There are many advantages of setting up a proprietorship company. These include low costs and a lack of income tax on incomes below Rs. 3 lakhs.
It is also simple and quick to set up. However, it is essential to understand the requirements before you choose to set up a proprietorship company.
No Income Tax on Income under Rs. 3 lakhs:
The main advantage of a proprietorship is that there is no income tax to be paid on the business’s income, which is beneficial for a trader earning up to Rs. 3 lakhs per year. Unlike a limited company, a sole proprietorship is not a legal entity and does not have to be registered under the Companies Act. Besides, it does not have nominee directors. Moreover, it does not have to register with the government for a bank account.
It is also beneficial for a Sole Proprietorship Register in Bangalore because the company’s income is not taxable unless it exceeds Rs. 3 lakhs. The proprietorship company is required to file an annual return to the government. The return must be acknowledged within 120 days from the date of receipt.
Proprietorship Process:
The proprietor can file the income tax return online or by manual filing. He should print two copies of Form ITR-V and sign them. He should then send the signed copy of the form through ordinary mail to the Electronic City Office and retain the other copy for his records.
If a taxpayer has several business verticals, he or she need not register separately in each state. If the taxpayer wants to register in different states, he can do so under different names. However, if one of the verticals changes, the new proprietor or successor will be liable for income tax.
There are certain provisions for claiming the tax exemption on income below Rs. 3 lakhs with proprietorship company registration in Bangalore. One of these exceptions is the MAT credit. The MAT credit is the amount paid over and above the normal tax liability and can be carried forward for 15 years.
During the financial year, the proprietor has to file his or her income tax return. The total income from the business is then computed by checking the receipts and deducting business expenses. The proprietor can also claim interest from the bank and pay salary.
Low Cost:
One of the easiest ways to incorporate your business is by registering as a sole proprietorship. A proprietorship is a business in which one person is the legal owner and responsible for all of the factors of the business. In India, proprietorship company registration is relatively simple and does not require a large investment. However, you should ensure that you get a PAN number and positive licenses before you can proceed with the registration process.
The benefits of registering a sole proprietorship company are many. As a business owner, you can name the company anything you like. The only limitation is that you must be sure that the name of your company is not already in use. This way, you can protect your brand and keep costs down. Another great benefit of starting a sole proprietorship is the lower taxes you’ll pay.
Process:
A proprietorship can be set up with a small investment of as little as Rs. 10,000, or as much as a lakh, depending on the type of business you’re planning to start. If so, make sure to have a lease agreement in place and a letter of approval from the landlord. Then, you’ll be well on your way to starting your own business in Bangalore.
The advantage of a sole proprietorship is that it requires minimal registration. It’s possible to register a business with a sole proprietorship in as little as 15 days. It’s the ideal business structure for small business owners and merchants. Unlike a limited liability company, a sole proprietorship has unlimited business liability.
When it comes to registering a sole proprietorship, the first step is choosing a unique name. A proprietorship name should be unique and not infringe on any trademarks or registered company names. A good way to check this is by visiting the IP India portal. If your business name already exists, you should register it as a trademark.
A sole proprietor can also submit any other licenses or certificates issued for a sole proprietorship, such as a labour license, mandi license, police department permission, or sales tax registration certificate. Other required documents include a GST registration certificate, income tax returns, and a registered office proof.
Easy to Register:
The process of registering a sole proprietorship company in Bangalore is straightforward and quick. The process starts by obtaining a license from the state government under the Karnataka Shops and Establishments Act. The next step is to apply for a local municipal body license for the business. Many companies in Bangalore offer assistance in registering a company. For more information, contact Neusource Startup mind India Limited (NSET), one of the fastest growing organizations in Bangalore. You can also use MIBook Accounting Software to registrate.
Once you have decided on a name for your company, you must register it with the corresponding local authorities. In states that require professional tax, you will also need a PT registration. You must also provide an NOC of your premises in a prescribed format.
In order to incorporate a proprietorship company in Bangalore, you must have two persons – one person will be the director and the other will be the nominee director. The nominee director will be responsible for managing the company’s operations.
To register a sole proprietorship company in Bangalore, you must spend around Rs. 10,000. In some cases, you can also use a rented office for your new business. Ensure that you have an NOC from your landlord before you start the registration process. If you do not have the funds to purchase an office, you can rent one.
Apart from this, you must have an Aadhar card number and a PAN number. This information is essential because you need it to interface with the government and file Income Tax Returns and GST returns. For self-owned properties, you will need to provide proof of utility bills. If you do not have any of these documents, you may not be eligible for this form.
Besides the incorporation process, you must also register your business with the local Municipal Corporation. This will help you establish your business’ identity. This unique identification number is provided by the Ministry of MSME.
