Starting a business in India is a big step. But registering your business and filing your taxes the right way is just as important. Whether you’re a small shop owner, a freelancer, or launching a private limited company, this guide will help you understand how to manage your business registration, file your income tax return, and register a partnership firm—all in easy language.

In this blog, we’ll cover:

• How to file an income tax return for a business
• CA charges for ITR filing
• Whether ITR is mandatory for small businesses
• Whether ₹7 lakh income is tax-free
• What company registration services are
• The 4 stages of company formation
• How to register a Pvt Ltd company yourself
• OPC company formation cost
• Steps to register a partnership firm
• Types of partnership firms
• Required documents for partnership registration
• Income tax rate for a partnership firm

Let’s get started!

🔶 How to File an Income Tax Return for a Business

Filing an income tax return (ITR) is a way to tell the government how much your business earned and how much tax you paid. Here's how you can do it:

1. Keep Records: Collect all documents like sales, expenses, profit/loss statement, GST returns, and TDS certificates.
2. Choose the Correct ITR Form:

• ITR-3: For individuals who are in business/profession.
• ITR-5: For partnership firms.
• ITR-6: For companies other than section 8 companies.

To make things easy, many business owners use income tax return services for business from a professional like a Chartered Accountant (CA). They ensure your ITR is filed correctly and on time.

🔶 How Much Will CA Charge for an Income Tax Return?

The fees of a CA depend on the type and size of your business. Here's a rough idea:

If your accounts are complex or audited, the cost will be higher. Many people choose income tax return services for business from reputed online platforms that offer affordable packages.

🔶 Is It Mandatory to File an ITR for a Small Business?

Yes, even small businesses must file an ITR if:

• Your income is more than ₹2.5 lakh per year (for individuals below 60 years).
• You want to claim tax refunds.
• You need a bank loan or business loan.
• You want to apply for tenders or get government benefits.

Even if your income is below the limit, it’s good to file an ITR. Many lenders ask for ITR proof when giving loans.

So yes, income tax return services for business are useful even for small firms.

🔶 Is ₹7 Lakh Income Tax-Free?

Yes, under the new tax regime, income up to ₹7 lakh is tax-free if you claim the rebate under Section 87A. Here's how:

• If your total income (after all deductions) is less than ₹7 lakh, you don’t have to pay any tax.
• But you still need to file your ITR to declare your income.

So, even if tax is zero, filing is still important.

🔶 What Are Company Registration Services?

Company registration services help new businesses become legal entities. These services include:

• Choosing the business type (Pvt Ltd, LLP, OPC, etc.)
• Getting DIN (Director Identification Number)
• Applying for name approval
• Drafting MOA & AOA
• Filing with MCA (Ministry of Corporate Affairs)
• Getting PAN, TAN, and GST registration

Using professional company formation services makes registration smooth and error-free.

🔶 What Are the 4 Stages of Formation of a Company?

Company formation happens in 4 steps:

1. Promotion: Planning and deciding to start the company. Appoint directors and arrange initial funding.
2. Incorporation: Registering the company with the Registrar of Companies (ROC).
3. Subscription of Capital: Collecting money from shareholders.
4. Commencement of Business: Starting operations (needed only for public limited companies).

Most people take help from company formation services to complete these steps properly.

🔶 Can I Register a Pvt Ltd Company by Myself?

Yes, technically you can. The steps are:

1. Get a Digital Signature Certificate (DSC) for directors.
2. Apply for Director Identification Number (DIN).
3. Reserve a name using RUN (Reserve Unique Name).
4. File SPICe+ Form on the MCA website with documents like MOA, AOA, ID proof, and address proof.
5. Get the Certificate of Incorporation.

But many people prefer using company formation services as they know the legal steps, save time, and avoid mistakes.

🔶 What is the Cost of OPC Company Formation?

OPC (One Person Company) is good for solo entrepreneurs. The cost of OPC formation includes:

Total Cost: Around ₹7,000 to ₹12,000 (may vary)

You can save time and effort by using online company formation services which offer packages for OPC registration.

🔶 How Do I Register a New Partnership Firm?

You can do partnership firm registration online by following these steps:

1. Choose a Name: Select a unique name not used by other firms.
2. Create Partnership Deed: This legal document defines the rules, profit-sharing, and duties of partners.
3. Get It Notarized: Sign and notarize the deed with all partners.
4. Apply for PAN: You need a PAN card in the firm’s name.
5. Register with Registrar of Firms: In some states, it's optional, but it’s better to register for legal protection.
6. Get GST Registration (if needed): Required if turnover exceeds ₹20 lakh.

Many startups go for partnership firm registration online because it's simple and affordable.

🔶 What Are the 4 Types of Partnership?

There are 4 main types of partnership firms in India:

1. General Partnership: All partners share profits and are equally responsible.
2. Limited Partnership: Some partners have limited liability.
3. LLP (Limited Liability Partnership): Registered with MCA. Combines benefits of a company and partnership.
4. Partnership at Will: Can be dissolved at any time, based on the agreement.

Each has its own pros and cons. If you want flexibility, go for a general partnership. For legal safety, choose LLP.

🔶 What Documents Are Required for Partnership Firm?

To complete partnership firm registration online, you’ll need:

• Partnership Deed (signed by all partners)
• PAN card of all partners
• Aadhaar card or address proof of partners
• Passport-size photos
• Rent Agreement or utility bill of office address
• NOC from property owner (if rented)

These are basic documents. If you’re taking help from online platforms for partnership firm registration online, they will guide you step by step.

🔶 What Is the Income Tax Rate for a Partnership Firm?

Here’s how partnership firms are taxed in India:

• Flat tax rate: 30% of total income.
• Surcharge: 12% if income exceeds ₹1 crore.
• Health & Education Cess: 4% on tax + surcharge.

For example, if your firm’s income is ₹10 lakh:

• Tax = 30% of ₹10 lakh = ₹3 lakh
• Cess = 4% of ₹3 lakh = ₹12,000
• Total Tax Payable = ₹3.12 lakh

Note: Salaries and interest paid to partners can be claimed as expenses if mentioned in the deed.

That’s why many people use income tax return services for business to calculate and file returns properly.

✅ Conclusion: Start Your Business the Right Way

Starting and running a business in India requires more than just a great idea. You also need to take care of the legal and tax-related work. Whether you’re starting a company or a partnership firm, proper registration and ITR filing help you avoid penalties and grow your business smoothly.

Here’s what we covered:

• Use professional income tax return services for business to stay compliant and avoid errors.
• Take help from trusted company formation services to register your Pvt Ltd, LLP, or OPC.
• If starting with a partner, go for partnership firm registration online for quick and easy processing.

Still confused? Don’t worry. Many CA firms and online service providers can guide you at every step.

Contact Us:

Address: Delhi - 110071

Email: info@vyaparregistration.com

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97 11 633 677

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