Welcome to MyOnlineCA Legal Guides Lesson 2. In the previous lesson 1,you learn about the Overview on the Sole Proprietorship Firm.
In this lesson we let you know about How to Register a Sole Proprietorship Firm in a simplified manner. So Let’s understand in FAQ Manner which is based on 1000+ Startup Questions & Analysis –
a) Sole Proprietorship Firm Registration Depend on Type of the Firm or Business ?
Ans : Yes, it depends on the nature of the business so we can divide the business into the 2 categories –
- Service Based Business
- Product Based Business
Service Based Business : – Under this category of the business its cover the following type of the business-
- All type of IT related Services.
- Software or Consultancy related business.
- HR or Manpower related business.
- Educational or Marketing related business.
- E-commerce Marketplace Platforms
- Any Service based App or Website
- Any other type of all Service-based Business.
Product Based Business :- Under this category of the business its cover all the following type of the business –
- Trading of the Physical Products like Purchase from Wholesale or sell into the retail.
- Distributor of the Physical Products
- Sell on Flipkart or Snapdeal or other Ecommerce Platform
- Cover all another type of the business which included any physical product of the business.
b) What is the Ultimate Objective of Sole Proprietorship Firm Registration ?
Ans : Ultimate Objective of any type of the Registration only to open a Business Current Bank Account which is on your Firm Name. so Bank is asking for the Legal Certification on the Firm Name which is required for the bank account.
c) What are these type of the Legal Certification for the Banks as Sole Proprietor ?
Ans : These Legal Certifications are following Certification as per the RBI Guidelines –
- Service Tax Registration Certification – (Don’t Consider 9 lac INR Limit, Reason mentioned in the Lesson 3)
- VAT/CST or TIN Number & Certification
- Shop act License
- MSME Registration Certificate
- Chartered Accountant Certification
- Income Tax Return on the Firm Name.
- TAN Registration on the Firm Name.
So in the most of the cases bank always asking for the Minimum any 2 Legal Certification to open a current business bank account which is mentioned above.
d) Means, Sole Proprietorship Firm have no Separate Certification of Registration ?
Ans : Yes, Right Sole Proprietorship Firm have no separate certificate for the registration. As discussed in the Lesson 1 Sole Proprietorship Firm always need only the One Tax Registration or any other Registration in Act. if have no idea about the difference between tax or business registration then refer the Lesson 1 in legal guides.
Summary Point on this Lesson –
a) Sole Proprietorship Firm Ultimate Objective is opening a current bank account.
b) Banks required minimum any 2 legal certification which is in the firm name.
c) Choice of the Legal Certification depends on the nature of the business.
d) Sole Proprietorship have no separate registration for the firm. It’s required only the tax registration.