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Umesh (Director)     21 November 2012

Starting a properitership company dealing in solar products

I would like to sell and install solar lanterns and later high end solar equipment in the interior villages of Maharashtra.

For the same , I want to start a  a properitership company dealing in Solar products and would like to know

1)what licenses and formalities will I require to establish the company.



 4 Replies

Madhav Dhulkhedkar (OO)     21 November 2012

Dear Umesh,

For proprietorship firm no agreement/ license is required. You can start your firm and register under shop act and open your bank current account in your favorate bank. Deposite your initial investment. Buy solar products from your favorate supplier with Tax Invoice. and sell them to your customers present in villeges. Once your either purchase or sale reaches near to Rs. 5 lakhs within one financial year contact your tax consultant and get VAT registration. You are not eligible to get subsidy under natural resources energy but your client will. You will need one accountant to maintain accounts. That's enought.

1 Like

Umesh (Director)     22 November 2012

Dear Madhav Dhulkhedkar ,

Thank you for your answer.

1)For registering under shops act , does it mean that  I will have to go for Gumasta licence?

Presently I will be running this concern from home and only after it makes sales after a certain limit will I go for a physical shop.

2)Does selling of solar products attarct any TAX in present scenerio?


Madhav Dhulkhedkar (OO)     22 November 2012

1. For getting Shop act license, you may required the property tax receipt or electricity Bill or Land line / post paid telephone bill of the owner of the house or shop and consent letter from the owner. Your Photo ID is required.

2. For opening bank account you may required shop act license, your address proof, Your ID and introducer whose account is present in the same bank.

3. You may have to pay VAT. But at present your not registered with Sales Tax dept. After achieveing sale or purchase Rs 5 lakh you are elegible to get VAT. If VAT number is essential for your transaction then you can obtaine the same by depositning Rs. 25000/- with Sales Tax dept. Your VAT will be deducted from this amount. Once this amount becomes nil, you can pay tax as per standard rate. At present VAT for all electronics items is 12.5% in Maharashtra.

1 Like

P.K.Haridasan (Advocate)     22 November 2012

You must approach the local authority and get a trade licence. If you are manufacturing a lice for that also.Afterwards you hav e to approach sales tax authorities etc.

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