Cost of Sole Proprietorship Firm Registration

Cost of Sole Proprietorship Firm Registration in India

The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts i.e. unlimited liability of the sole proprietor. Sole proprietorship firm needs no legal registration like Limited liability partnership or partnership firm. The main motive of a sole proprietor is to open a current bank account for which banks ask for any legal certification for the business so, a tax certificate or any local registration certificate is required to carry on business in India.

As per guidelines of Reserve Bank of India (RBI), banks mainly ask for minimum two legal proofs i.e.  Shop Act License or Gumasta License and VAT/CST Registration or Service Tax Registration. Costs for such registrations are:-

• Shop Act License or Gumasta License is the local municipal shop act licence certificate. This requires basic ID proofs such as PAN card, address proof, or No Objection Certificate (NOC) etc. The cost for such licence in India is around 3000 Rupees it varies as per professionals.

• VAT/CST Registration is state wise, so its cost varies state to state. VAT/CST Registration number is also required when you are selling at online marketplace. This registration is required when you are dealing as trader, manufacturer, supplier etc. Its cost is around 5000 rupee to 15000 rupee varying state to state apart from the Security.

• Service Tax Registration is required when the overall taxable turnover of the firm exceeds 9 lakh rupees in a financial year. If we talk about the CA Firms and Lawyers Firms then they charged nearby 3000/- Rupees to 4000/- Rupees or in many case of the companies it charges even more along with Fees. So Generally Acceptable Quote is nearby 2500/- Rupees to 3000/- Rupees.

Author: This blog is written by  Ms. Ankana Mukherjee , student of Dr. Ram Manohar Lohiya National Law University,(RMLNLU) Lucknow, a passionate blogger & intern at  Aapka Consultant.

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