quesSole proprietorship.

I want to start online portal. What is the process to create a sole proprietorship? Do I need to get any business licences to open bank account in the name of the proprietorship? I'm assuming bank needs some documents to open the account in the name of the proprietorship as opposed to a personal account. If I create the sole proprietorship but I end up not having any profits, do I still need to file taxes? If I create the sole proprietorship but I end up not having any profits, do I need to "pay" any taxes or recurring fees in that case? How long does it take to get the sole proprietorship established?

  • ansSole proprietorship does not require a registration with the normally.However you will certainly need to obtain licence from the government depending on the nature of your business. For instance it could be service based or otherwise.The licence will help you open the bank account in the name of the proprietorship. You will need to get a pan card made in the name of the firm. Regardless of the profit or loss you will have to file tax returns;the question of having to pay taxes arises only if you have profit as if you have loss it will reflect in your tax file.

    Yes you will be required to renew your licence as it expires.Apart from this you won't have any recurring charges to be paid. You need to obtain licences from The federal government ,Your state government and Your local government. A sole proprietorship offers the least amount of complication in terms of start-up requirements for the different business organizations. The whole process might take about 15 days.

  • Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at LawRato.com and has been responded by one of the Property Lawyers at LawRato.com to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or book a Detailed Consultation with a Lawyer of your choice to address your query in detail.
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