Business from home - proprietorship company
Tripathi
(Querist) 05 July 2015
This query is : Resolved
Dear Sirs,
I have registered a small proprietorship company in my own DDA flats with DVAT and also have bank account.
It is a full and full residence with family and no employees or name board of the company put in the flat.
All my business is done through internet by buying and selling directly and no employee is employed.
I only receive letters / purchase orders through courier on this address.
Is it legally permitted to run such proprietorship business from DDA flats?
Further, I have done formal registration done for this company at Orissa and have the SSI certificate issued on its name at my Orissa address. However, since I am in Delhi for the past few years, I have given the Delhi address of my DDA flat mainly for communication.
Understand, many trusts / consultants are operating from residences. So, giving residential address for any trust / running small business like proprietorship company is an offense as per MCD / DDA act?
Can you please guide me on this?
Tripathi
Rajendra K Goyal
(Expert) 06 July 2015
Running commercial activity in residential area is not permitted till specifically allowed. Consult local lawyer for position in your area.
Rajendra K Goyal
(Expert) 06 July 2015
Running commercial activity in residential area is not permitted till specifically allowed. Consult local lawyer for position in your area.
P. Venu
(Expert) 06 July 2015
I do not see any reason why the business activity as stated is an offence or otherwise unlawful.
Guest
(Expert) 06 July 2015
You have not stated, whether you have received any notice from the MCD/DDA for commercial use of your residence and what ground they have mentioned for illegal running of the business.
Surrender K Singal
(Expert) 06 July 2015
Whatever has been stated by Author, is O.K. It is hardly any selling / trading from the residence. It is just a correspondence addresss and none of MCD / DDA. Don't worry. You have already registered under DVAT Act. That could add to higher House Tax liability, if at all ?
Tripathi
(Querist) 08 July 2015
Dear Sirs,
Thanks a ton for all the responses.
Wish to clarify further:
1. DDA means Delhi Development Authority. MCD means Municipal Corporation of Delhi.
2. It is a free hold property flats.
3. No notice is received from any one. But, I am taking a precaution.
4. Since I have the DVAT registration and having current account on this address whether it will create any problem? Though there is no employee employed with us and it is 100 % a residence in all respects.
5. I have a computer through which I conduct business by purchasing the products and selling. The selling is always done against the orders received and no godown is used for this.
6. Baisclaly, there is no material stores, no employee is employed.
Onceagain, thanks for all your support and guidance.
Kindly advise.
with regards,
Tripathy
