Is a sole proprietorship firm a legal entity ? does it need to be registered? When I sign a contact with such entity do I need to specify that it is a sole proprietorship firm? what else do I need to specify?
Thanks
dana (other) 30 June 2010
Is a sole proprietorship firm a legal entity ? does it need to be registered? When I sign a contact with such entity do I need to specify that it is a sole proprietorship firm? what else do I need to specify?
Thanks
Deepak Mishra (Deputy Manager (Legal)) 01 July 2010
Sole Proprietorship frim does not require to be registered by any authority specifically, but the person should make a declaration of such and file necessary taxes with Govt in the name of sole propritership firm.
Rahul Goyal (Student) 01 July 2010
No registration is required for a sole proprietorship. You simply have to open a bank account with the name & style you want to work. But if you are liable for state VAT 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.