11 December 2013
hello experts, one of my friend is planning to register his photography business, what kind of business is suitable is it sole proprietor, private company or LLP, which type is Good/suitable for incorporating photography business..? please reply. Thank you..
11 December 2013
Proprietary business is good option for you. It has less compliance in compare to other.
In this form of business organisation, an individual normally uses his own capital, skill and intelligence to carry out some business activity. He is entitled to receive all the profits and gains of his business and also assumes all the risk of ownership. The sole proprietor exercises full control over the affairs of his business. As there is no legal obligation to supply any information regarding his business to anyone, he can maintain maximum secrecy in conducting his business affairs. This type of organisation is particularly suitable for businesses which are small in size and where risk and capital involved are not very large.
In the case of proprietorship firm, there is no registration required. As there is no procedure to make application for availability of name (as in the case of companies) applicable, you simply have to open a bank account with the name & style you want to work. But if your business is liable for VAT and / or Service Tax registration, then you have to obtain VAT and / or Service Tax registration. Further, for sole proprietorship, no separate income tax PAN is required. The PAN of the proprietor will be the PAN of the firm and proprietor will have to file income tax return in his personal name.
Documents Required for Proprietary Firms
• Photocopy of PAN Card (copy and photograph clearly visible).
• Shop and Establishment Licence (only Registered Shop and Establishment Licence will be accepted).
Proof of residence:
• Bank statement no more than three months old with stamp and signature (bank letter confirming the name of the client, address and account number if not on the letterhead).
• Photocopy of utility bills (landline, electricity, gas bill – no more than three months old).
• Photocopy of driving licence (valid and not expired).
• Photocopy of passport with full address of the client (address on the passport should be typed and not handwritten).
Bank proof:
• Cancelled cheque.
• Bank statement.
• Office proof with office address and in the name of the firm/proprietor.
• Bank statement no more than three months old with stamp and signature.
• Photocopy of utility bills (landline, electricity, gas bill – no more than three months old).
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