Sole Proprietorship Registration.

A sole proprietorship is very easy to start and involves a minimal government formality. This business registration is the most common type of business registration in India more specifically around small traders and merchants

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Sole proprietorship Registration is quick, simple, and would be possible online with Taxxinn in 3 plain sailing steps

1. Fill Form
Simply fill the above form to get started.
2. Call to discuss
Our expert will connect with you & prepare documents.
3. Get certificate
Get your Company Incorporation certificate

Sole Proprietorship Firm

A Sole proprietorship is a business that is owned and governed by an individual. This business registration is the most common type of business registration in India more specifically around small traders and merchants.There is no specific registration for a sole proprietorship, a business is considered as a sole proprietor company if they have any of the government licenses mostly commonly used one is GST registration.

A sole proprietorship firm comes under an unregistered business entity with full control of a single individual. A sole proprietorship is very easy to start and involves a minimal government formality. This is ideal for small business houses and mostly preferred by unorganized sectors. There is no specific Act to govern this type of registration, there are many ways to register as a sole proprietorship firm.

Registration of Proprietorship

Registering a Sole proprietorship firm does not have a structured procedure or specific Act by the government under which the Sole proprietorship firm has to be registered. For instance, the Sole proprietorship firm is not governed by the state or central government. A Sole proprietorship firm can be started by obtaining any license or tax registration from the government either by state or central government. The following registrations can be used to showcase one's business as a sole proprietorship firm

  • Professional Tax Registration.
  • GST Registration.
  • Shop and Establishment Registration.
  • MSME

A Sole proprietorship firm can have any name they wish to have for there business, there's no barrier for selection of the name for the business. For instance, If the proprietor wants to protect his company name from others using that they can do a trademark registration for there business name which would help them in protecting their brand.

Advantages of Proprietorship


In a Sole proprietorship firm, the proprietor of the business is the owner of the business. The proprietor need not report to anyone neither need to take orders from someone else. There won't be any interference of the third party in the company matters. Hence, Government interference is also very low.

Easy To Establish

A Sole proprietorship firm is very easy to establish relatively compared to other company registration processregistration process. There is no specific procedure to be followed to start a sole proprietorship firm. A Sole proprietorship firm requires some simple registration to be done such as GST, MSME or Shop and Establishment Registration.

Duration Register

A Sole proprietorship firm requires just 5 to 6 days to get itself as a registered company

Basic Documents Required

For registering a Sole proprietorship firm some basic set of documents the proprietor is only required like PAN Card, Aadhaar Card, etc. along with Proof of Address.


Registering a sole proprietorship firm is the cheapest way of registering a business house. Most of the small traders and merchants choose sole proprietorship firms as it is economical to them.

Minimal Compliance

The compliance involved in sole proprietorship firm is minimum as compared to other business registration like PVT or LLP Company. This is one of the most important reasons why most of them in India choose Sole proprietorship firm.

Complete Control

The proprietor is the sole owner of the business. So the business is fully managed and controlled by the proprietor. He has the decision making power he need not depend on others for taking any decisions.


As the proprietor is the sole owner of the business house he need not share the profit with anyone else. Also, the assets of the business are treated as the assets of the proprietor and vice- versa.

Documents Required For Sole Proprietor Firm Registration

In India, a Sole proprietorship firm can't be registered without the submission of proper documents. Identity and address proof is required for the proprietor of the company to be incorporated. Listed below are the documents required for Sole Proprietor Firm Registration.

Documents Required


PAN Card
Aadhar Card

Address Proof

Voter Identity Card
Aadhar Card
Ration Card
Telephone or Electricity Bill
Driving License
Bank Account Statement

Office Proof

Rental agreement
sales deed

Proprietorship Firm Registration Process

Proprietorship registration procedure is easy but a professional would be needed to complete the same. In addition, the procedure has been completely changed by the government in order to promote the ease of doing business. TaxxInn is experienced in Proprietorship registration with an experience of registering more than 12000 Proprietorship and consulting thousands of Proprietorship throughout India.

FAQs on Sole Proprietorship Firm

A sole proprietor is the sole owner of the business.the business that is owned and managed by a sole proprietor.

No, there is no requirement of commercial space to register a Sole Proprietorship Firm. You can register on your residential property itself.
If the utility bill is on another name or the property is rental yes a NOC is required for the address from the person whose name mentioned on the bill.
The proprietor of the business should be a citizen of India and a resident of India.
The sole proprietor firm can be established in 5 working days.
There is no minimum capital required to start a sole proprietorship firm. Therefore, the business can be started with any amount of capital.
No, sole proprietorship firm is not a separate legal entity as both business and the owner are the same.
A sole proprietorship firm does not have a certificate of incorporation.
  • Lack of Resources.
  • Unlimited Liability.
  • Lack of Credibility.
  • It cannot raise funds easily.
  • Can not add Partners.
No, an NRI can't become a sole proprietor in the Sole Proprietorship Firm.
Yes, a Sole Proprietorship Firm can be converted into a company.

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Types of Government Registrations

Recommended For

Ease of Accommodating Investment

Limited Liability Protection

Tax Advantages

Perpetual Existence

Statutory Compliances

Private Limited Company
Limited Liability Partnership
One Person Company
Partnership Firm
Sole Proprietorship

Start-ups and growing companies

Very easy to accommodate


Few benefits



Professional services firms

Possible, but unlikely


Most efficient



Sole promoters

Possible, but severely unlikely


Few benefits



Home businesses

Almost impossible





Small traders and manufacturers