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Sole Proprietorship Registration

A sole proprietorship is a business that can be owned and controlled by an individual, a company or a limited liability partnership. There are no partners in the business.

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Sole Proprietorship Registration

Sole proprietorship is the most widespread form of business structure in the world and often regarded as one of the oldest legal ways of doing business in India. The registration process of Sole proprietorship is the most simple one with minimal formalities and compliance procedures as compared to LLPs and Companies.

Sole proprietorship holds a plethora of benefits as compared to other structures for those people who are starting a new business with comparatively less risks. It is preferable for small & medium-sized businesses or for individuals who do not want to get associated with any. Majority of the unorganized sectors prefer going for Sole Proprietorship registration. It is generally termed as “One Man Business Entity” as complete investing in this business is made by a single proprietor who has full authority of the business & its management. Ultimately, He/She is the sole recipient of any profits/loss accrued from the business and is personally liable for his debts.

If you want to own the business under your own legal name and under your own PAN number without getting into too many legal formalities involved in other constitutions, then this will be the fastest and cheapest form of business to start with.

Our Work Process

If you need further clarification regarding the process of our working, do watch this video. It is a step by step guide to understand how to apply for Sole Proprietorship.

Sole proprietorship is a “One Man Business Entity”. choose this option if you want to own the business under own your legal name and under your own PAN number without getting into too many legal formalities involved in other constitutions. This will be the fastest and cheapest form of business to start with.





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  • ₹1500/- PLUS GST




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  • ₹2500/- PLUS GST

Ways to Register

Let’s now understand how an individual can register for sole proprietorship in India. Regardless of the fact that a sole proprietorship does not need any separate registration as such, in order to establish the existence of the business the proprietor is advised to get a few registrations :

➤ Registration under Shop and Establishment Act

Registration of your business under the Shop and Establishment Act will provide you the license or the right of doing business in your locality/state. The registration process is state-wise dependent and you need to check the specific state-wise requirement.

➤ Udyog Aadhaar under Ministry of MSME

A sole proprietor can apply for Udyog Aadhaar under the Ministry of MSME. For proprietors, it enhances the chances of the business to get future loans, an upper hand in various other legal matters and can avail the benefits of the various schemes introduced time-to-time.

➤ GST registration

As per the GST rules, every business/entity that is involved in the buying and selling of goods/services have to register for GST. It is mandatory to get registered under GST if the turnover exceeds the threshold limit of Rs 40 lakhs for trading and manufacturing or 20 lakhs for service industry (Rs 10 lakhs for special category states). Further, if anyone wants to get registered voluntarily even if the turnover is less than the threshold, they can always choose to do so. By getting GST registration, you can keep an eye on your taxation through all the transactions made in the name of the business.


Registering a Proprietorship Online
through SuperCA

SuperCA helps you in registering your a proprietorship firm online, With the technological advancement and the knowledge of our in-house experienced experts, we’ll always be with you during the every course of registration process.

Our services are rendered in obedience with professionalism in an user-friendly, comfortable and secure environment at the lowest possible cost. It is always a better way to hire a professional who is well-versed with these processes as you can indirectly save significant time and money.

Kindly fill the above form and book a Free consultation right now


Documents Required
for Sole Proprietorship


Compliances Required

The compliance requirement for a proprietorship business would differ based on the type and turnover.

Similar to all LLPs and other companies registered in India, proprietorship will have to maintain their compliance which includes filing of Tax return with the Income Tax Department. Income Tax Return must be filed on your behalf of the sole proprietor. If the proprietor's turnover crosses the basic exempted income tax limit then it is mandatory for him to file the Income tax return every year.Failing to do so will attract penalties and unnecessary consequences. Further if the proprietor is liable for Tax Audit, then he/she should also deduct TDS & file TDS return.

If you are registered under GST (It is mandatory to get registered under GST if the turnover exceeds the threshold limit of Rs 40 lakhs for trading and manufacturing or 20 lakhs for service industry (Rs 10 lakhs for special category states) then you need to maintain its compliances also. However, filing of annual reports or accounts with MCA is not needed, as it is also applicable to Limited Liability Partnerships and Companies.


Lists of businesses best suitable
for Sole Proprietorship

Retail Traders

Businesses involved in retail trading tasks, for instance household or electric goods, grocery selling, general shop, merchandise, sweets shop etc. can be done being a sole proprietor. The capital requirements and investments are minimal in this case which promotes the individual in choosing sole proprietorship.

Repair & maintenance Services

Services related to repair and maintenance of automobiles, household appliances, electronic machineries etc. which are frequently provided at local shops, consumer places or garage can be the best suitable sole proprietorship business.

Small Scale home businesses

Small scale home businesses involve less risk that best matches with sole proprietorship business structure.

Local Transportation Services

The local transportation services like auto, e-rickshaw or mini buses require very less capital and just few employees that can suit the interest of sole proprietorship business type.

Software Consultancy services

These services require basic system equipment and can be single-handled with minimal investment.

Tutoring services

Tutions are often provided by proprietors at home or at another suitable place. These services can be provided being a proprietor and thus enjoying the whole sum of profit.

Freelance Writers

Freelancers are independent & can operate from home also. This does not require an organized form of business and they can easily go for sole proprietorship.

Clinic & medical management facilities

In most cases, clinics and small healthcare businesses in their initial stage start as a sole proprietorship business.


Sole Proprietorship vs One-Person Company

OPCs & Sole Proprietorship are two distinct business structures but many-a-times people get confused between the due and assume both to be the same. Let’s distinguish them on the below parameters.

Registration In OPC, the company can be registered under MCA and Companies Act, 2013, whereas Sole Proprietorship Registration is not compulsory in general. It does not require any formal registration as such as it is identified through alternate registrations, such as GST registrations. A proprietor can register if he wants to register his company.
Legal Status Unlike a partnership firm or corporation, sole proprietorship does not have any separate legal identity. It is a limited business structure that connects the business and the business owner. Proprietor and business are indistinguishable from a tax and legal point of view. OPC on the other hand is treated as a private company having a separate legal entity. It has the advantage of corporate status in society.
Compliance In case of a one person company, the compliances are much more strict than proprietorship. This is because the company has to register annual returns, get its accounts audited, and meet other compliances of a Private Limited Company. It would also have to get accounts edited in the same manner as done by a private limited company. Whereas, In a sole proprietorship, In a sole proprietorship, the owner only needs to file the annual returns and the firm is required to get accounts audited only if the annual turnover crosses the threshold limit as specified under the provisions of the Income Tax Act.
Liability Since, One Person Company is a separate legal entity, the owner has liability limited to the extent of share capital, in case the business suffers a loss. This is the most attractive reason why many individuals are opting for an OPC. Whereas, a sole proprietorship’s liability is unlimited, which means all the assets of the individual will be attached and there is no limitation on the liability. Also, Liability extends to his personal belongings as well.
Conversion Conversion of Sole Proprietorship to Private Limited Company is possible but it’s a bit tiresome process. Whereas, the conversion of OPC to Private Limited Company is comparatively easy. OPC has to convert itself into a Private Limited Company if its paid-up share capital exceeds Rs.50 Lakhs and if its average turnover of any three consecutive financial years exceeds Rs.2 Cr.
Succession In a sole proprietorship firm, since there is no distinction between the business firm and the owner, the succession is possible only through an execution of the will. Whereas, one person company must have a nominee designated by its members for the purpose of succession. Only a natural born citizen and a resident of India shall be eligible to be a nominee who in case of death of the member shall take his/her place. OPC is not affected by the death of the member and has continued succession.


Disadvantages of Sole Proprietorship

It’s arduous to build a big business single handedly; hence Sole Proprietorship hampers growth with time . So, if one is looking to expand his/her business then it is advisable that this structure should be converted to another form once achieving growth upto a satisfactory extent. Further, it has other disadvantages like Unlimited Liability, Difficulty in Obtaining Funds, Higher Tax Incidence, Inability to add partners etc.




1. The Proprietor will be legally recognized as a Supplier of Goods & Services



2. The proprietor can claim the Input tax credit (tax paid on the purchase of goods & services)


3. The proprietor can pass on the credit of the taxes paid on the supply of the goods & services to the purchaser.


4. He can make Interstate sales without restrictions • The proprietor can have a competitive advantage in comparison to other businesses


5. Small businesses ( having turnover of less than 1 crore) can opt for composition scheme to lower their taxes


6. In GST, the number of compliances are less as it has replaced all other indirect taxes


No, it's not mandatory but in order to open up a bank account you need GST Registration certificate
• Lack of Resources.
• Unlimited Liability.
• Lack of Credibility.
• Cannot raise funds easily.
• Cannot add Partners.
There are only two Compliances for Proprietorship GST Return ITR Return

Sole proprietorship business does not need any specific registration. However, the owner is advised to get a few essential registrations to make the business function in a better way like registration in Shop and Establishment Act, a GST registration or a Udyog Aadhaar under MSME

We know the fact that registration in this field is not a cup of tea as the information is always scattered across different sites. Super CA is always here to assist you. Our team comprises legal experts, advisors, professional CAs and CSs who are always there with you in every course of action. We guarantee a hassle-free quick & easy process with 100% accuracy in documents at minimum possible cost.

In general, It is optional and it does not require any formal registration as such as it is identified through alternate registrations, such as GST registrations, but a sole proprietor must open a bank account in the name of the business. It is not a corporate or legal entity. As per the law, it is not mandatory but banks insist on getting sole proprietorship registered if you want to open a bank account in the name of your business.
If the business has turnover of Rs 40 lakhs or more during a financial year (Rs 10 lakhs for special category North Eastern states) you should get your business registered under GST.
Few Documents such as PAN, Aadhar Card, Address Proof and Bank account details are needed to be uploaded by you online. You'll get your 15-digit GSTIN (GST identification number) within 4-6 working days and a certificate of registration by the GST department.
  • ➢ Aadhar Card & PAN Card
  • ➢ Bank Account Details
  • ➢ Registered Office Proof
    • -Rent agreement and NOC from a landlord. (If Rented property)
    • -Electricity bill or any other address proof. (If self-owned)


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