AVI SINGH 04 November 2023

Registering a proprietorship firm

Hi,
I had registered my proprietorship firm on my residential address in Delhi in 2017. I was selling sports stuff online from home.
Since 2019 I have been working from home providing IT services online.
Do I need to get any license from MCD and also any type of local police registration / verification. I don't have any employee and
my turnover exceeds 20L. I am a GST holder from starting and following both GST and Income Tax compliances. A cop is hovering around me and indirectly threatening that I am not carrying sufficient documents. He just saw my GST registration board in front of my home and approached me.

Thanks

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Quick Summary

This discussion addresses the licensing and registration requirements for an online proprietorship firm operating from a residential address in Delhi. The user, who initially sold sports goods and now provides IT services, is seeking clarification on whether MCD licenses or local police verification are necessary, especially after a police officer questioned their documentation. The advice suggests that for e-commerce activities from home, a GST registration is generally sufficient, and a commercial establishment license might be needed to open a business current account, proving the business's legal entity status.

2 Replies

kavksatyanarayana (subregistrar/supdt.(retired)) 04 November 2023

There is no special licensing requirement per se to sell online. The same rules and taxation are applicable for online sales as they are for offline sales.

T. Kalaiselvan, Advocate (Advocate) 08 November 2023

Its an e-commerce activity for which you do not require a commercial establishment but it can easily be done from you residence. In order to sell online all that is required is a GST registration.

When doing online business, you have to maintain a current account in the name of your business. To do this, you need to ensure that your business is a legal entity. To prove this, you get registered with the taxation authorities and also obtain establishment license.