Asked May 03, 2017

Formalities for start up and sole propriertorship

  • 1 Answer

What is the important point of GST for a STARTUP. What type of documents are required for registration for sole proprietorship? 

Answer 1

GST means goods and services tax. The impact of GST for start-ups is manifolds. GST is applicable all over India equally unlike VAT or service tax which differs from state to state, which is easier for interstate movement of goods. According to the current VAT (Value added tax) scheme any business with a turnover of more than 5 lakhs had to pay tax, but in case of GST, the turnover limit is upto 20 lakhs which exempts a lot of small businesses which includes start-ups. This means that the tax burden on new start-ups will be quite less. The start-ups which are into service sector industries (who pay service tax), can set off the VAT with their purchases on service tax on the sales. One of the best things of GST is the entire process of registration, filing returns etc. is online hence the task of payment of taxes is quite hassle free. GST is amalgamation of all kinds of taxes in one so the start-ups which are taking care of both goods and services industries will have to pay only one tax GST than VAT and service tax together. Documents required for registration of sole proprietorship are as follows:- a) Proprietor’s Pan Card copy. b) Any identification proof with personal address like Passport, Adhaar card, Voter ID. c) Address proof of the firm, residential or commercial i) If the premise is rented, then the electricity bill of the landlord or the lease deed. ii) If the premises is owned, then the electricity bill of the premise which comes by your name or the sale deed of the said premises. d) No objection certificate from the owner of the premises. e) Bank statement copy or a cancelled cheque copy of the proprietor.
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