Proprietary Firm
A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business.
WHY Proprietary Firm?
  • Easy to Establish.
  • Easier to Operate.
  • Sole Beneficiary of Profits.
  • Compliance & Taxation are few.
What Registration are required to obtain :-
  • PAN
  • TAN
  • GST
  • Professional Tax
  • Shop and Establishment License
  • MSME
Mandatory Compliance of Proprietorship Firm
  • Income Tax Fillings : Every Sole Proprietor running a Proprietorship Firm has to mandatorily file income Tax return, if his income lies above basic exemption limit.
  • GST Fillings : A Sole Proprietor registered under GST has to mandatorily file GST returns monthly, quarterly, annually.
  • TDS Fillings : A Sole Proprietor who has TAN must quarterly file TDS returns and issue TDS certificates to the person whose TDS has been deducted.
  • Professional Tax Returns : A Sole Proprietor who has employed even a single employee whose salary is above the prescribed limit is required to deduct PT and file its returns.
  • EPF and ESIC Returns : A Sole Proprietor who has registered with ESIC and EPF has to mandatorily file returns.
  • Accounting : Books of Accounts are required to be maintained if the income from Business or Profession exceeds Rs. 1,50,000/- or the Total Sales / Turnover / Gross receipts exceeds Rs. 2,50,000/-
  • Audit : If the turnover of the Sole Proprietor exceeds the Prescribed Limits he is required to get his books of Accounts Audit from an Chartered Accountant
Documents Required For Annual Compliances For Proprietorships
  • Documents Required For Annual Compliances For Proprietorships
  • Bank statements for all bank accounts in the name of firm in a financial year.
  • Copy of TDS challans deposited (f any)
  • Copy of TDS returns filed (if any)
  • Authority from other Directors on letter head (In case of company)
  • Invoices of expenses incurred during a financial year
  • Credit card statement for expenses incurred by proprietor on behalf of a company (if any)
  • Copy of GST returns filed (if any)
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