Many people who works as contractors or want to just start a small business through a sole proprietorship, struggle to get the proper information.
I’ve created a quick guide on how to do it yourself without spending any money on CA’s.
Remember: Open a new sole proprietorship and it’s current/checking account only if you think your annual income is going to be less than 20LPA. If not you will need to apply for a GST later on. This is still a good starting point till you hit the 20L figure.
Follow these steps:
Step 1 – Udyam Certificate
Register your new business at https://udyamregistration.gov.in/. It’s a short form.
Udyam certificate will be issued immediately after Aadhar OTP verification.
Save the PDF of the Certificate (with Annexure, will be 3 pages long)
Cost: Rs 0
Time: < 1 hr
You can start operating legally under this new name already.
Step 2 – Stamp
Find a local stationary shop and ask them to create a simple rubber stamp. Just share the EXACT name of your new business.
It would look like this:
Cost: Rs 50 to Rs 150.
Time: They should have it ready the same day or the next day max.
Step 3 – Current Account
Go to a bank of your choice with the following documents:
- PAN Card
- Aadhar Card
- 1 Photograph
- Udyam PDF from Step 1(3 pages)
- Stamp from Step 2
- Chequebook of your savings bank account (required to transfer the minimum balance into your new current account)
Tell them you want to open a sole proprietorship current account. They’ll do the rest.
Cost: Rs 0
Time: < 1 hr (depending on bank)
Bank would take 3-7 days to process your account opening request.
That’s all folks!