[Games Goblin]

I would like to know the procedure of starting a small business, wherein a single person is contributing all the capital, conducting business and bearing all the risk. It would be based out of owner's home premises, focused on online selling through the business website / ebay etc - with a possibility of setting up of shop in the future, according to demand. The main focus of business would be selling of goods.

From researching online on quite a few sites, I have come to understand that Sole Proprietorship is the fastest and easiest way to start up the business - and starting a current account in the business name is the starting point.

I have many doubts regarding this:

1. Can the name of a sole proprietorship be registered with the authorities similar to how companies are registered with ROC

2. What is the min. amount of turnover the business must have for compulsory VAT registration and obtaining TIN no. - can we register for VAT even if we don't exceed the stipulated turnover amount?

If the business does not meet the min. turnover for compulsory VAT, then should it charge VAT/CST on the invoice raised?

3. If the business renders services (service rendered by proprietor) , is service tax registration required?

4. Are there any advantages to start it as an LLC? Single person will be contributing funds and carrying on business but can he form partnership with a dormant partner for sake of registration as an LLC?

5. sometimes, the shop will be sourcing its merchandise from suppliers who are abroad - will this require Import Export Licence - and can the shop use a Foreign Currency account for transactions relating to procurement of materials?

6. For starting website under the business name, what is the procedure for registering domain? Can domain be applied for only after name of the business is registered?

Any help regarding the above matter would be greatly appreciated.

[trek]

Need some inputs with opening an current account for a new Proprietorship firm.

The bank needs a 'VAT' number as one of the requirement for opening a current account BUT to obtain a VAT number, one needs to have a current account and submit a cheque from the same!!

I am not sure why there are such illogical laws that prevent new businesses from starting easily. I consulted couple of CAs but they weren't helpful in getting any bank to open a current account without VAT. Can anyone suggest a hack to resolve this situation or please recommend a CA who can get this work done.

Location - Mumbai.

Thanks in advance.

[Jaguar]

Originally Posted by trek

The bank needs a 'VAT' number as one of the requirement for opening a current account

Did you check with multiple banks?
I have a Home Saver home loan and it comes with a linked current account and I don't have any VAT number.

[pramodkumar]

Originally Posted by trek

Need some inputs with opening an current account for a new Proprietorship firm.

The bank needs a 'VAT' number as one of the requirement for opening a current account BUT to obtain a VAT number, one needs to have a current account and submit a cheque from the same!!

I am not sure why there are such illogical laws that prevent new businesses from starting easily. I consulted couple of CAs but they weren't helpful in getting any bank to open a current account without VAT. Can anyone suggest a hack to resolve this situation or please recommend a CA who can get this work done.

Location - Mumbai.

Thanks in advance.

Go through the document, "ANY 2" of the documents should be sufficient.

http://www.kvb.co.in/pdf/document_fo...nt_account.pdf


Pramod

[john.gt]

Originally Posted by trek

Need some inputs with opening an current account for a new Proprietorship firm.

The bank needs a 'VAT' number as one of the requirement for opening a current account BUT to obtain a VAT number, one needs to have a current account and submit a cheque from the same!!

Location - Mumbai.

Thanks in advance.

I'm not sure if the process of banks change from location to location. In Bangalore, we gave the registration certifcate/number for starting a current account for a sole proprietorship along with the personal PAN details/copy. This was with SBI. It was a new bank and we stayed right opposite to it.