What is Trade License and what is the use of Trade License?
It is a License issued by the Local authority to run the listed business by the trader within the jurisdiction of the local body (GHMC). It is a license or permission issued by municipal corporation granting permission to carry on a particular business at a particular address. It ensures that the citizens are not adversely affected by health hazard and nuisance by the improper carrying of trade.
Why Apply For a Trade License?
- Allows the State government to keep track of the businesses functioning within the state.
- Ensures that no illegal trading is occurring within the country.
- Makes sure that all the businesses functioning within the state follow certain rules and regulations.
- Helps the government regulate trade activities within the country.
What happens when your business/trade doesn’t have Trade License?
If a person doesn’t apply for the license or before the grant of the license as required under law and commences any trade or business activity than the relevant government (authority) can impose fines and penalty as per their rules and regulation. The failure to comply with pre-requisites of the trade license can also result in the closure of a business.
What is registration under Shops & Establishments act and why is it required?
The Shop and Establishment Act regulates conditions of work, lists rights of employees in the unorganized sector, and provides a list of obligations for every employer. It is mandatory for several reasons, including the opening of the current account in a bank. This Shop and Establishment Act license, forms as a basic license and a proof of your business to apply for other registrations required to run a business in India.
What are the benefits of registration under Shop and Establishment act?
The benefits of obtaining registration under Shop and Establishment act:
- The right of doing business.
- Ease of opening a current business account.
- Facilitates smooth inspections.
- Government benefits.
What is GST? How does it work?
GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
What are the benefits of GST?
- Easy compliance.
- Uniformity of tax rates and structures.
- Removal of cascading.
- Improved competitiveness.
- Gain to manufacturers and exporters
Is GST filing mandatory?
Return filing is mandatory under GST. Even if there is no transaction, you must file a Nil return. You cannot file a return if you do not file previous month/quarter’s return. The late filing fee of the GSTR-1 is populated in the liability ledger of GSTR-3B filed immediately after such delay.
What happens if you don’t pay GST?
Any registered taxable person who fails to file their GST on time due to any reason or wishes to do after the due date will be liable to pay a fine of Rs. 100 under CGST and the same amount SGST taking the total to Rs. 200 per day.
Is it necessary to obtain drug license prior to commencement of the drug business?
Yes, before you start any business dealing in drugs, whether it is Allopathic Drugs, Ayurvedic Medicine, Homeopathy or Unani, to manufacture, distribute or sell the drugs It is mandatory to obtain a license as per the nature of business by applying to the controller of the drugs and cosmetics.
Do I have to apply and seek separate drug license for Branches of My Pharmaceutical Business?
In case a business is operating in more than two states, it has to obtain drug license in every state in which business is being carried on. Drug license is location specific, and hence within state application, all sites must be included.
How to apply and get the PAN and TAN of the Partnership Firm?
The PAN is a ten-digit alphanumeric number allotted by the Income Tax Department, the application for pan card is filed in Form No 49A. The TAN is a number allotted for TDS Compliance, the application for TAN is filed in Form No 49B. Normally it takes around 6-10 days in PAN allotment and Pan Card Delivery.
Can I convert a Partnership Firm into a Private Limited Company or LLP?
Yes, a partnership firm can be converted easily into a Limited Liability Partnership or a Private Limited Company. The partnership is an old method of doing business; we always recommend to start a business in the Private Limited form.
What is LLP Agreement?
The partners of the LLP bind themselves concerning their mutual rights and obligation, capital contribution ratio, profit sharing ratio in a document which is known as LLP Agreement. After incorporation of LLP, the partners need to execute the same and file a copy with the registrar of companies within 30 days of Incorporation, failing which a penalty of Rs. 100 day is imposed for each day of delay.
What is the limit of Capital with a One Person Company can be Incorporated?
The OPC Can have an average turnover of Rs. 2 Crores for three years if the turnover exceeds the limit then the same need to mandatorily convert as a normal company.