I was doing freelancing, blogging and some short of digital marketing to make a living online and that was all on my personal details like my home address & my personal bank account.But after #noteban and completing my MBA in marketing I thought that I should create a legal entity and use business banking to receive funds and file the ITR in proper manner, so I decided to register a proprietorship firm in my home town Allahabad.
After registration I got:-
- M/S Behtar Servies
- Registration Number & Certificate
- Current Account
- Firm Seal, Letterhead etc
Later the Behtar Services enrolled in GST too.
Why this Firm Registration was Necessary?
Previously I was thinking that it is not necessary to register a firm, because here in India no one is going to check the registration, and that is reality to some extent but my business was in need of features like getting online payment in current account, online payment gateway setup to receive online payment through netbanking, debit card, credit card or payment wallets.
So, the payment issues were the first reason behind getting this registration done and secondarily I was doing business but I was not building any brand that could be promoted by any of my team members in long run even after me.
Services I would offer under Behtar Services
It was not planned that what would be the offerings under Behtar Services because I was in need of getting a legal entity so that I could run my websites and advertisements under the eyes of the law and then my CA suggested that why don’t you offer some more services because there is no extra fee to offer various related services.
You would be liable to pay the taxes only when you would sell any of the service that would be listed on your registration certificate.
And I said, yeah it seems good idea and then I registered for 10 services as mentioned below:-
- Advertising agency services
- Market research agency service
- Banking and other Financial services
- Video production agency/video tape production service
- Event management
- Commercial training or coaching
- Internet cafe
- Design service other than interior decoration and fashion designing
- Information technology software service
- Promotion or marketing of brand of goods/services/events service
And I’m happy because these services would cover almost all of my current and future offerings to my clients.
How I Registered Behtar Services?
I was aware that all the registration options are available online but I was hesitating to do the registration part on my own being a newbie and that’s why I ask my friend who is running a similar firm by consulting a sales expert.
So I got his contact details for consultation and I got to know that my services would come under Central Board of Excise and Customs that comes under the Ministry of Finance – Department of Revenue.
Then I asked my personal banker from ICICI Bank about getting a current account and if he know any good CA to register my firm and manage the tax filing part for me.
He suggested a good and young CA, I was happy to meet a young CA because it was easy to clear the doubts in friendly tone.
CA filled my registration form at the official website https://www.aces.gov.in/ and asked me wait for 2-3 days to get the certificate from the local office, I followed him to the local office within a week and there I met with the officer who asked about the purpose of registration and signed the certificate giving me an authority to start my business under the rules and regulations created by Government of India.
Bank Account for Behtar Services
After getting the registration certificate, I managed to open a current account on the name of firm in my favorite private bank ICICI Bank where the minimum account opening balance and minimum account balance required is Rs.5000/- with the transaction limit of Rs.60,000/- per day which is enough for the size of my business.
In addition, I got the general banking tools like internet banking login ID & password, debit card and cheque book (that got delivered to my registered office address within a week).
Legal SEAL of Behtar Services
After some online transactions in my firm’s bank account I though about creating the legal seal with regd./GST number to verify the manual bills and other documents issued by the firm to my clients or the officials.
Now the ITR Filling is a Regular Requirement
After consulting my CA I came to know that my firm would file ITR every 6 months to report the business transactions with the bank transaction details.
This needs to be filled on time every time!
I hope my story about the proprietorship firm registration and management would help you to understand that how it all works and may be you would feel easy to take decision about registering a legal entity if doing any business like I do.