- Sole propertiorship. Yes you can use tradename XYZ Global.
- Consult a professional who is aware of liabilities under FSSAI Act or regulations as it is related to FSSAI licence.
Incorporating a New Firm for an Import Business
Hello, I am an entrepreneur looking at starting an import business, particularly importing food products into India. I already have an IEC (Import Export Code) under my individual PAN/ proprietorship name. I further need to register for FSSAI (Food Safety and Standards) license and GST. I have a few queries: Taking into account factors such as costs, compliance, regulations, etc. - which type of firm should I establish initially for this type of business - proprietorship, partnership or LLP (with wife), or OPC? Assuming I go ahead with a proprietorship firm, would I able to use my trade name (XYZ Global) during registering for FSSAI license and GST? With respect to getting a FSSAI license under a proprietorship name, what liability may occur in an unfortunate event of a product recall or an issue with a food product? Please advise. Thank you.
Asked 2 years ago in GST
Dear Sir,
In so far considering only costs, compliance & regulations, sole proprietorship is the easiest setup for you.
However keeping in view the kind of view you seek to venture into, I would suggest you to opt for either Partnership or LLP structure.
Yes, considering you go ahead with a proprietorship firm, you can use your trade name for the respective registrations.
In relation to the scope of liabilities under FSSAI, would request you to connect to a professional dealing in this matter.
Please advise in case of any other clarification.
Thanks & Regards,
CA Aditya Dhanuka.
Hi
Yes you can use your trade name. It is better to go ahead as sole proprietorship.
Looking at cost, compliance and liability LLP would be most suited.
Yes you can use any name to register under fssai and GST.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
If you want to be a long term player and confident about the business model, its better to start in a corporate form and establish brand image, though the cost of compliance is high.
You can do business even as a proprietary concern and have a separate trade name. No issues.
In the case of individual or a partnership concern, your liability is unlimited. In the case of limited companies, your liabilities are limited to your investment, unless you have given personal guarantees for the borrowings or any other business transactions.
I appreciate all the replies and the recommendations suggested. Thank you very much to all of you! With regards to my case and keeping in view the long term horizon, what are the advantages or pros of establishing a partnership, LLP or any other corporate entity rather than a sole proprietorship firm? Also, would there be any pitfalls or disadvantages, if I initially start with a proprietorship entity and later switch (as the business scales up) to any other type of business or corporate entity? Please advise. Thank you.
Asked 2 years ago
It could limit your business liability.
Further if your name becomes big and then you try to open an LLP or company may be it can happen that someone already open a company by that name.
Ask a Chartered Accountant
Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
Ask a CA