SOLE PROPRIETOR: –
Sole Proprietorship concern is the simplest form of running business. In India most of the businesses running are in the form of sole proprietorship concern only. In simple terms it can be said that there is no distinction in the proprietor and the business. Whatever are the liabilities of the concern being the liabilities of the proprietor and vice-versa.
Proprietorship businesses are considered to be one and the same as the Proprietor. The PAN card of the proprietor will be used for opening bank account, obtaining licenses / registrations / certificates in the name of the sole proprietorship and filing income tax return for the sole proprietorship. Hence, obtaining PAN card for the Proprietor is the first step in establishing a sole proprietorship.
Then to start a sole proprietorship concern it is necessary to obtain appropriate licenses required under different provisions of law. For Example, if the sole proprietorship concern is planning to undertake import export of goods then registration under IEC would be required.
After completing the aforesaid steps, it is required to open a bank account in the name of the sole proprietorship concern.
As RBI KYC directives two of the following documents can be submitted to the bank for opening a Bank Account in the name of a sole proprietorship concern: –
- Certificate/license issued by the Municipal authorities under Shop & Establishment Act,
- Income Tax Returns
- GST certificate
- License issued by the Registering authority like Certificate of Practice issued by Institute of Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, Food and Drug Control Authorities,
- Registration/licensing document issued in the name of the proprietary concern by the Central Government or State Government Authority/ Department, etc.
- Banks may also accept IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT as an identity document for opening of the bank account etc.
- The complete Income Tax return (not just the acknowledgement) in the name of the sole proprietor where the firm’s income is reflected, duly authenticated/ acknowledged by the Income Tax Authorities.
- Utility bills such as electricity, water, and landline telephone bills in the name of the proprietary concern.
RegistrationBaba is willing to assist to you get start with your business as a Sole Proprietorship Concern.
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