Hi, I am Rahul Tondale. I live in Pune, in India. I just started a drop-shipping business (Not a single rupees profit) Business Info :- Drop-shipping is a type of business model which enables a company to operate without maintaining inventory, owning a warehouse to store their products, or even having to ship their products to their customers themselves. How it works is that the retailer partners up with a drop-ship supplier that manufactures and/or warehouses products, packages the products, and ships them directly to the retailer’s customer, on the retailer’s behalf. In simpler terms, this is how drop-shipping works:- 1. The customer places an order for a product on the retailer’s online store. 2. The retailer automatically or manually forwards the order and customer details to the dropship supplier. 3. The drop-ship supplier packages and ships the order directly to the customer in the retailer’s name. 4. Refer this link for more info. https://www.abetterlemonadestand.com/what-is-drop-shipping/ I want to start a drop-shipping business & for drop-ship business required GST no. I found online a website vakilsearch.com they suggest me to register for pvt ltd company. I want register for sole proprietor only for GST no. After all procedure completion they told me about pvt ltd company compliances (demand for 10-15K). I have a limited budget. And I want to invest on my business but from company incorporation I only invest on registration & compliances. My company name is RNDA ENTERPRISES PVT LTD. Company Incorporation date is 12TH Dec. 2018. My questions is, 1. Which are the compliances are mandatory? 2. Which are the compliances I do myself? How? 3. Which GST I required to pay? How? 4. How to file GST myself? 5. Import/export code required? 6. How to file GST in composite scheme or monthly basis? 7. Should I close pvt ltd & start sole proprietorship? 8. How to accounting & income tax return file? 9. What if I do accounting myself on zoho book software? 10. How much money required?
Hi,
1. Compliance's are under Income tax, GST and companies Act, book-keeping.
2. Not recommended because single mistake lands you into notices from the department.
3. GST@18% as you are earning commission on it.
4. Not recommended.
5. Yes
6. Consult CA.
7. Yes
8. Consult CA
9. Not recommended.
10. Consult CA.
Thanks
Hi Rahul,
Hope you are doing well !!
All your queries are answerable.
But, you need to consult with practising CA (personally) for complete understanding.
Hi
Pvt ltd is not necessary.It can be sole proprietor concern also.
It is advisable to get in touch with CA in person and discuss the matter.
Hope it helps
You are necessarily required to have a company you can conduct work just by being a sole proprietor I have heard of many drop shipping business in India being run by individual proprietor besides you don't need huge capital or anything then what's the need for Pvt Ltd also that will lead to lot of increased compliance so it's basically simple and easy to have a proprietary concern.
If you think your turnover will go above 20 lakh then you need to apply for GST.
For all the compliance I would suggest you to talk with the CA one on one.
I think tally or something like that would be more useful or even hiring a accountant.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
