Overview

Introduction

Why You Should Register

• Open a current bank account in your business name
• Obtain a GST number to sell goods or services
• Apply for business loans or tenders
• Build credibility with clients, suppliers, and authorities

Compliance & Taxation

• The business income is treated as the owner’s personal income and taxed under individual income tax slabs.
• No separate tax filing is required for the business.
• If turnover exceeds limits under the Income Tax Act, a tax audit (u/s 44AB) may be required.
• GST registration and filing apply only if the business crosses the threshold limit or does interstate trade.

Other Registrations Required

Registration Type

• Udyam (MSME) Registration
• GST Registration
• Shop and Establishment License
• Professional Tax Registration
• Business Bank Account

Purpose

• Official recognition as a small business
• For tax compliance and business credibility
• Local municipal registration for operating a business
• For businesses in certain states (like Maharashtra, Karnataka, etc.)
• Financial proof of business operation

When You Should Convert

• Your turnover or risk exposure increases
• You plan to raise capital or add partners
• You need limited liability protection
• You want to build a scalable, investor-ready brand