Registration Certificate

Registration Certificate 1. Goods and Services Tax (GST) Registration 2. Professional Tax Registration. 3. Import Export Code (IEC) and Export License 4. Trademark Registration 5. Copyright Registration and Patent Registration 6. ISO Certification 7. NOC from Fire Department 8. Real Estate Regulatory Authority (RERA) Registration 9. Udyam Certificate (MSME)

Registrations License

Registrations License 1. Dangerous Goods License 2. Labour License 3. Security Agency License 4. Trade License 5. Shops and Establishment License 6. Environmental Clearance 7. Food Safety and Standards Authority of India (FSSAI) License

Edit Content

Other Services

Fundraising

NGO

Property & Personal

Lawyers & Experts

Labour Law Advisor
Criminal Lawyer
Labour Lawyer
Consumer
Court Lawyer
Divorce Lawyer
Banking Lawyer
Immigration Lawyer
Family Lawyer
Litigation Lawyer
Intellectual Property Lawyer
Trademark Lawyer

Notice: File your Company Audit before the 30th September deadline. Talk to our expert

Sole Proprietorship

ADTAXS

India’s highest-rated
legal tax and compliance platform.

50,000+ businesses incorporated since 2011

Preeti Sharma CEO

As a sole proprietor, I love the freedom to make quick decisions and have full control over my business. The tax process is also simple and hassle-free, making it easy to manage everything on my own.

Mohit Chhabra Director

I found the information on ADtaxs' Sole Proprietorship page really helpful. It provided clear guidance on the benefits and steps to set up a sole proprietorship, making the process much easier to understand

Vijay Sinha Owner

ADtaxs offers great resources for starting a Sole Proprietorship. Their detailed explanations and user-friendly tools made it simple to get started and ensured I followed all the right steps.

Get ₹1000 cashback* upon your incorporation with our banking partners offer. T&C*

Banking partners

Where Passion Meets Purpose. Your Success, Our Commitment.

₹1499

₹ 999 + Govt. Fee (to be paid later)

Expert assisted process
GST Certificate in 20 - 30 Working days
Company Trade Name
Tax Invoice Formatting
GST Bank Updation One Time

₹2999

₹ 1,499 + Govt. Fee (to be paid later)

Expert assisted process
GST Certificate in 7- 14 Working days
Company Trade Name
Tax Invoice Formatting
Udyam Registration Certificate

Popular

₹24999

₹ 14,999 + Govt. Fee (to be paid later)

1 Year GST Filling
1 Year Invoice & E-Way Bill Support
1 Year Income Tax Filling & Balance Sheet
1 Year Profit and Loss Accounts
Udyam Registration Certificate

Not sure about the packages?

Talk to our experts to kickstart your business registration process.

Companies Act, 2013 (India)

A Sole Proprietorship is not covered under the Companies Act, 2013, because it is not a separate legal entity from the owner. Unlike Private Limited or Public Companies, a proprietorship does not need incorporation under the Companies Act.

Instead, it is regulated through other laws like:

A Sole Proprietorship is the simplest form of business in India, where one person owns and manages the entire business. It does not require complex incorporation or registration under company laws, which makes it quick and cost-effective to start. The proprietor enjoys full control and keeps all the profits, but also bears complete responsibility for any business liabilities. This structure is best suited for small traders, shopkeepers, freelancers, and service providers who want to start their business with minimum compliance and paperwork.

A Sole Proprietorship is the easiest way to start a business in India, where one person owns, manages, and controls everything. It does not create a separate legal entity, meaning the owner and the business are legally the same. This also means the proprietor enjoys all profits but is personally responsible for any losses or debts. Setting up a proprietorship is quick and affordable, usually requiring only basic registrations or licenses as per local rules. Taxes are filed as part of the owner’s personal income, making compliance simple. While it offers full control and flexibility, the structure may limit fundraising options and carries higher personal risk due to unlimited liability.

Advantages of Sole Proprietorship

Easy to Start

Easy to form with minimal legal requirements

Low Cost

– Very affordable compared to other business structures.

Full Control

– Owner has complete authority over decisions and operations.

Direct Profits

– All business profits go directly to the owner.

Simple Compliance

– Fewer legal formalities and regulatory requirements.

Flexibility

– Easy to change or close the business whenever needed.

Here’s a Eligibility Criteria for sole proprietorship:

To start a Sole Proprietorship, there are generally no strict eligibility criteria, as it is the simplest form of business structure. However, there are a few basic requirements and considerations:

Age – The proprietor must be at least 18 years old.
Citizenship – Only an Indian citizen can register a sole proprietorship.
Legal Capacity – The owner should be legally competent to enter into contracts.
Business Address – A valid business place/address proof is required (owned or rented).
Mandatory Documents – PAN Card, Aadhaar Card, and Bank Account in the proprietor’s name.
Licenses/Registrations (if applicable) – Depending on the business type, registrations like GST, MSME, or Shops & Establishment Act may be required.

Here’s a checklist for setting up a sole proprietorship:

Here’s a simple checklist to help you set up your Sole Proprietorship in India:

Choose a Business Name – Select a unique name for your business.
Get PAN & Aadhaar – Ensure you have valid PAN Card and Aadhaar Card.
Open a Bank Account – Open a current account in the business name.
Business Address Proof – Provide rent agreement, utility bill, or ownership proof.
Obtain Required Registrations – Apply for GST, MSME (Udyam), or Shops & Establishment license as applicable.
Register for Local Permits – Get trade license or other approvals depending on your business activity.
Maintain Records – Keep invoices, bills, and accounts updated for compliance.

Here’s a Required Documents for sole proprietorship:

Here’s a list of documents required to register a sole proprietorship. The exact requirements may vary by country or region, but generally, the following documents are commonly needed:

Identity Proof – PAN Card of the proprietor
Address Proof – Aadhaar Card, Voter ID, or Driving License
Business Address Proof – Rent agreement, utility bill, or property papers
Bank Account Details – Current account in the proprietor’s/business name
Passport-size Photograph of the proprietor
Additional Registrations (if applicable) – GST Certificate, MSME (Udyam) Registration, Shops & Establishment License

Types of Sole Proprietorship

A sole proprietorship typically refers to a single-owner business, but there are various types or forms it can take, depending on the nature of the business and the owner’s preferences. Here are some common types of sole proprietorships:

Trading Business

– Small shops, retail stores, wholesalers, general merchants.

Service Providers

– Freelancers, consultants, designers, tutors, small service agencies.

Manufacturing Units

– Small-scale production, home-based manufacturing.

Online Businesses

– E-commerce sellers, digital product creators, dropshipping.

Professionals

– Doctors, lawyers, accountants running individual practice.

Local Businesses

– Restaurants, salons, gyms, repair shops, etc.

Features of Sole Proprietorship

A Sole Proprietorship is simple and cost-effective, offering full control to the owner with minimal compliance and easy operations.

Single Ownership – The business is owned and managed by one individual.
No Separate Legal Entity – The owner and the business are legally the same.
Unlimited Liability – The proprietor is personally responsible for all debts and obligations.
Easy Formation & Closure – Minimal paperwork, quick setup, and simple to close.
Full Control – The owner makes all decisions independently.
Profit Retention – All profits belong solely to the proprietor.
Taxation as Personal Income – Business income is taxed as part of the owner’s personal income.
Limited Capital & Resources – Capital depends mainly on the owner’s personal funds.

To register a Sole Proprietorship in India-

To register a sole proprietorship in India, the process is simple and requires only a few formalities. The first step is to choose a business name that reflects your brand identity. You will need to keep your basic documents ready, such as PAN Card, Aadhaar Card, address proof, and a passport-size photo. It is advisable to open a current bank account in the business name to manage transactions smoothly. Depending on the nature of your business, certain registrations may be required, such as GST registration if your turnover crosses the prescribed limit or if you are involved in inter-state trade, MSME (Udyam) registration to avail government benefits, and Shops & Establishment license as per state regulations. In some cases, additional permits or licenses may be necessary, such as FSSAI for food businesses. Once registered, it is important to maintain proper records, file tax returns on time, and renew licenses whenever needed. Although not compulsory, obtaining business insurance and consulting a professional advisor can help protect your business and ensure compliance.

FAQ's

1. What is a Sole Proprietorship?

A Sole Proprietorship is the simplest form of business where a single person owns, manages, and controls the entire business.

2. Is registration of a Sole Proprietorship mandatory in India?

No, there is no formal incorporation under the Companies Act. However, registrations like GST, MSME (Udyam), or Shops & Establishment may be required depending on the business.

3. How long does it take to register a Sole Proprietorship?

Generally, it can be set up within a few days, depending on the type of registrations and licenses required.

4. What documents are required to start a Sole Proprietorship?

Basic documents such as PAN, Aadhaar, address proof, passport-size photo, and bank account details are required. Additional documents may be needed for GST or other licenses.

5. Can a Sole Proprietorship be converted into another business structure later?

Yes, a Sole Proprietorship can be converted into a Private Limited Company, LLP, or other structures when the business grows or needs expansion.

At ADTAXS, we are committed to providing expert consulting services to help your business succeed. Our specialties include comprehensive tax solutions, legal advisory, and essential business registration.

Quick Links

Useful Links

Visit Us

Please note that we are a facilitating platform enabling access to reliable professionals. We are not a law firm and do not provide legal services ourselves. The information on this website is for the purpose of knowledge only and should not be relied upon as legal advice or opinion.

Company Registration

International Company Setup