Sole Proprietorship Registration2023-08-04T15:36:21+05:30

Online Sole Proprietorship Registration

An individual person (known as a sole proprietor) carries out a sole proprietorship, which is the simplest form of business organization. Therefore, someone who wants to start a business with minimal investment and low compliance costs can opt for this type of business form.

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    Sole Proprietorship Registration

    An individual person owns, manages, and controls a sole proprietorship or sole proprietorship firm. Furthermore, this person is solely responsible for the day-to-day management of the business and the capital arrangement. Moreover, he/she has full entitlement to the profits and losses of the business.

    The sole proprietor completely owns all the assets and resources of the business, and he is entirely responsible for the firm’s liabilities and debts. The sole proprietor’s liability is unlimited which implies that in case of any default in payment of dues or loans, creditors can use his personal property to recover their debt.

    Further, it does not create a separate legal entity from the owner, i.e. the business and the owner are one and the same.

    Moreover, a sole proprietorship does not have any specific government registration in India. However, one can opt for various registrations such as Shops and Establishment registration, GST registrations, MSME (Udyam) registrations, etc. Basically, any person willing to start a grocery store, retail store, boutique, shop, small factory, household shop, etc. can go for a proprietorship firm.

    Various Registrations for Opting Sole Proprietorship 

    • Shops and Establishment Act Registration

    A sole proprietor can register his business under the Shops and Establishment Act (also known as the Shop Act License) of the respective state in which he is carrying out business. Every shop, office, godown, restaurant, cafe, factory, any other establishment, etc. has to obtain this registration from the respective State Labour Department. Also, the procedure for obtaining the Shop and Establishment Registration Certificate differs from state to state.

    • MSME Registration

    MSME registration also known as Udyam Registration recognizes business enterprises as micro, small, and medium enterprises under MSME Act. Accordingly, a sole proprietor may register his business under the MSME Act, which would help him recognize his business and avail various benefits and subsidies under government programs and schemes.

    • GST Registration

    A sole proprietor is recognized as a Supplier under GST. It enables him to collect taxes from customers and issue a GST invoice in return. Registration under GST laws is mandatory for specific suppliers, whereas it is optional and voluntary for others. Altogether, without GST registration, a sole proprietor can neither collect tax from his customers nor claim any input tax credit of tax paid by him.

    Advantages of  Sole Proprietorship Registration

    • Easy to Form

      A sole proprietorship firm is easy to form as it is an unregistered entity. Generally, there is no specific registration mandated by the government to start a new sole proprietorship firm. However, in order to open a bank account for the firm, it is suggested to go for the above-mentioned registrations.

    • Control of Decision making

      In a sole proprietorship firm, all the business decisions are taken by one person, making the business’s functioning simple and easy. In addition, he may bring desired changes in business operations, strategy, structure, etc. without any consent from third parties/partners as he is the sole owner of the business.

    • No minimum capital required

      There is no minimum requirement of capital to start a sole proprietorship firm as per any statute. Therefore, a sole proprietorship firm can be formed even with a minimum infusion of capital (For Example Rs. 1000/-, Rs. 5000/-, Rs. 10,000/- and so on)

    • Lesser Compliances

      Unlike companies and LLPs, a sole proprietorship firm is not regulated by any specific government bodies. Therefore, it is not required to comply with the requirements of regulators like MCA, SEBI, RBI, etc. However, a sole proprietorship firm has to file prescribed returns under GST law, Income Tax law, etc. (as may be applicable)

    • No Sharing of Profits

      In a sole proprietorship firm, the profits from the business would go toward the proprietor. Hence, he can retain all the profits from the business and would not have to share his profits with any third party or partner.

    Minimum Requirements for Sole Proprietorship Registration Online

    • Individual Person as a Sole Proprietor

    • Name of the Business Enterprises

    • Identity Proof of the Proprietor

    • Address Proof of the Proprietor

    What is included in our Sole Proprietorship Registration package?

    • Consultation on the process of change of name

    • Verification of documents

    • Registration under Shops & Establishments Act

    • GST Registration

    • MSME (Udyam) Registration

    • CA Business Certification (wherever required)

    Sole Proprietorship Registration Procedure

    • Collection of required Information and Documents

      In the first step, we shall collect the required information and documents as per the checklist. Then, we shall verify and confirm the documents and information provided and proceed toward the next step.

    • Preparation of Applications for Various Registrations

      Once we receive all the required documents, we shall then prepare the documentation for different kinds of registrations for the Sole Proprietorship firm.

    • Submission of Application

      Once the application is ready, we shall submit the same to respective authorities and make the payment of applicable government fees. Thereafter, a temporary acknowledgment will be provided on successful submission.

    • Get Registration Documents

      After the successful submission of the application, you shall receive the certificate of GST registration for sole proprietorship from the respective authorities within a given period of time.

    • Opening of Bank Account

      Applicants can now submit the registration certificate and other required documents to the bank in order to open the current account and start the business operations.

    Documents Required for Sole Proprietorship Registration

    • PAN card of proprietor

    • Aadhaar card of Proprietor

    • Photograph of Proprietor

    • Name of the Enterprise

    • Contact details such as Mobile Number and Email Id of the Proprietor

    • Address Proof for Firm such as Telephone Bill / Post-paid Mobile Bill / Electricity Bill / Property tax receipt / Municipal Khata Copy / Legal ownership document etc.

    • Any other Information as may be required


    Is it mandatory to register a sole proprietorship firm in India?2021-11-02T17:59:30+05:30

    No, registration of sole proprietorship firm is not mandatory in India. However, in order to open a Bank Account or to obtain any kind of finance or to deal with business supplier a sole proprietorship firm should obtain some kind of registration.

    Does a sole proprietorship firm have perpetual succession or continuous existence?2021-11-02T17:58:53+05:30

    No, a sole proprietorship firm shall not have perpetual succession or continuous existence. A sole proprietorship firm shall be dissolved after death of sole proprietor.

    What is the minimum capital needed to form a sole proprietorship firm?2021-11-02T17:57:07+05:30

    There is no prescribed minimum capital for starting a sole proprietorship firm.

    Can a salaried person or a person in employment form a sole proprietorship firm?2021-11-02T17:55:43+05:30

    Yes, a salaried person or person in employment can form a sole proprietorship firm. However, one needs to check the employment agreement or terms of employment if it has certain restrictions.

    Is it required to have a Sole Proprietorship Firm’s book audited?2021-11-02T17:53:03+05:30

    It is not mandatory for a Sole Proprietorship Firm to get its book audited. However, it shall get its book audited as per Income Tax Law / GST Law if its turnover crosses specified threshold.

    Can I register my Sole Proprietorship Firm on my home or residential address?2022-05-19T12:43:14+05:30

    Yes, you can register the company at your residential address.

    Can NRIs start Sole Proprietorship Firm in India?2021-11-02T17:51:41+05:30

    Yes, NRI’s are allowed to start Sole Proprietorship Firm. However, such sole proprietor has to follow the FDI Guidelines and restrictions for same.

    How can I protect the name of my Sole Proprietorship Firm in India?2022-05-19T12:43:07+05:30

    You can protect the name of your Sole Proprietorship Firm or Brand name by applying for Trademark registration. For more details you can visit –

    Do Sole Proprietorship Firm require TAN registration?2021-11-02T17:42:29+05:30

    TAN is Tax Deduction and Collection number which is required by a proprietor for deducting tax at source (TDS) as per Income Tax laws.

    Can I get Startup Registration for my Sole Proprietorship Firm?2021-11-02T17:16:52+05:30

    No, you cannot get Startup Registration for a Sole Proprietorship Firm. Only a Private Limited Company, LLP and a Partnership Firm are eligible for it. You can visit for more details

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