A sole proprietorship firm is the easiest form of business that anyone can establish. Unlike limited liability companies, there are very few statutory requirements that you will need to comply with during formation and running of the firm. You only need to choose a suitable business name, obtain the requisite licenses and permits, prepare a business plan, and have a bank account.
If you are interested in establishing a sole proprietorship firm, then you should come to us. We have expertise in the formation of sole proprietorships and other forms of business organizations as well.
Choosing a Name
You should consider choosing a name that people can easily remember. Additionally, the name should be associated with the type of business activity that you wish to undertake.
When choosing a name, it is important to find out if somebody else is already using it. Doing this is very easy. If somebody else is already using the name, you will probably find out if you check online.
It is also important to find out if the name you intend to use has already been trademarked. This information can easily be obtained from India’s Patent and Trademark Office. You can also ask the same office to trademark the name to prevent other people from using it.
Satisfying Legal Requirements
To set up a sole proprietorship firm, you must get in touch with the local government in your area and inform the relevant office about your intention. You will be asked to pay a fee and also complete the relevant paperwork.
You will only be allowed to operate the firm if you obtain the requisite licenses and permits. For instance, if the business will involve preparation and sale of food, you will need to get a permit from the health department.
Depending on the nature of the business, you may also need to obtain certain licenses and permits from the national government.
Just like owners of other forms of business, a sole proprietor is also expected to pay taxes to the Local and State Government as well as the Central Government.
You may be required to pay one or more of the following types of taxes: income tax (as the sole proprietor), Infrastructure cess, Capital gains tax, Toll tax, Securities Transaction Tax, Wealth tax, Perquiate tax, Gist tax, Sales tax, Stamp duty, Service tax, Municipal tax, VAT, Professional tax, Custom duty, Anti-dumping duty, or Excise duty.
If you seek our services, we will help you understand the types of tax that you will need to pay.
It may be necessary for you to obtain a zoning permit from the state government. We will help you find out if a zoning permit is necessary.
Employer Identification Number
Your sole proprietorship firm will obviously need to have employees. Running a one man show can be very difficult. Anyone who intends to hire employees must acquire an EIN (Employee Identification Number).
Keeping huge amounts of money in a safe within your business premise or home poses a great danger to your life as well as other people’s lives. For this reason, you must have a bank account where all deposits and withdrawals can be safely made.
Having a bank account will also enable you obtain financial help from the institution in the form of overdrafts or long-term loans. However, there must be a clear distinction between your personal finances and firm’s finances.
Establishing a sole proprietorship is one of the wisest decisions that you can ever make. We can help you with the whole process. If you need to establish this form of business, get in touch with us.