So, planning to start a trading business? It is very easy.
Below mentioned documents are required for starting a business in India, in form of a proprietorship concern.
PAN Number
A PAN is a unique identifier issued to all judicial entities identifiable under the Indian Income Tax Act, it is required for any person having basic income source.
Once you get the PAN number you will have to keep a trade name for the business, Eg. M/s Umang J & Associates or let’s say ABC & Co. etc.
Trade License
A trade license is a document/certificate that gives permission to the applicant (person seeking to open a business) to commence a particular trade or business in a particular area/location.
It ensures that the business or trade is carried by adhering to all the standards of safety as issued by State Municipal Corporation. (It merely takes 30 min to get it in the state of Assam)
Bank Account
Once you get the Trade license, you will have to open a current account, (It can be easily done with the help of your PAN and Trade license, It might take 1-2 days to open it, varies from Bank to Bank )
(Note: For above you will need a business address, so make sure to have a Rental/Lease Agreement or NOC in your business name)
Registration Certificate under the Shops and Establishment Act
Once the Business has started you will have to apply for Registration Certificate under the Shops and Establishment Act of the state in which the business is located, this has to be done within 30 days of starting the business. (It merely takes 3-5 days to get it)
After this, you are good to go.
There are a few other Registrations required (which are optional or mandatory depending the on circumstances) which are as follows:
Registration under Goods And Service Tax Act
It is required when your turnover in a financial year crosses Rupees 10/20/40 Lacs* (as the case maybe), so once your cross the limit of Rupees 10/20/40 Lacs (as the case maybe) you will be compulsorily required to take registration as a taxpayer.
*Note: The turnover limit varies from state-to-state basis and also on the nature of business activities undertaken.
Registration under Udyog Aadhar
This is not a compulsory registration, but a recommended one, so once you register in this, you get benefits of loan with no collateral and other benefits from government.
FSSAI Registration
Mandatory in case of business is related to Food Industry.
Import Export Code
Mandatory in case Business is involved in Import and Export of Goods or Services.
All of the above can be done within 15 to 20 days.
Once all of this is done, the compliance of starting the business legally in India is done.
Wish you all the best with your new business.
After the business is started you will have other compliance activities to be done with respect to Renewals of the above licenses, Monthly fillings and Annual Income Tax returns and Audit.
We hope the above blog was helpful in enhancing your knowledge on the matter. In case of any queries feel free to get in touch with our team of experts.
Quote of the day:
“If you do what you've always done, you'll get what you've always gotten.“
- Tony Robbins
Regards
CA Umang Jain
+91-96323-32850
umang@caumang.com
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