Starting a company is really a hard Process. Honestly, When I Registered my first company, it was very much hard for me because there were so many tasks to complete.
Sole Proprietorship is the simplest structure to start a business. It is an UN-incorporated business owned by only one person who runs the business on his own. Still, it’s hard to register if you have no idea how you can start a Sole Proprietorship firm.
To make it easier for you, I have created a simple list or you can say steps you have to follow to get started with your business.
Get your PAN
First of all, you must have PAN also known as Permanent Account Number. Without PAN, You just can’t start any kind of business in India. If you are having transactions in your Bank account which is not savings, you must have PAN Card.
Even you have to mention your PAN while Paying the Bill amount more than Rs50,000. So, You must get PAN First. There are two ways to get PAN, You can get it from NSDL or UTIITSL. Both are the Organizations who work under Income Tax Department and Allot PAN to the Applicants.
Once applied, you can check PAN Application status to know the status of your PAN Application.
Open A Current Account
Now, After Getting PAN, You have to open Current Account in any bank you like. While Opening the Bank account, you have to Mention your PAN too!
Once you’ve opened a Current account, You have to Register for Service and Sales Tax.
- Register for Services and Sales Tax
Service Tax is an tax on Services as it’s name says exactly. It is an tax demanded on the exchange of specific administrations determined by the Central Government under the Finance Act, 1994.
Sales tax is also known as VAT and it is Multi point destination based system on Taxation in which tax is taken on value addition in the process of Development or production.
- Apply for TAN
Every one of those people who are required to deduct assess at source or gather charge at source for the benefit of Income Tax Department are required to apply for and get TAN.
There are some more steps that you have to follow in some cases only like Seasonal business but as this article is for General Purpose, we are not going to cover it in the same article!
Conclusion: If you have no idea about the business you are going to start, We recommend you to go through the list of companies you can register. But, if you want to start small and then expand with growth, start with Sole Proprietorship. It will not cost you much to start your business with this structure because it’s the most basic type of company you can register. Let us know if you have any questions regarding this topic in the comment section, we are happy to help you!