PROPRIETORSHIP FIRM REGISTRATION

Proprietorship Firm Registration in India – Complete Guide

What is a Sole Proprietorship?

A Sole Proprietorship is the simplest form of business structure, owned and operated by a single individual. It’s ideal for small traders, freelancers, local businesses, and service providers who want minimal compliance and complete control.

It is not a separate legal entity, meaning the proprietor and the business are treated as one.

Key Features:

• Owned & managed by one person

• No legal distinction between owner & business

• Minimal regulatory compliance

• Suitable for small-scale operations

Advantages:

• Easy to start & operate

• Complete control and decision-making

• Low startup and compliance cost

• No need to share profits

• Ideal for freelancers, consultants, retailers, and traders

How to Register a Proprietorship in India:

While there's no formal registration required under a specific act like companies or LLPs, you can establish your proprietorship through various government registrations depending on your business type:

Step-by-Step Registration Process:

1. Choose a Business Name

   • Ensure it’s unique and relevant to your trade.

2. Obtain Registrations/Licenses (Any one or more of the following):

   • GST Registration – Mandatory if turnover exceeds 20/40 lakhs (10 lakhs for NE states).

   • Udyam (MSME) Registration – For small business benefits.

   • Shop and Establishment License – Required by many state governments.

   • FSSAI License – If dealing with food-related services.

   • Import Export Code (IEC) – For businesses involved in international trade.

   • Professional Tax Registration – As per state rules (if applicable).

3. Open a Current Bank Account

   • Use GST or Udyam certificate and other ID/address proofs for business bank account opening.

Documents Required:

For Proprietor:

• PAN Card

• Aadhaar Card

• Passport-size photo

• Address proof (Utility bill/Bank statement)

For Business:

• Rental agreement or ownership proof

• Utility bill of business address

• NOC from property owner (if rented)

Time Required:

Usually 2 to 7 working days, depending on the registration type (GST, Udyam, etc.)

Compliance Requirements:

• Filing of ITR under proprietor’s PAN

• GST returns (if registered)

• Maintenance of invoices and records

• Annual compliance based on the nature of registrations

Why Choose SSA TAX for Proprietorship Setup?

We at SSA TAX offer quick and hassle-free assistance with:

• GST Registration

• Udyam (MSME) Registration

• FSSAI License

• Shop Act License

• Digital Signature Certificate

• PAN & TAN application

• Income Tax Return Filing