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Proprietorship

Home Proprietorship

Goods and Service Tax v/s Shop and Establishment Act

The registration is mandatory for several reasons, including the opening of the current account in a bank. This license, forms as a basic license and a proof of your business to apply for other registrations required to run a business in India.

 

Registration of proprietorship firm can be done in the following 2 ways: 

1. Goods and Service Tax No.

GST is applicable in case if the turnover of the  firm is more than 40 Lacs

 

In case of GST 2 returns are required to be filed i.e., GSTR 3B and GSTR1 GSTR 3B is required to be filed monthly. Whereas filing of GSTR 1 depends on the estimated turnover of the firm during the year, If more than 1.5crore then return should be filed monthly otherwise quarterly.

 

Following Documents are required for registration of GST: –

 

  • Trade Name of the firm
  • Aadhar Card and Pan Card of Proprietor
  • Email ID and Mobile No. of Proprietor
  • Passport size photograph
  • Rent Agreement/NOC/Consent Letter and Electricity Bill

2. Shops and Establishment Act

Shop and Establishment Act is made by the Labour department and is applicable in case if the turnover is less than 20 Lacs: –

 

In case of the Shop and Establishment Act, no return is required to be file

 

Following Documents are required for registration of the Shop and Establishment Act: –

 

  • Trade Name of the firm
  • Photograph of Office Inside and outside
  • PAN Card and Aadhar Card copy of the proprietor
  • Email ID and Mobile no. of the proprietor
  • Rent Agreement (if rented)/ Deed (if owned).