Partnership is agreement between no less than two people who agreed to share advantages of a business by each one of them together.
Proprietorship Compliance services in Purnea, Bihar
Avyud Consultancy is the largest professional services platform in India, providing a wide variety of services such as Proprietary Compliance, LLP Registration, Trademark Filing, GST Registration, Income Tax Filing, and much more. We can help you maintain compliance with your ownership. Get consultation for Proprietorship compliance maintenance through Avyud Consultancy by scheduling an appointment with our advisor.
The proprietorship entity will have to file its annual tax return with the IT Department. Other tax filings like GST filing may be required from time to time, based on the line of their business. Annual reports or balance sheets should not be filed with the Ministry of Corporate Affairs, which is necessary for Limited Liability Partnerships and Private Limited Companies. It is not required for Proprietorship to prepare audited financial statements each year. But, a tax audit may be required based on turnover and another criterion. The compliance requirement for a business would vary based on the type of entity, industry, state of incorporation, number of employees and sales turnover.
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Types of Proprietorship Compliance
You need some documents to start the business and need to file some annual returns to avoid becoming a tax defaulter for proprietorship business.
PAN Card
Getting PAN card is the first and foremost step towards starting a sole proprietorship business. It does not need to be in the name of the firm. Proprietor’s personal PAN card will serve the purpose.
Income Tax Payment
There is no difference between a sole proprietorship and its owner. This is because a sole proprietorship has no different legal entity. Therefore, the net profit of the business will be the income of the proprietor. If this income exceeds the taxable slab limit, which is Rs. 2,50,000 for individuals and HUFs, then there will be tax liability.
It’s necessary to pay IT to avoid penalty and an income tax notice.
Income Tax Return
You need to file income tax returns if your income exceeds the taxable limit. But, you can still file a Nil Return of your income if your income is less than the taxable limit. Filing a Nil return has the following benefits given below.
- Building credibility
- Serving as proof of income
- Claiming refund of TDS
- GST Registration
GST Returns
All registered businesses need to file a GST return. A GST return can only be filed online.
The type of return and the due date for filing varies with the type of business.
Tax Audit
Tax audit is not compulsory for a sole-proprietorship. You need it only if the turnover of your firm exceeds Rs. 2 Crore.
What documents do I need?
For seamless compliance, you need the following documents.
- Photographs of the proprietor
- Purchase and sale invoice
- Expense invoice
- Balance sheet
- Profit and loss account
- Proof of address
- Date of birth proof (Class 10 certificate/Birth certificate)
- Bank account statement
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FAQs for Proprietorship Compliance services
What is a Proprietorship?
A proprietorship is a company with only one owner and is not registered with the state, unlike a limited liability company (LLP) or corporation. Starting a proprietorship doesn’t require any paperwork — you just go into business to form a proprietorship. Although you do not need to file paperwork to set up a proprietorship, you must obtain business licenses and permits just like any other form of business.
Who Can Opt for Proprietorship?
Any person who wants to start a business with less investment can opt for this type of business. It can be started with an interval of 10-15 days. Also, the control in business is completely in your hands.
Can a Proprietorship Issue Shares?
Proprietorship firms are controlled and managed by a single person and therefore they can issue shares or have investors.
What are The Compliances Required?
As a proprietor, you must file an income tax return annually. Also, if you are registered under GST then you need to file your GST return. A proprietor must also deduct TDS and file TDS return if it is liable to tax audit.
Who Can Start a Proprietorship?
Any Indian citizen can start a proprietorship firm.
What Businesses Are Run as Proprietorships?
Most local businesses are run as a sole proprietorship, from your grocery store to a fast-food vendor and even smaller merchants and manufacturers. This is not to say that large businesses do not operate as sole proprietors.
Our Other Services in Purnea, Bihar
Limited Liability
Associations are the most widely recognized business structure for organizations that have more than one proprietor.
Private Limited
Business people which are now maintaining their business or new companies in India now they need to get ready for the consistence season.
Foreign Subsidiary
Foreign subsidiary organizations are compulsorily required to keep up consistence according to Income Tax Act, Companies Act.
