Requirement of registration
KHUMESH
(Querist) 07 May 2013
This query is : Resolved
Dear Sir,
I want to start the small business . The nature of buisness is that I want to do jobwork where I will keep/employ the skilled person like carpenters, Plumbers and painters etc. I will use them for other work . I will keep them on monthly package and whenever I find job work , I shall send them for work. So I will open shop and supply the skilled persons.
Will I have to register the shop/supply contract . Mostly I can keep 5-10 peroples and shall expand my buisness in future .
Please inform about registration required and where I should apply for registration
Regards,
K.K.Patle
Advocate M.Bhadra
(Expert) 07 May 2013
A sole proprietorship is the oldest and the most common form of business. It is a one-man organisation where a single individual owns, manages and controls the business. Its main features are :-
Ease of formation is its most important feature because it is not required to go through elaborate legal formalities. No agreement is to be made and registration of the firm is also not essential. However, the owner may be required to obtain a license specific to the line of business from the local administration.
The capital required by the organisation is supplied wholly by the owner himself and he depends largely on his own savings and profits of his business.
Owner has a complete control over all the aspects of his business and it is he who takes all the decisions though he may engage the services of a few others to carry out the day-to-day activities.
Owner alone enjoys the benefits or profits of the business and he alone bears the losses.
The firm has no legal existence separate from its owner.
The liability of the proprietor is unlimited i.e. it extends beyond the capital invested in the firm.
Lack of continuity i.e. the existence of a sole proprietorship business is dependent on the life of the proprietor and illness, death etc. of the owner brings an end to the business. The continuity of business operation is therefore uncertain.
Sole Proprietorship Firms does not need any registration with any Government agency. However, various licenses are applicable to do business e.g.Trade License from local Municipality Service Tax, VAT, IEC, Shops & Establishment license etc.
Devajyoti Barman
(Expert) 07 May 2013
Yiu have to register your concern under Shop and Establishment Act.
You have to apply for Trade License as well.
ajay sethi
(Expert) 07 May 2013
register your self under shops and establishment act . i presume you are going to carry on business as sole proprietor .
