Overview
A sole proprietorship is a business owned and run by one person. It is not a separate legal entity: the business uses the owner's PAN, and the owner is personally liable for its debts. It is the simplest way to start trading.
There is no single law or certificate that 'registers' a proprietorship. Instead, the business is identified through registrations that apply to it, such as GST registration (when required or chosen), Udyam registration as an MSME, and the shop and establishment registration under your state's law. Banks usually ask for two such documents in the business name to open a current account.
Our team works out which registrations your business actually needs, files them, and gives you a checklist for the current account and invoicing.
Who needs it
- Individuals starting a shop, trade, service or online business on their own
- Freelancers who need a business identity and a current account
- Small traders who must register for GST because of their turnover or the way they sell
Documents required
What we usually ask for. Our team confirms the exact list for your case before anything is filed.
- PAN and Aadhaar of the proprietor
- Proof of the business address (rent agreement or ownership document, utility bill)
- Bank account details
- Photograph of the proprietor
How it works
- 1
Work out what applies
Based on your activity, turnover, state and how you sell (online, inter-state), we tell you which registrations are mandatory and which are useful.
- 2
Udyam registration
A free, online, Aadhaar-based MSME registration that gives the business a recognised identity.
- 3
GST registration (if needed)
Required above the turnover threshold, for most e-commerce sellers and for inter-state supply of goods; optional otherwise.
- 4
Shop and establishment registration
Under your state's shops and establishments law, where it applies to your premises.
- 5
Bank and invoicing checklist
We help you put together the documents a bank asks for to open a current account in the business name.
Typical timeline
Udyam registration is issued online. GST registration follows the CGST rules (see our GST registration page), and shop registration depends on your state's process.
Get a free quote
Answer a few questions and our team will contact you. It takes about two minutes.
Official sources
The government portals and laws this page is based on:
Please note