Proprietorship Firm Registration

A proprietorship firm registration is the process by which an individual establishes and formalizes a business under their sole ownership. It's a straightforward and cost-effective way to start a business, especially for small ventures or solo entrepreneurs. The registration typically involves obtaining licenses and permits required for operating within a specific jurisdiction, along with fulfilling any legal obligations such as tax registrations. While proprietorship offers simplicity and full control to the owner, it also means unlimited personal liability, where the owner is personally responsible for all debts and obligations of the business. Overall, proprietorship firm registration is a vital step towards legitimizing a business and laying the foundation for its operations.

Proprietorship Firm Registration

A sole proprietorship firm is the simplest type of business structure in India, owned and managed by a single individual. It is the simplest way to register and start a business.

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Shop License

GST Certificate

MSME Certificate

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Benefits of Proprietorship Firm Registration

Let’s take a closer look at the benefits of Private Limited Company registration in India:

Minimal Compliances:

A proprietorship firm has very minimal compliance requirements which makes it much more preferable option than One Person Company.

Easy to Start:

Sole Proprietorship is not governed by any law and does not require any mandatory registration. Hence, it is the easiest way of starting a business entity.

Lower cost:

As there are minimal compliances, there is no need to hire an auditor for meeting the legal compliance requirements.

Complete control:

As a proprietorship firm is owned by a single person, he has the complete control over the business decisions and there are no interventions of any kind.

Procedure of Sole Proprietorship Firm Registration

Step 1. Application for GST Registration

Depending upon the requirement of the business and GST Law, application for GST registration has to be made with the department. GST registration usually takes around 5-10 working days.

Step 2. MSME Registration

To establish the existence of your proprietorship firm and avail various benefits, you’ll have to file an application for registering your firm as Small and Medium Enterprise (SME) under the MSME Act. It is beneficial for the business at the time of taking out a loan. The government runs various schemes for SMEs to provide loans at low-interest rates.

Step 3. Application for Shop and Establishment License

You are required to obtain a shop and establishment license according to the local laws. It is issued by the municipal corporation on the basis of the number of employees or workers in the firm.

Step 4. Bank Account Opening

Once all the steps are completed, the current bank account should be opened by the proprietorship firm. You can contact us for assistance with your current bank account opening.

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Registrations required for Sole Proprietorship Firm

1. GST Registration


2. MSME Registration


3. Shop and Establishment Act License

Documents required for Sole Proprietorship Registration

1. Copy of Aadhar Card


2. Copy of PAN Card


3. Address proof of office

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Procedure of Sole Proprietorship Firm Registration

Step 1: Application for GST Registration

Depending on the requirements of the business and GST law, an application for GST registration has to be made with the department. GST registration usually takes around 5–10 working days.

Step 2. MSME Registration

To establish the existence of your proprietorship firm and avail various benefits, you’ll have to apply to register your firm as a small and medium enterprise (SME) under the MSME Act. It is beneficial for the business at the time of taking out a loan. The government runs various schemes for SMEs to provide loans at low-interest rates.

Step 3. Application for Shop and Establishment License

You are required to obtain a shop and establishment license according to the local laws. It is issued by the municipal corporation on the basis of the number of employees or workers in the firm.

Step 4: Bank Account Opening

Once all the steps are completed, the current bank account should be opened by the proprietorship firm. You can contact us for assistance with your current bank account opening.

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