others, have good relations, have good links, use links to get help and have a successful business.

-
sur
http://expressica.com

Anonymous said...

HI,

My younger brother has started a recruitment agency and still have not reguister. we would like to be a sole propritership.. now what i want to know is, if he has his own name to the company will there be any problem or we will have to have a name? and also should we have a seperate PAN No.

Kindly advice.
thanls

Anonymous said...

HI im very bored and tis is soooooooooooooooooooooooo cool it has lots of info for my business project!

Anonymous said...

Hi there...

Guess i have reached the right place fro some early advise. would like to discus a few issues with u. kindly mail me on gambhir.jatin@gmail.com, else kindly mail me ur mail id and i will shoot a mail with my initial queries.

Thanks for ur help.

kaay said...

Thanks for the info. I just have one doubt to clarify . I am trying to start a subscription based website on a very low budget ( i mean very low ) . Can I do it under a sole propertiorship . After it picks up can I then change it to A pvt limited company .Also are there any specific laws that pertain to subscription based websites in india .

zanza said...

Hi,
I am planning to start a service based company under sole propertiorship.I have a basic ques. Can a prperitor draw a monthly salary or profit itself becomes his monthly income..?

Unknown said...

Dear Sir

Is there a compulsory to buy a land for starting a business of a pvt. ltd company. and is it that properietorship firm is much helpfull or pvt. ltd

i want to enter as a huge player in export field

Anonymous said...

Hello sir... i found some valuable informations about the sole propritership firms... its a great work from you... i have one question to ask... i wish to training institution under sole proprietorship.. can i issue certificates to the students that they have got training from me?

Bala Iyer said...

Dear Sir

Thanks for your insightful comments about running a proprietorship firm. I intend to run a small business from my home in Mumbai - an online e-commerce website to sell consumer products. What sort of licensing/legal permits would this require? Some of your earlier comments suggest that the business need not even be trademarked. But I suppose it must require some form of registration or legal authorization. Could you please share your thoughts on this?

Thanks. I truly appreciate your help.

Regards
BeWell

Kanwal K Mookhey said...

Bewell: Trademarking is a good idea, if you really have a revolutionary idea or a cool brand name under which you are doing business. In the 6 years since we've been doing business, we've not had a single instance of someone misusing our brandname (NII Consulting), but we sent in a trademark registration request last year, and it's still ongoing.

If you're in Mumbai, you need to get a license from the BMC under the Shops and Establishment Act. Just locate your nearest BMC office, and they'll help you out. Don't go through touts, do it yourself. Also get a rubber stamp made in that name, which says
For YOUR PROPRIETORSHIP NAME

[You sign in this space]
Proprietor

Anonymous said...

wat about chennai . are there any registrations to be doen and how much would it normally cost

kaay said...

wat is a bmc is it applicable for chennai

Anonymous said...

Hi,

Your site is really wonderful and provides lot of useful info about starting a business in India. I am a Indian citizen settled in Thailand. I am planning to set up either a sole proprietorship or partnership company in India for starting some export-business to/from India. In this regard could you please let me know the following:

1) As a NRI how can I set up either a sole proprietorship or partnership company in India?

2) What will be the tax implications and will I get any tax benefits as a non-resident?

3) Is there any kind of registration of any kind involved in formation of such companies?

4) I do not have a Indian PAN no. Do I need one for setting up the company? If so then can I get it online?

Anonymous said...

Hello
Its a complicated case, I was part of a US based company for nurse staffing, they had nobody here to rely on so they made me the director of the company and we formed a Pvt Ltd company, all the funds came from US, I was actually an employee of the company, however a director on papers in India, now I have left the company but there are no additional directors who can fulfill my position so they havent even informed ROC about my resignation, as you know, there should be atleast two directors in the company, I know the liabilities are still on my head, but even if I inform ROC mysef then the company would be desolved as there wont be sufficient directors then also the liabilities will remain on my head, the second director is in States. I am in terrible situation, please assist the best possible way to get rid of these liabilities.

Kanwal K Mookhey said...

All anonymous: I cannot respond to anonymous queries on the web, since I cannot share details of lawyers, company secretaries, and chartered accountants who could help you out. Also, most anonymous queries do not contain enough details about your problems. So please just email me on kkmookhey@gmail.com, and in my own while I will be able to get back to you with some useful responses.

Amit said...

Hello,
Its nice to have a helping hand like yours when someone like me gets struck with so small issues concerning small business.

I have started a Proprietorship after using your inputs form the website, I wish to to get into recruitment and placement business for Medical sector where we'll be providing Nurses and other experts from the medical field to Hospitals and Healthcare Facilities

My question is, can I start a consultancy to place nurses and other professional by being only a proprietor or I need to acquire any other certificate, or any other registration.

I have taken accounts with Job portals and I have also got a couple of websites.

Please suggest me what to do next.

Thanks
God Bless

Amit said...

Just to add one more question please,
Do I need to register as a Nursing Bureau to start nurse recruitment and placement service.

Regards
Amit

Kanwal K Mookhey said...

Amit: I am not really sure if you need any further 'registrations' of an official nature. But it would sure help to take up memberships of any associations that are specific to your industry and your line of work. If you are in Mumbai, you may have to register with the BMC to obtain a Shops & Establishments Act License. Rest is cool, and wish you all the very best!

Anand C.V said...

Hi Intrepid,

Your blog is really useful ! Thank you very much for sharing this info. It helped me a lot in understanding how to open a sole propritership.

Anand

Anonymous said...

I manage a website & want to publish ads. I'd like to open a bank account in my business name. Now which should I do first? Open a current account with bank or register for service tax as sole proprietorship firm? I understand both need to be done, but in which order? Pl. advice.
Thanks in advance

Anonymous said...

Hello.

I have a sole propritorship, and earning revenue since Mid 08. All my income is in USD's as I profide consulting services.

Now this might sounds strange !!! I have a current account, under the company name, but DONT have any kind of govt registration at all. Is that a BIG concern, or something that can still be taken care of? Obviously, if I don't have any registrations, I haven't paid any taxes yet.

Please advise, as to what should be the best course of action for this.

Also, I would like to know the wider range of expenses that you can show, to save taxes.

Thanks Much.

SK.

Unknown said...

Hi Intrepid,

Please share the FAQs you are preparing or you have prepared on this topic. I am a new visitor of your blog & found it quite useful. My email id is teilzeitarbeit@gmail.com

Thanks alot for helping us.

Best regards,
Saurabh

Crazy said...

Hi Intrepid,

I want to a matrimonial website, I stay in India, Mumbai.

I have full support from my colleague, any they put up to me as properiatorship or as a partnership firm.

I am starting the business from my home itself.

Can u give details of investment with comaparisons regarding regitring properiatorshir and a partnership firm

I dont know know, which should I go for, as the money plays a major role.

Thanks,
Venkat

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Anonymous said...

Dear Kanwal Mookhey,

Good job!!! Look what you started and how many people you already helped. Its amazing to see you finding time to share your experience and help others. Hats off to you!

Best wishes,
AM

Kanwal K Mookhey said...

Hey AM,

Thanks for the kind words! Makes me want to get back to posting more on the blog - have been away for quite a while.

Cheers,

Kanwal

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Gary said...

Hi Intrepid,
I am planning to start an online auctions website and for a sole proprietorship firm for it. All the products on the auction will be purchased by me from differnt shops by paying VAT. and all other taxes. So when I sell a product online and make a profit, what taxes will I have to pay? Also do I need ro register for service tax or something of that sort?

Anonymous said...

hi,
i am a software engineer , and i want to start a commercial portal that will provide mainly two services
1. provide service to small firms to like website development and other online support services by charging some fees.

2. some free services general internet user like chatting etc.
so i will earn by ads .

my main Questions
1. can i do it legally with parallel to my full time job.
(please give ans of this q in detail and according legal laws of India ,or any government web link will be appreciated )

2.is it necessary for a portal that it have a registered name and offices
means is there any difference between a firm(company) or commercial portal

Unknown said...

Hi

I am having an experience of 8 yrs in a firm in service of printers of any company like HP Cannon etc I even do refilling of toners but my qualification is SSC pass I am planning to start a sole proprietorship firm for it can I start the firm ? & if yes then I am having following queries;


•Can I operate from my home? i.e. can register with my resident address
•How do I get the registration certificate from the income tax?
•Do I require any capital to start the business? If I don’t have any capital can I start a firm?
•If I have not filed my personal return even once can I register my firm?



Looking forward to your reply.

Thanks
Khan

Kanwal K Mookhey said...

Hi Afreen, the answer to almost all your questions is yes. So go ahead! For prop, you don't need any income tax registration. Ensure you are registered and have a PAN number. Then the profit from the prop will come into your account as taxable income.

World Traveller said...

Dear Kanwal,
I read your blogs about sole proprietor and I found them very helpful and educative. I thankyou putting all this stuff online. I want to start a home based export firm and I want to open a current account. But I am told that I would need a registration or something like to have current account in my firm name. Since it's home based company I cannot have shop & establishment license from municipality or any registration. So, what could be done in this situation, I would be really grateful if you could guide me to right direction.
Thanking you again,

Sincerely,

Tushar.

Anonymous said...

Dear Interpid,Your advices are highly informative.
about me,I am working in kuwait,Originally from Inaia,Kerala.I'd like to export from India.Please advise.
1.What are the formalities?
2.Where can I get the applications?
3.Can I complete the formalities being Kuwait?
regards
Jackson.

Anonymous said...

Hi Kanwal
I'm from Pune and have started a travel agency (sole proprietorship) - domestic and international holiday packages and hotel bookings - I have got a Shop Act license done.
I want to open a bank account with HSBC because they are the only ones who have a zero balance current account and also I might get business in other currencies.
The questions I have are -
1. Being a lady do I get any tax exemptions.
2. The bank has said they need 2 proofs of business - the 1st being Shop Act, the other could be Professional Tax or Service Tax. Could you enlight me on these 2. Which one would be mandatory, after how much amount of business I would need these. What docs would I need for these. Which one will allow me to save more money. Would I also need to fill up anything for Income tax.
3. ANy other legalities involved in this.
Your help will be really appreciated. Thanks Pallavi

VS said...

intrepid,

thank you for a wonderful blog, and the follow-up comments to your readers. i know it has saved me a number of hours of research. :)

i sooo wish we had some kind of a meetup for people interested in startups, or even some kind of an active facebook or orkut community :)

anyways, i'm a technical writer in the IT industry, and i plan to go into the business on my own. i'm going to wait for a few months till i get all the necessities in place - a business strategy, good contacts for starting a customer base, registering a domain, logo, etc. and i'm yet to understand how you do business with foreign companies.

it's going to be super heady, i'm sure. and maybe i may decide the hassle is not worth the risk and join a company as a permanent employee (i sooo dont want to do this, really hope things work out.)

i got answers to a lot of basic questions i had in mind, but tell me something: how do you manage to take vacations when you are the sole proprietor of a company? how do you delegate tasks and keep your sanity at the same time? :)

reg,

v

Anonymous said...

sir please let me know on registering a partnership firm in stock advisory business...when i enquired in a bank for account opening in firms name they asked me to get a return filed which i have never done....thanx in advance

Raindrop said...

Hi...I wish I had chanced upon your blog earlier....very nice n useful....maybe you can stress upon the importance of having at least two govt. documents which have ur company name on it solely for KYC purposes(people generally make one as its easier to pay taxes under ur own name)....I went through a traumatic experience coz I have only one n the bank closed my account without as much as calling me (they kept sending KYC mails at my defunct address even though they send me all other correspondence on correct address).

It will help people from the shock they get when they receive a closure cheque in mail.

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Hello Sir,

I have been planning to open a sole proprietorship firm and this article of yours has certainly helped me in getting more clarity.

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Hi,

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Hi,

I wish to start a properitorship co. as a sole propritor to sell IT softwares for third party. What wud be the easiest way to avoid legal formalities.

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respected sir,
i want to open a soleproprietorship company in india and i am 19yrs old.what procedure should i follow pls sir email me at.singh.kannitomar@gmail.com

Archana Sunil Kumar said...

Hi,I display and sell my art work(predominantly home decor pieces like custom made nameplates, vases, handpainted mugs and other paintings) through shops in MUMBAI and through online shopping portals. My husband is in the government services and has a transferable job. i tried registering my firm by applying for service tax(though i do not come under the taxable limit). i categorised my work as Business auxiliary services. But now my application has been rejected since i stay in govt qtrs and it cannot be used for commercial purposes Can i register my firm with my parent' s permanent address(in CHENNAI), since i have got my PAN card under the same address. i am also having difficulty opening a current account in my firms name since i dont have any document in my firm name" Arcsun". i am not able to enter into agreements with prospective clients since they need a registered sole proprietor. Any other alternative?All i am looking for now is a legal identity for my sole proprietorship along with a current acct in my firm's name. pls help. Also, for my kind of work " sale of goods" will be applicable or "service tax?"

sudhir said...

i am keen to know the formalities about opening a new properietry firm as executive search firm.

pl tell me formalities related to service tax or any other government formality.

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hi,
I am ashish from Bangalore. I want to start my business in service indutstry. and i am going to operate it through my laptop, so office space is not required for me. i will give the service online...i will get paid online...and i will send the invoices online...and all this i can do sitting in my bed. So i want the business name current bank account. how can i get it. what is the processa and what are therequirements?

I am waiting for your kind reply.

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Hi this is Puneet. I want to set up a sole proprietorship firm. The nature of business will be third party re-seller for corporate gifting solutions. We will be having a client base from which we will understand their gifting requirement and we will be having a vendor base which will provide us the best options qith best quotes which fits into my cleint req.. in a nutshell I as a company will be providing my client a complete corporate gifting solution.Please let me know the step by step procedure of setting up such a firm.

Unknown said...

Hi,

I am planning to set up a sole proprietorship firm. But my concern is I am based from Gujarat but I want to work in Mumbai. So how do i get my Registration done for my firm, Can i do it with my Permanenet Home Address from Gujarat and still work in Mumbai. In addition, where do i apply for service tax registration and what is the cost for that?

Ramiz.A.Momin said...

Sir, I am a chemical Engineer with 3 years of exp. I have a plant to start my Chemical Engineering Consulting and Software solution firm. My current employer policy doesn't allow me to do business. Can i register it on my wife's name? Can i transfer it to my name in future? Will i have to register the company in my city(Baroda, Gujarat)

Thank you.

Anonymous said...

I run a sole proprietorship company in the name of my wife.
we are into recruitment / placement business.

wld like to know if we are supposed to cut TDS on the payment made for e.g. purchasing database from the job portal sites etc?
please let me know.

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Anonymous said...

Sir,I am opening a website based propreitary firm donot know the proper steps for establishing it legaly with a virtual office.Would like some assistance.thank you

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Sir,

I would like to start a venture, I have an idea of start a snack corner I just have the idea with I don't know about the proper steps to be carried for starting it, the legal issues behind it I would lke to hv some assistance in this regard

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Hi Intrepid,
I want to start my own online retail business on the lines of Flipkart in Delhi. I have a PAN No. & a savings bank a/c in SBI but with the addresses of Jamshedpur, my home town. As of now i am working in a small media agency and living in a rented accomodation in Delhi. So what are the formalities that need to be completed and how can i start my business from my rented accomodation in delhi. Do i also need a VAT or service tax reg.?

Will be very grateful to you if you could help me in this.

thanks & best regards,

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Hello sir,

I want support my family. as I'm not employed, i want to start a business (online store).I'm also operating it from my bedroom computer. I dont have any office. have not complited any legal formalities. because lack of money i've planned a very small scale. what are the minimum formalities i need to complete. & because i dont have any office , office phone, etc. am I be able to open my current account.

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Hi Kanwal

It always feels great to find people like you on the web. Your help is invaluable & I completely appreciate your effort in writing this blog.

I am planning to start an Online business which will be a sole proprietor form of organization.
I need your advice with regards to the following points.

1.Is it legal and advisable to keep an unregistered name for one's firm? (esp if one expect the business idea to grow popular in future).

2. How do I register a name for a sole proprietorship based firm? What is the procedure like? Can I apply for it online?

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Hi Intrepid,

Great information. Really appreciate the time you take to answer the flood of querries; there are many successful people, but very few like you who take time off to help others become succesful.

I want to start a sole-proprietorship business of security solutions such as CCTV and other electronic security systems. I shall be procuring the products from distributors and installing at clients' premises.
I shall be running my business from my home (which is in my father's name). My questions are:
1. Do I need to register with Shop and Establishments authorities?
2. Do I need to pay service tax for this type of business?
3. What are the books/records I have to maintain for running the business with respect to VAT, Income Tax etc.? What are the records of my sales etc.?

Thanks in advance

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hi i want to start a small business. which is best option sole proprietor or partnership firm (with family member

thanks.

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Dr Purva Pius said...

Hello Everybody,
My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of S$250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of S$250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius,via email:(urgentloan22@gmail.com) Thank you.

BORROWERS APPLICATION DETAILS


1. Name Of Applicant in Full:……..
2. Telephone Numbers:……….
3. Address and Location:…….
4. Amount in request………..
5. Repayment Period:………..
6. Purpose Of Loan………….
7. country…………………
8. phone…………………..
9. occupation………………
10.age/sex…………………
11.Monthly Income…………..
12.Email……………..

Regards.
Managements
Email Kindly Contact: urgentloan22@gmail.com

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