Sole Proprietorship Registration Online in India
The fastest and simplest way to start a business on your own. We register your proprietorship with the right government registrations for your business, such as GST, Udyam (MSME) and Shop & Establishment, so you get certificates in your business name, can open a current account and start billing customers.
- GST and Udyam in your business name
- Fixed price, no hidden charges
- Shop & Establishment, trade licence
- Bank account, GST and website help
What is a sole proprietorship?
A sole proprietorship is a business owned and run by one person. It is the simplest form of business in India: there is no separate law or incorporation, and the business and the owner are legally the same person.
Because there is no single "proprietorship registration certificate", a proprietorship is established through registrations in the business name, such as GST registration, Udyam (MSME) registration, a Shop & Establishment licence or a municipal trade licence. These give your business an official identity, let you open a current account in the business name, and help you win customers.
It is ideal for shopkeepers, traders, freelancers, consultants, home businesses and anyone testing a new idea, because it is quick, low cost and has very little compliance. The owner keeps all the profit and makes every decision.
The trade-off is unlimited liability: the owner is personally responsible for all business debts, and the business ends with the owner. As you grow, you can move to a One Person Company or a Private Limited Company for limited liability.
Benefits of a sole proprietorship
Fastest & cheapest to start
No incorporation, no stamp duty and no MCA fees. Most proprietorships are set up within days.
Full control
You make every decision and keep 100% of the profits, with no partners or shareholders.
Minimal compliance
No ROC filings, board meetings or company audit. Mainly your income tax return, and GST returns if registered.
Taxed as an individual
Profits are taxed at your personal slab rates, and small businesses can use the simple presumptive taxation scheme.
MSME benefits
With Udyam registration you can access priority-sector loans, government schemes, tender benefits and protection against delayed payments.
Easy to close or upgrade
Closing is simple, and you can move the business into an OPC or a Private Limited Company later.
Requirements to start a sole proprietorship
Almost anyone can start one. These are the basics.
- 1One owner, an Indian citizenAn adult individual with a PAN and Aadhaar. NRIs and OCIs can own one with conditions; other foreign nationals need RBI approval.
- 2A business nameAny name that doesn't copy an existing brand or trademark, and doesn't use words like "Limited" or "Company".
- 3A place of businessA shop, office or your home address, with an electricity bill and rent agreement or NOC.
- 4A bank accountA current account in the business name, opened using registrations in that name.
- 5No minimum capitalStart with whatever amount your business needs. There is no capital requirement.
- 6Business-specific licencesSome businesses need extra licences, such as FSSAI for food or an Import Export Code for international trade.
Sole proprietorship registration plans
Fixed professional fees. GST and Udyam registration have no government fee; state licence fees, where they apply, are paid at actuals.
Starter
The two registrations most proprietors need to start.
₹999₹1,999+ GST & govt. fees where applicable
- GST registration
- Udyam (MSME) registration
- Business name check
- Current account documents guidance
- Invoice format for your business
- Shop & Establishment licence
- Trademark application
Standard
Complete setup for shops, offices and service businesses.
₹2,499₹3,999+ GST & govt. fees where applicable
- Everything in Starter, plus:
- Shop & Establishment registration (govt. fee extra)
- Professional tax registration, where applicable
- First month's GST return filing
- Dedicated expert on WhatsApp
Premium
Launch-ready: registrations, brand protection and an online presence.
₹7,999₹11,999+ GST & govt. fees where applicable
- Everything in Standard, plus:
- Trademark application, 1 class (govt. fee extra)
- 1-page business website with .in domain
- 1 business email ID (1 year)
- Google Business Profile setup
- Priority handling on every step
GST at 18% applies to the professional fee. Government fees for Shop & Establishment, trade licence and trademark are paid at actuals. Need something different? Build your own package below.
Build your proprietorship registration package
Every business needs a different mix of registrations. Tick the ones you need and see the total cost instantly. Not sure? Tap a business type to pre-select the usual ones.
Total estimated cost
₹0 all-inclusive
GST and Udyam registration have no government fee. Shop & Establishment, trade licence and professional tax fees are set by your state or municipality and are paid at actuals; your final quote confirms them before you pay.
Documents required for sole proprietorship registration
Scanned copies or phone photos are enough. No office visits are needed for GST or Udyam.
Owner (proprietor)
- PAN card
- Aadhaar card (linked to your mobile for OTP)
- Passport-size photograph
- Email ID and mobile number
- Bank account details (cancelled cheque or statement)
Place of business
- Latest electricity bill, property tax receipt or municipal document
- Rent agreement if rented
- No Objection Certificate (NOC) from the owner
- Photo of the shop or office with the name board, if your state asks for it
Business details
- Business name and nature of business
- Date of starting the business
- Number of employees (for Shop & Establishment and Udyam)
- Investment in plant, machinery or equipment and expected turnover (for Udyam)
- List of goods or services (for GST)
Tip: most banks ask for two documents in the business name to open a current account for a proprietorship, such as the GST certificate and the Udyam certificate or Shop & Establishment licence.
How to register a sole proprietorship: step by step
The whole process is online. You only approve a few OTPs.
Free consultationDay 1
Tell us what your business does and where. We tell you exactly which registrations you need, and nothing you don't.
Documents on WhatsAppDay 1
Share your PAN, Aadhaar, photo and address proof. We prepare all the applications.
Udyam (MSME) registrationDay 1–2
Filed online on the Udyam portal using your Aadhaar and PAN. The certificate is usually issued quickly.
GST registrationDay 2–7
We file the GST application with Aadhaar authentication. Small, low-risk applicants can get GSTIN in about 3 working days; otherwise it takes about 7 working days, or longer if the officer orders physical verification.
Shop & Establishment / trade licenceAs per state
If your state or city requires it, we apply for the Shop & Establishment registration or municipal trade licence.
Current account & go liveDay 5–10
With registrations in your business name, open a current account and start billing. We also help with your website and Google Business Profile.
Timelines depend on government portals and verification. Shop & Establishment and trade licence timelines vary by state and city.
Which registrations does your proprietorship need?
There is no single proprietorship registration. These are the common ones and when you need them.
- GST registrationAbove ₹40L (goods) / ₹20L (services) turnover, or for selling goods to other states, including online
- Udyam (MSME)Free and recommended for every small business, for loans and scheme benefits
- Shop & EstablishmentFor shops, offices and commercial premises, as per your state's law
- Trade licenceFrom your municipal corporation for certain trades in the city
- Professional taxIn states that levy it, for the owner and any employees
- FSSAICompulsory for any food business: making, selling or delivering food
- Import Export CodeNeeded to import or export goods and many services
- TrademarkTo protect your brand name and logo from copycats
Sole proprietorship vs One Person Company vs LLP
Running the business alone or with a partner? Here's how the options compare.
| Feature | Sole Proprietorship | One Person Company | LLP |
|---|---|---|---|
| Law | No specific law | Companies Act, 2013 | LLP Act, 2008 |
| Owners | 1 | 1 member + 1 nominee | 2 or more partners |
| Liability | Unlimited (personal) | Limited | Limited |
| Separate legal entity | No | Yes | Yes |
| Setup cost & time | Lowest, a few days | Moderate, 7–10 days | Moderate, 10–15 days |
| Annual compliance | Lowest (ITR, GST) | AOC-4, MGT-7A, audit, ITR | Form 11, Form 8, ITR |
| Income tax | Personal slab rates | Company rates (22% / 25% / 30%) | 30% + surcharge & cess |
| Continuity | Ends with the owner | Continues via nominee | Perpetual |
| Best for | Shops, freelancers, small traders | Solo founders wanting limited liability | Partners, professionals |
Compliance for a sole proprietorship
Compliance is light, but tax and GST deadlines still apply. Ask us about our monthly accounting and GST filing plans.
- Right awayOpen a current accountKeep business money separate from personal money for clean accounts and easy tax filing.
- Within 30 daysGST registration when requiredApply within 30 days of crossing the turnover limit or starting a supply that needs GST.
- On any changeUpdate your registrationsAmend GST, Udyam and licences when your address, business or contact details change.
- As requiredRenew licencesRenew Shop & Establishment, trade licence or FSSAI where your state or licence requires it.
- Yearly · 31 Aug / 31 OctIncome tax return (ITR-3 or ITR-4)Filed in your own name by 31 August, or by 31 October if a tax audit applies.
- If applicableTax auditRequired when turnover crosses the tax audit limits, or in some presumptive-tax cases.
- Monthly / quarterlyGST returnsGSTR-1 and GSTR-3B, or quarterly returns under QRMP, or CMP-08 under the composition scheme.
- QuarterlyAdvance taxPay in instalments if your tax for the year is ₹10,000 or more (presumptive-tax businesses can pay it all by 15 March).
- QuarterlyTDS returnsIf you are required to deduct TDS, for example on rent, contractor or professional payments above the limits.
- OngoingBooks of accountsKeep sales, purchase and expense records, which are required once income or turnover crosses the limits.
Income tax for sole proprietors
A proprietorship isn't taxed separately. Business profit is added to the owner's income and taxed at individual rates.
Taxed as an individual
Profit is taxed at your personal slab rates. Under the new regime, the rebate means no tax for most taxpayers with income up to ₹12 lakh (excluding special-rate income such as capital gains).
Presumptive scheme for business
Small businesses can declare 6% (digital receipts) or 8% of turnover as profit and skip detailed books, within the turnover limits.
Presumptive scheme for professionals
Eligible professionals can declare 50% of gross receipts as profit, within the receipt limits.
Tax rules change with each Finance Act; talk to our CA team for advice on your case.
More than registration: Start, Build and Grow with one team
Most firms stop at the certificate. We help you open the bank account, get GST, go online and win your first customers.
Register & stay compliant
Experts for GST, Udyam, licences, trademark, accounting and income tax filings, all at fixed prices.
GST registrationGet your business online
Professional website, .in domain, business email and Google Business Profile, so customers can find and trust you.
Website plansReach more customers
WhatsApp Business API, bulk SMS, cloud telephony, SEO and ads to grow sales from day one.
WhatsApp APISole proprietorship registration: frequently asked questions
How do I register a sole proprietorship in India?+
There is no single registration for a proprietorship. You establish it by getting registrations in your business name, usually GST and Udyam (MSME), and a Shop & Establishment licence or trade licence if your state or city requires one. These let you open a current account in the business name.
What is the cost of sole proprietorship registration?+
Our plans start at ₹999 + GST for GST and Udyam registration. GST and Udyam have no government fee. Shop & Establishment and trade licence fees are set by your state or municipality. Use the package builder on this page to see the cost for the registrations you need.
Is GST registration mandatory for a proprietorship?+
GST is compulsory once turnover crosses ₹40 lakh for goods or ₹20 lakh for services (lower in some states), or if you sell goods to other states, including through e-commerce platforms. Many proprietors register voluntarily so they can claim input tax credit and work with businesses that need GST invoices.
Is Udyam registration free?+
Yes. Udyam (MSME) registration on the government portal has no fee. It needs your Aadhaar and PAN, and the certificate is issued online. It helps with bank loans, government schemes and tenders, and protection against delayed payments from buyers.
Which documents do I need to open a current account for a proprietorship?+
Banks usually ask for two documents in the business name, such as the GST certificate, Udyam certificate, Shop & Establishment licence or trade licence, along with your PAN, Aadhaar and address proof. Requirements vary slightly from bank to bank.
Can I run a proprietorship from home?+
Yes. Your home address can be your place of business. You will need an electricity bill or property document, and a rent agreement and owner's NOC if the home is rented.
Do I need a separate PAN for my proprietorship?+
No. A proprietorship uses the owner's personal PAN. Its income is shown in the owner's income tax return.
How is a proprietorship taxed?+
Business profit is added to your personal income and taxed at individual slab rates. Small businesses can use the presumptive scheme, declaring 6% (digital receipts) or 8% of turnover as profit, and eligible professionals can declare 50% of receipts, within the prescribed limits.
Which income tax return does a proprietor file?+
Usually ITR-3, or ITR-4 if you use the presumptive taxation scheme and qualify for it. For business income without a tax audit, the return is due by 31 August; if a tax audit applies, by 31 October.
Is a proprietor personally liable for business debts?+
Yes. A sole proprietorship has unlimited liability: the owner and the business are the same legal person, so business debts can be recovered from personal assets. For limited liability, consider a One Person Company or a Private Limited Company.
Can an NRI or foreign national start a sole proprietorship in India?+
NRIs and OCIs can own a proprietorship on a non-repatriation basis, except in agriculture or plantations, real estate business, print media and sectors closed to foreign investment. Other foreign nationals, or investment you want to send back abroad, need RBI approval. Talk to us about your case.
Can I change my proprietorship into a company later?+
Yes. You can incorporate a One Person Company or a Private Limited Company and transfer the proprietorship's business, assets and liabilities to it through a business transfer, subject to tax conditions.
Do I need Shop & Establishment registration?+
Most states require shops, offices and commercial establishments to register under their Shops and Establishments Act, usually within a set period of starting. Rules, exemptions and fees differ by state. We check what applies to you.
Can I get a trademark for my proprietorship's brand?+
Yes. You can apply for a trademark in your own name as the proprietor. Individuals and small businesses pay a reduced government fee of ₹4,500 per class for online filing.
How long does it take to set up a proprietorship?+
Udyam is usually done in a day or two, and GST in about 3 working days for small, low-risk applicants or about 7 working days otherwise, so most proprietorships are ready to open a bank account and start billing within 5–10 days. State licences can take longer depending on the state and city.
What will I receive?+
You receive the certificates for the registrations you choose, such as the GST registration certificate (GSTIN), the Udyam certificate and the Shop & Establishment licence, plus guidance to open your current account and start billing.
Ready to start your proprietorship?
Talk to an expert today. Get your exact cost on WhatsApp in minutes, with no obligation.
Disclaimer: IBACT Digital (IBACT Innovations Pvt Ltd) is a private consultancy, not a government body. Government and licence fees are paid to the authorities at actuals. Information on this page is for general guidance and is based on GST, MSME and tax rules as of 2026.