Proprietorship in India

Registration Process and Starting a
Proprietorship in India.

A proprietorship/sole firm is a business that is claimed and run by a single person. When a business is owned and governed by one person that simply refers to a person who owns the business, personally responsible for its debt it is called a sole proprietorship company. The proprietor and the business are dealt with indeed the same.

Every business needs registration under Shop & Establishment Act, whether it is offering a service or merchandise. Other registrations such as GST, depending upon the nature of the product/service.

Sole Proprietorship is the easiest type of business setup done in India since it is not governed by any specific registration or requirement. Under sole ownership, the compliance's are negligible and simple to fulfill.


  • Aadhar Card
  • PAN Card
  • Bank Account
  • Registered office proof
  • Although the sole proprietor doesn’t need any particular registrations, he is advised to get a couple of enlistments to make his business work easily.
Registering as MSME

You can get yourself registered as a Micro, Small and Medium Enterprise (MSME) under the MSME Act, 2006. The application can be documented electronically. In spite of the fact that it isn't mandatory to enroll as an MSME, it is highly useful, especially at the hour of taking an advance or loan for the business.

Shop and Establishment Registration

This permit isn't compulsory at all spots, yet it is needed to be acquired by the local laws. It is given by the municipal corporation and is given based on the number of employees.

GST Registration
The documents required for registering GST–
  • PAN card, Photo, and Aadhar Card of the proprietor
  • Business address proof
  • Bank statement copy

Advantages of Proprietorship Firm

Ease of setup- The business visionary can begin activities and get installments from customers as no registration is needed to begin Proprietorship.
The Ease of compliance- of a Proprietorship is that it requires no extra consistency in most cases The PAN of the owner and ownership is indeed one and the same. Consequently, as a rule, only income tax return in Form ITR-3 should be recorded every year.
Ease of dissolution- The owner doesn't need to especially end up the company in a case that he needs to stop tasks.

business work easily
register as a sole proprietorship
How to register as a sole proprietorship?

As mentioned before, there is no stiff protocol to enroll in a Sole Proprietorship. Only GST registration and bank account in the name of the firm will be good to start a business.

  • The Process to register Proprietorship online
  • Step 1: Pan Card and ID for address verification of owner.
  • Step 2: Registered address verification (e.g. Latest electricity bill + rent agreement, etc.)
  • Step 3: Two government registration reports affirming the name and address of the business (shop and establishment registration, GST etc)

How much to pay for
Proprietorship Firm?

Proprietorship Firm would vary from INR 4999/- to INR 12999/- depending upon the plan you choose.

Gold Plan
Gold Plan
₹ 11999/-   ₹ 7999/-
Package Includes
  • GST Registration
  • PAN (if applied)
  • Advice of GST filing and compliances
  • Submission of MSME Form
  • Submission for Shop & Establishment registration
Silver Plan
Silver Plan
₹ 7499/-   ₹ 4999/-
Package Includes
  • GST Registration
  • PAN (if applied)
  • Advice of GST filing and compliances
Platinum Plan
Platinum Plan
₹ 19499/-   ₹ 12999/-
Package Includes
  • GST Registration
  • PAN (if applied)
  • Advice of GST filing and compliances
  • Submission of MSME Form
  • Submission for Shop & Establishment registration
  • Preparation and Finalization of Accounts and Balance Sheet
  • Assistance and filing of Income Tax return
  • Trademark
  • TDS Filing for 4 Quarters
  • No extra time and less paperwork needed.
  • Proprietorship is owned and run by a single person.
  • Digital Signatures are not required for GST registration of Sole Proprietorship firms.
  • It saves time as no extra business registration is required.
  • All the documents need to be provided within stipulated time frame as FilingByExpert will not be held responsible for any delayed or late payment. Any tax payment or late fee on GST filing will be entirely borne by the client.
Plan Offer

frequently asked questions

frequently asked questions
What a sole proprietorship firm?
It is a small, one-person firm. Remember, this is not a company; rather, it is the most cost-effective and compliant way to start a business in India. For legal registration, only one person is needed.
Since a sole proprietorship has no legal status, the main goal is to open a current bank account. However, banks need legal evidence to open a current bank account under your business name rather than your personal name, so you must apply for at least one tax registration certificate to open a Proprietorship current bank account.

When it comes to financial and other costs, sole proprietorships are the most cost-effective business model. The simplest of the legally recognized business frameworks is the sole proprietorship. A tax filing separate from  personal income is not needed for sole proprietorships. Of course, there are many distinctions between sole proprietorships and companies, but these are some of the most notable.

You and your proprietorship are the same person in the eyes of the Income Tax and related legal regulations. This ensures that any benefit you make as a sole proprietor is included in your personal profits. Your personal and firm’s tax return will be combined into one. You should keep in mind, however, that sole proprietors might be liable for some tax credits. Self-employed people, for example, get a regular tax deduction and a modified tax rate to compensate for their lack of employer-provided benefits.
Yes, as a sole proprietor, you are legally responsible. Limited liability insurance is available to businesses working as companies and limited liability partnerships, although it is not available to sole proprietors. Instead, you will be held directly liable for the debts and legal judgments incurred by your company. If you are unable to pay your debts, your personal assets, such as cars and real estate, can be used to help you.
Sole Proprietorships do not have to go through the registration hoops as limited partnership or company. You may normally only announce your desire to act as a sole proprietorship instead.

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