Sole Proprietorship Firm Registration - Online Process, fees and documents

Updated on June 09, 2025 06:06:30 PM

A sole proprietorship business is a general form of business in India. A sole proprietorship business is formed and owned by a single person. It is most suitable for those who want to begin a business with minimal investment. It usually does not need any registration as such.

A sole proprietorship firm may be established at home or in a premise with a minimum amount of money. Business control lies entirely in the hands of the single proprietor/owner who invests in the business. He undertakes all losses of the business and receives all profits. He may appoint people to carry on the business, but the ownership will lie solely with him.

Most local establishments like grocery stores, parlours, boutiques, retail shops, etc., may be set up as a sole proprietorship firm. Even small manufacturers and traders may set up a sole proprietorship firm.

Professional Utilities can help you register a proprietorship firm online, an easy and effective business structure suitable for individual entrepreneurs. You can register your proprietorship firm online quickly and easily with our professional assistance and smooth procedure. Begin your Sole Proprietorship registration online with us and realize the potential of your business concepts.

  • MSME Certificate
  • Shop License
  • GST Certificate
MSME Certificate Sample
Shop License Certificate Sample
GST Certificate Sample

What is a Sole Proprietorship Firm?

Sole proprietorship is a type of business entity which is owned and managed by a single person only. It is not governed by any law and hence it is the easiest form of business in India. All the decisions and management of the business is in the hands of one person.

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Benefits of Sole Proprietorship Firm Registration

Let’s take a closer look at the benefits of Private Limited Company registration in India:

Minimal Compliances:

A proprietorship firm has very minimal compliance requirements which makes it much more preferable option than One Person Company Registration.

Easy to Start:

Sole Proprietorship is not governed by any law and does not require any mandatory registration. Hence, it is the easiest way of starting a business entity.

Lower cost:

As there are minimal compliances, there is no need to hire an auditor for meeting the legal compliance requirements.

Complete control:

As a proprietorship firm is owned by a single person, he has the complete control over the business decisions and there are no interventions of any kind.
Benefits of Proprietorship Firm Registration
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Registrations required for Sole Proprietorship Firm

GST Registration

1. GST Registration

MSME Registration

2. MSME Registration

Shop and Establishment Act License

3. Shop and Establishment Act License

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Procedure of Sole Proprietorship Firm Registration

process of sole proprietorship registration

Step 1. Application for GST Registration

Depending upon the requirement of the business and GST Law, application for GST registration has to be made with the department. GST registration usually takes around 5-10 working days.

Step 2. MSME Registration

To establish the existence of your proprietorship firm and avail various benefits, you’ll have to file an application for registering your firm as Small and Medium Enterprise (SME) under the MSME Act. It is beneficial for the business at the time of taking out a loan. The government runs various schemes for SMEs to provide loans at low-interest rates.

Step 3. Application for Shop and Establishment License

You are required to obtain a shop and establishment license according to the local laws. It is issued by the municipal corporation on the basis of the number of employees or workers in the firm.

Step 4. Bank Account Opening

Once all the steps are completed, the current bank account should be opened by the proprietorship firm. You can contact us for assistance with your current bank account opening.

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Online Proprietorship Firm registration with Professional Utilities

The process of registering your business as a sole proprietorship firm is not much complicated. Our experts at Professional Utilities can make the whole registration process hassle-free for you. Register your firm online in 3 easy steps:

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Step 1:
Get in touch via call or contact form

Step 2:
Provide necessary documents

Step 3:
Get your incorporation registered in 7-10 working days

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Documents required for Sole Proprietorship Registration

Copy of Aadhar Card

1. Copy of Aadhar Card

Copy of PAN Card

2. Copy of PAN Card

Address proof of office

3. Address proof of office

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Documents you’ll get after proprietorship registration


Post incorporation of your sole proprietorship firm, you’ll receive the following documents:


  1. GST Registration Certificate
  2. Shop and Establishment Act License
  3. MSME Certificate

Get Expert Consultation

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Sole Proprietorship Firm Registration Fees

The registration cost for a Sole Proprietorship Firm in India starts at ₹2,999 (excluding government fees). Please note that the government fees vary from state to state, depending on the mandatory registrations required for establishing a proprietorship firm, such as GST registration, MSME registration, and other state-specific licenses.

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Time Required for Sole Proprietorship Registration

The Sole Proprietorship involves obtaining a PAN card for a proprietor, a business bank account, a Certificate of Registration under the Shop and Establishment Act of the concerned state, and GST Registration. Sole Proprietorship Registration takes about 10 days, depending on departmental approval and reverts from the concerned department.

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Conclusion

A Sole Proprietorship is the easiest and least expensive business form for entrepreneurs who desire complete control of their business with few compliance needs. It is best suited for small businesses, freelancers, and self-employed professionals seeking simple setup, tax advantages, and flexibility. However, it has unlimited liability, which means the owner is personally liable for all business obligations.

With Professional Utilities, Sole Proprietorship Registration process will be simple and easy. Start your business today with a legally recognized structure and establish your market presence with ease!

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Why Professional Utilities?

At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.

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Frequently Asked Questions (FAQs)

What is meant by sole proprietorship?

A sole proprietorship is a type of business owned and operated by one individual, where there is no legal distinction between the owner and the business.

Which is better, PVT Ltd or sole proprietorship?

A Private Limited Company (Pvt Ltd) is better if you want limited liability, easy access to funding, and a scalable business structure. A Sole Proprietorship is better for small, low-risk businesses where you want full control with minimal compliance.

How to make sole proprietorship registration?
  • PAN card of the proprietor
  • Name and address of the business
  • Bank account in the name of the business
  • Registration under the Shop and Establishment Act of the respective state
  • Registration under GST, if the business turnover exceeds Rs. 20 lakhs
What is the fee for GST registration for a sole proprietorship?

The fee for GST registration for a sole proprietorship is ₹1,499, including professional assistance, document preparation, application filing, and expert guidance to ensure accurate and hassle-free registration.

How do I register my business as a sole proprietorship?

You can register your business as a sole proprietorship by GST registration. There are additional and beneficial registrations too like MSME, Shop & License License, etc.

What are 3 advantages of a sole proprietorship?

The three advantages of a sole proprietorship are:

  1. Minimal Compliances requirement
  2. Easy to Start
  3. Lower Cost
Do I need a GST number as a sole proprietor?

Yes, one needs to obtain GST registration in order to establish the existence of the proprietorship firm.

How long does it take to register a Sole Proprietorship firm?

On average, it takes around 7-10 working days for registration of sole proprietorship firm in India subject to document verification by the concerned authorities.

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Sole Proprietorship Registration in Other States

Sole Proprietorship Registration in Andhra PradeshSole Proprietorship Registration in Arunachal PradeshSole Proprietorship Registration in Assam
Sole Proprietorship Registration in BiharSole Proprietorship Registration in ChhattisgarhSole Proprietorship Registration in Dadra and Nagar Haveli
Sole Proprietorship Registration in Daman and DiuSole Proprietorship Registration in DelhiSole Proprietorship Registration in Goa
Sole Proprietorship Registration in GujaratSole Proprietorship Registration in HaryanaSole Proprietorship Registration in Himachal Pradesh
Sole Proprietorship Registration in Jammu and KashmirSole Proprietorship Registration in JharkhandSole Proprietorship Registration in Karnataka
Sole Proprietorship Registration in KeralaSole Proprietorship Registration in LadakhSole Proprietorship Registration in Madhya Pradesh
Sole Proprietorship Registration in MaharashtraSole Proprietorship Registration in ManipurSole Proprietorship Registration in Meghalaya
Sole Proprietorship Registration in MizoramSole Proprietorship Registration in NagalandSole Proprietorship Registration in Odisha
Sole Proprietorship Registration in PuducherrySole Proprietorship Registration in PunjabSole Proprietorship Registration in Rajasthan
Sole Proprietorship Registration in SikkimSole Proprietorship Registration in Tamil NaduSole Proprietorship Registration in Telangana
Sole Proprietorship Registration in TripuraSole Proprietorship Registration in Uttar PradeshSole Proprietorship Registration in Uttarakhand
Sole Proprietorship Registration in West Bengal