📃 What is a Proprietorship?

A proprietorship/sole trading firm is a business that is owned and run by an individual person. The owner and the business are treated as one and the same. The proprietor is personally liable for all business debts, meaning their personal property may also be used to repay business debts.

📄 Do Proprietorships require registration?

Proprietorships are not regulated by any particular Act, hence there is no registration. Every business needs registration under the Shop & Establishment Act, whether it provides a service or deals in goods. Other registrations, such as GST, depend on the nature of the product/service.

📋 Do I need TAN registration?

TAN is a Tax Deduction and Collection number needed if you are responsible for deducting tax at source on behalf of the Income Tax Department. It is also quoted in various challans, returns, etc. Not every proprietor is required to get a TAN unless it is required due to the nature of their business or profession. ProKhata experts will advise you if you need to obtain TAN.

📝 Guidelines for choosing a name for the Sole Proprietorship firm?

The name of the firm should not contain any words indicating the approval/support of the government unless the government has given its written consent for the use of such words as part of the firm’s name. The name of the firm can be reserved by getting trade mark registration.

🏢 What is the objective of the Shops & Establishments Act?

Every Indian state has enacted certain rules and regulations regarding conditions of work. The objective is to secure uniform benefits for employees working in different establishments, from shops and commercial establishments to residential hotels, restaurants, theatres, and other places of public amusement or entertainment.

📆 When is a Shops and Establishments Act license required?

Every shop and establishment needs to register under this Act within 30 days of commencing work. As this is a basic license, many other licenses require this as proof of a commercial business. For example, most banks will require you to furnish it if you want to open a current account.

📑 What records are to be maintained under the Shops and Establishment Act?

Every business has to seek approval from the Department of Labour and maintain up-to-date registers regarding employment, fines, deductions and advances, salary, and holidays. Requirements may vary from state to state. Files related to annual holidays and the number of employees need to be submitted to the Municipal Corporation office annually.

🌍 Which specific cities will the service be delivered to?

The service is state-specific for shop licenses and will be rendered only in specific cities such as Mumbai, Gurgaon, Hyderabad, Kolkata, Jaipur, Surat, Bangalore, Chandigarh, Pune, and Delhi.

💸 What government fees apply for registration under the Shop and Establishment Act?

Government fees for registration under the Shop and Establishment Act depend on the state and the number of employees. Here are some examples:

– **Andhra Pradesh**:
– 0 Employees: ₹30;
– 1 to 5 employees: ₹100;
– 6 to 10 employees: ₹200;
– 11 to 20 employees: ₹1000

– **Delhi**: – 0 Employees: ₹5; – 1 to 10 employees: ₹15; – 10 to 25 employees: ₹30; – 25 and above employees: ₹50

– **Madhya Pradesh**: – 0 Employees: ₹100; – 1 to 3 employees: ₹150; – 3 to 10 employees: ₹200; – More than 10 employees: ₹250

– **Maharashtra**: – 0 employees: ₹100; – 1 to 5 employees: ₹300; – 6 to 10 employees: ₹600; – 11 to 20 employees: ₹1000; – 21 to 50 employees: ₹2000; – 51 to 100 employees: ₹3500; – 101 or more: ₹4500

🔢 What is GST and GSTIN?

Goods and Services Tax (GST) is a comprehensive tax levied on manufacturing, trade, and services across India. From 1st July, 2017 GST has replaced most Centre and State imposed indirect taxes like VAT, Service Tax, Excise, etc. Goods and Services Tax Identification Number (GSTIN) is a 15 digits state-wise PAN-based number to be used to identify businesses registered under GST.

📍 Do I need to apply separately for each location within Maharashtra?

If you have multiple places of business in the same state, you can get them all registered under a single GST registration application. The name of your registered business place will be the primary place of business, and the other branches can be added as additional places of business at no additional cost. There is no limit on the number of branches that you can add under a single GST registration application, provided all the branches are in the same State.

📅 When do I need to start filing GST returns?

Every registered person under GST needs to file GST returns for the period starting from the time they got registered or the date when GST was implemented (i.e., 1st July) [whichever is later]. If your business was registered for GST in August, you need to file a return for the period starting from