What is a Proprietorship?

The sole proprietorship is the easiest business frame under which one can work a business.

The sole proprietorship isn’t a lawful substance. It basically alludes to a man who possesses the business and is by and by in charge of its obligations.

A sole proprietorship can work under the name of its proprietor or it can work together under an invented name, for example, Nancy’s Nail Salon.

The imaginary name is essentially an exchange name- – it doesn’t make a legitimate element isolate from the sole proprietor.

Features

  • Lowest Minimum Compliance.
  • Easy to Start.
  • Complete control.
  • Cheaper compared to other options.
  • Lower Taxes.
  • Easy Exit.

What You Will Get?

  • Registration certificate-MSME

  • Shop Act- Maharashtra state

  • Guidance on GST, Trademark license etc

What We Need?

For Shareholders/Directors

  • PAN Card (Mandatory)
  • Aadhar Card (Mandatory)
  • Bank statement/electricity bill/Mobile bill
  • Electricity bill of the proposed registered address and the NOC from the owner

Ways to start Register Sole Proprietorship business?

There is as no prescribed for Sole Proprietorship business registration in India. So, for registering sole proprietorship business one must get tax registrations and business registrations. However, there are normally 3 ways we suggest for Proprietorship business registration.


  • Register under Shop & Establishment Act
  • Get Udyog Aadhar under Ministry of MSME
  • Get GST registration

Compare Other Options

Headings Sole Proprietorship Partnership Private Company LLP
Governing Law Shop & Establishment Act Partnership Act, 1932 Companies Act Limited Liability Partnership Act, 2008
Separate Legal Existence Doesn’t have Separate Legal Existence Doesn’t have Separate Legal Existence Has Separate Legal Existence Has Separate Legal Existence
Liability of owner Always unlimited Always unlimited Limited if company is limited by shares or guarantee Always limited
Classification No such classification No such classification Limited by shares, limited by guarantee, unlimited No such classification
Agreement Not required Yes. Required. Not required Yes. Required.
Taxation Income of the proprietorship is treated as the income of the proprietor and taxed accordingly. 30% 25% for some companies 30%
Number of persons Minimum one Minimum 2
Maximum 20
Minimum 2
Maximum 200
Minimum 2 partners
Designated partners Minimum 1
Maximum 15
Minimum 2 designated partners
Ownership Owner Partners Shareholders Partners
Name suffix Private limited or Private company suffix LLP
Capital In form of cash and infrastructure only Share Capital Share capital Contribution by Partners

Timeline for the Sole Proprietorship Firm Registration

  • MSME + CA Certification for bank opening (if needed) | 1-2 days
  • GST Registration | 7 days

FAQ