Hello Rodinhooders,
I have few questions..
1. How to start a proprietorship firm?
2. Any Legal formalities?
3. Documents required?
4. Tax implications in Mumbai?
5. Current account in bank is mandatory?
6. Any regulatory requirements….companies act, 1956?
7. Any concessions/incentives provided by Govt?
8. Do I need to hire CA to manage the taxes and for other relevant accounting procedures?
9. Are there any other formalities after the firm has started ?
I am planning to start a export business of Engineering Goods. I am aware of all the export formalities and custom procedures as currently I am working in a Logistics company as the Head of Sales and Marketing. Starting a proprietorship is something new for me, though i have theoretical knowledge about the same, I need to know more from the ones who have their own proprietary firms, some more insight and their experience. In search of a mentor.. Thank you
Shankar Jha
Hi, Abhijeet,
As far as I know, for starting a Proprietorship Firm, all you need is a Shop Act Lic., which will help you open a Bank Account. If you want to start a trading business, you will also need to obtain VAT Regn.
Finally, to start Exports, you need an IEC Certificate. I hope this will be helpful!
If you need furhter help, please feel free to call me on 9823014118.
regards,
Shankar Jha
Ramanuj Mukherjee
1. There are not much formalities – you dont need to incorporate like a company or even draw up a deed like partnership.
2. As usual all labour laws, tax laws etc apply to you. So you cross prescribed thresholds you would tax registrations (depends on what business you are in), and many other registrations depending on how many people work for you or what sector you are operating in. Since you mentioned you will export, you need to get IEC code, registration with Engineering Export Promotion Council, India as required under foreign trade policy.
3. No documents required to start the business as such, just open a bank account in the name of the proprietorship.
4. VAT, CSAT, Services Tax etc, income tax when you start turning a profit. Operating from an SEZ can save a lot on taxes because you are an export organization.
5. Not mandatory at all.
6. no
7. maybe, deep research recommended. Go to other engineering export businesses and ask what they are doing. If they dont tell you, go to CAs used by them. You can also ask EEPC, they are supposed to give you such information. Deep research recommended. The obvious one is to go to an SEZ to set up.
8. Yes, recommended.
9. Many things may crop up, consult a lawyer and CA when you start making a profit and start hiring people in serious numbers.
Abhijeet Jadhav
Hello Shankar,
Thanking you for your valuable reply.
I will be operating from home at initial stage so do I need shop act license?
Abhijeet Jadhav
Dear Ramanuj,
Thanking you for your valuable support.
I will definitely do the things recommended by you. 🙂