Proprietorship Registration
What is a Sole Proprietorship?
A Sole Proprietorship Firm is the simplest form of business in India, owned and managed by a single individual. It does not have a separate legal entity but is widely used by small traders, shopkeepers, freelancers, and micro-businesses due to its low cost and easy compliance.
At IndiaRaasta, we help entrepreneurs quickly start their proprietorship firm with minimum documentation and affordable fees.
Features of a Sole Proprietorship Firm
- Owned and managed by one person
- Easy to start and operate
- No separate legal entity (owner = business)
- Low cost and minimum compliance
- Best suited for small businesses, retail shops, and freelancers
Documents Required for Registration
A. Personal Documents of Proprietor
- PAN Card (mandatory)
- Aadhaar Card / Voter ID / Driving License / Passport (any one ID proof)
- Passport-size photograph
- Mobile number & Email ID
B. Business Address Proof
- Latest electricity/water/gas bill of business premises
- Rent Agreement (if property is rented)
- No Objection Certificate (NOC) from landlord
C. Registrations Required (as applicable)
Since proprietorship has no specific government registration, the following registrations serve as proof of existence:
- GST Registration (for businesses above turnover threshold or inter-state trade)
- MSME / Udyam Registration (for small businesses & government benefits)
- Shops & Establishment Act License (mandatory in most states for commercial shops/offices)
- Current Bank Account (opened in firm name using registrations above)
Step-by-Step Process
- Choose Business Name – Select a unique trade name.
- Get PAN & Aadhaar Linked – Mandatory for tax filings.
- Apply for Business Registrations – GST, MSME/Udyam, Shops & Establishment (as required).
- Open Current Bank Account – In the name of the proprietorship firm.
- Start Business Operations – You’re ready to trade legally.
Benefits of Sole Proprietorship Firm
- Easy to Start – No complex procedures or high cost.
- Full Control – Proprietor has 100% decision-making authority.
- Low Compliance – Minimal government filings compared to companies.
- Tax Benefits – Income taxed as individual, not as separate entity.
- Quick Bank Account Setup – Open current account in firm’s name easily.
- Suitable for Small Businesses – Ideal for shopkeepers, service providers, and freelancers.
Why Choose IndiaRaasta for Proprietorship Registration?
- All India online registration services
- Guidance on GST, MSME, Shops & Establishment registration
- Affordable packages with no hidden costs
- Quick process with expert support
- Dedicated assistance for compliance & business growth
Frequently Asked Questions (FAQs)
1. Is registration of Sole Proprietorship mandatory?
No specific government registration is required, but GST, MSME, and Shops & Establishment registration act as proof of business.
2. How much time does it take to register a proprietorship firm?
Usually 3–5 working days, depending on applicable registrations.
3. Can I open a bank account for my proprietorship?
Yes, with PAN, Aadhaar, GST/MSME certificate, and business address proof.
4. Is there any government fee for proprietorship registration?
There is no central registration fee; only charges apply for GST/MSME/Shop license.
5. Can a sole proprietorship be converted into Pvt Ltd or LLP?
Yes, proprietorships can be converted later for business expansion and limited liability benefits.
Get Started with IndiaRaasta Today
Start your business quickly with Sole Proprietorship Firm Registration.
- Free expert consultation
- Affordable registration packages
- Pan-India online services
Contact IndiaRaasta today to register your Sole Proprietorship hassle-free!
