Start a Proprietorship
A sole proprietorship concern denotes a single owner operated enterprise which can be service based or product based or both.
As a Sole proprietorship, the following registrations would become mandatory.
Service Based
Service Tax + Professional Tax + Shops & Establishment + PF + ESI
Note: To operate as a sole proprietor providing services,
Service tax would become mandatory if the turnover crosses INR 9 Lacs.
Professional Tax will be applicable from 2nd year of operations (Varies from case to case)
Shops & Commercial Establishment registration would be applicable if s/he operates from a commercial property.
PF & ESI registration would become applicable if the no. of employees crosses 10 in power based business and 20 in case of non-power based business.
Product Based
VAT + Professional Tax + Shops & Establishment + PF + ESI
Note: To operate as a sole proprietor providing services,
VAT Registration would become mandatory if the turnover crosses INR 10Lacs as per Karnataka Value Added Tax Act.
Professional Tax will be applicable from 2nd year of operations (Varies from case to case)
PF & ESI registration would become applicable if the no. of employees crosses 10 in power based business and 20 in case of non-power based business.
Trading in both products and services
VAT + Professional Tax + Shops & Establishment + PF + ESI
Note: To operate as a sole proprietor providing services,
VAT Registration would become mandatory if the turnover crosses INR 10Lacs as per Karnataka Value Added Tax Act.
Service tax would become mandatory if the turnover crosses INR 9 Lacs.
Professional Tax will be applicable from 2nd year of operations (Varies from case to case)
PF & ESI registration would become applicable if the no. of employees crosses 10 in power based business and 20 in case of non-power based business.
