Product Based Sole Proprietorship Firm : Lesson 4

Welcome to MyOnlineCA Legal Guide Lesson 4. In this lesson we let you know about How to Register a Product based Firm. in the previous lesson 3 you learn about the service based firm, Now let’s learn about the product based business in FAQ manner  –


a) Type of the Registration which is required in the Product Based Firm Registration ?
Ans : In the product based business you have to require the following tax registration or another act registration :

  1. Shop act License
  2. MSME License
  3. CA Certification
  4. VAT | CST | TIN  Registration

So above 4 documents are valid for the opening a current bank account in the case of Product based firm.

In the 60% case, Shop act License or MSME License or CA Certification easily work for the current bank account.

Mainly the VAT/CST or TIN Number is required for issue the taxable invoice or selling on the Ecommerce Marketplace or when the dealer is asking for the TIN Number.


b) VAT | CST | TIN Registration Confusion ?
Ans: There are a lot of the person  which are confused about the VAT or CST or TIN Registration. It’s  an issued by the state govt and rules & regulations are state wise. Even in some state its a very expensive tax registration. So you have to always go with the VAT|CST or TIN When it’s become the mandatory.


c) MSME & CA Certification Benefits ?
MSME & CA Certification is the best way to open a current bank account as a product based Sole Proprietorship Firm. it’s a cost cheap as compared to the VAT/CST. MSME gives you benefits for the govt policy, bank loans etc from MSME Department and CA Certification gives you authentication on your documents.


d) Documents Required for the Product Based Firm ?
Ans : It’s required the following documents :

  1. Personal ID Proof : PAN Card Mandatory
  2. Personal Address Proof : Adhar Card Mandatory for MSME or Voter id or Passport or Driving License anyone.
  3. Firm Address Proof : Elect Bill Copy or Rent agreement or Sale Deed anyone.

e) Costing of Product Based Firm ?
Ans : Product based firm costing depend on the type of the registration. Banks need minimum 2 legal certifications so if you going with the MSME + CA Certification then its cost you just 1000/- INR or if you go with the VAT/CST Registration which depends on state wise. For ex – in Delhi, there is the lowest cost which is nearby 4000/- through myonlineca.