Sole Proprietorship Registration

Register your firm as Sole Proprietorship and avoid following any legal compliances. Have your complete control over the business with Sole Proprietorship Registration.

To avail our services, we charge 499/- as an advance or security payment.

Sole Proprietorship


India is a country where sole proprietorship registration is been widely followed as the business structure. As this business structure contains very fewer eligibility requirements and legal formalities which makes this structure as very convenient. Besides, the business which is owned, directed and controlled by one sing person can register their business under Sole Proprietorship, since it will help the business to carry out business operations with ease and flexibility.

Somehow, Sole Proprietorship as a business structure is generally chosen by the micro and small companies with less investment, engaging in the unorganized sector. Further, it is also perfect for budding entrepreneurs who want to start their startup. Finally, some of the examples of this business structure are salons, grocery stores, chemist shops, photo studios, etc.


A business structure that is simplest and easiest to form with very minimal compliance and legal formalities. Besides, there is no such formal regulating act designated for ruling the registration of sole proprietorship.

Additionally, the idea of sole proprietorship registration does not possess the status of a separate legal entity, and also, the owner of a sole proprietorship firm is not allowed to be transferred to another individual. Therefore, the existence of the business will come to an end with the death of the owner.

Sole proprietorship


sole proprietorship


Sole Proprietor is the individual who is the registered owner of the sole proprietorship. The sole Proprietor should be a resident citizen of India. Besides, he will be exclusively authorized and liable to all the profits and losses accrued in the firm. 

Therefore, following the structure of the Sole Proprietorship, there is no legal variation between the owner and the business. Moreover, it is suitable to take into attention that a corporate entity is not qualified to become the Sole Proprietor of the firm.


The mentioned below are some major reasons as to why should one choose a Sole Proprietorship Firm:

    • Business activities are carried out very flexibly. 
    • This business structure is one of the ancient, very straightforward, and easily accessible forms. 
    • The entire business is controlled Single-handed. 
    • Quite easy to establish and dissolve.
    • A business that is hassle-free with fewer compliance. 
    • Self-Accountability
    • There only one boss the owner is the only boss. He’s not accountable to any shareholder or director.
    • The owner has all the Decision-Making power
    • The owner does not need to share any profit or loss with anyone else. 
    • Zero chances for any kind of a dispute or conflict between the partners or directors or shareholders


Listed below are benefit Sole Proprietorship Firm:

    1. There is no Mandatory rule to register a Sole Proprietorship firm.
    2. Every easy to establish without much formalities to follow. Any individual can start it very easily. 
    3. Another important benefit that is attached to the theory of sole proprietorship firm is the minimum compliance requirement.
    4. Sole Proprietorship firm doesn’t need to get its books of account audited with the MCA (Ministry of Corporate Affairs) each year.
    5. Any Sole Proprietor’s income falls under the rate of 2lakhs is realized from paying the income tax.
    6. It’s very easy to start a Sole Proprietorship Firm by any single individual.
    7. To get your Sole Proprietorship Firm Registered, there is no minimum limit directed for the capital requirement as it depends upon the sole owner and his will. 

Public Limited Company Meaning - An Overview

For all those entrepreneurs, who are planning to step up huge business like IT infrastructure or a manufacturing plant, etc Public Limited Company or a PLC is the best business structure. Nowadays, most of the people do not prefer Public Limited Company over Private Limited Company. Yet, it will be relevant to take into consideration that if in case an individual is seriously planning something huge and wants to raise capital from the public by issuing shares in return. In that case, incorporating a Public Limited Company is the best option.

A Public Limited Company possesses all the benefits and privileges of a corporate entity mutually with the feature of Limited Liability. Moreover, some of the leading and famous examples of a Public Limited Company are TATA Steel Limited, Reliance Communications Limited, etc.


During the process of incorporating or establishing a Sole Proprietorship in India, there’re only two requirements that are needed to be followed. which are as followed, 

    • Always select a unique and new Business name. 
    • Select is an appropriate location to carry out business.

Once you meet these two requirements, you can legally begin with the business. 

Our Packages


  • All expenses and Government fee
  • Registration of Proprietorship firm
  • TAN Number
  • Firm seal


  • Includes all from Small Package, plus
  • Business Folder
  • 10% Discount on service charges on next order


  • Includes all from Small Package, plus
  • Business Folder
  • 15% Discount on service charges on next order
  • 100 Letterheads & Envelopes
  • 100 Visiting Cards
  • 1 year free TDS Returns


The given below list of documents are required for Sole Proprietorship Registration:

    • Aadhar Card
    • PAN (Permanent Account Number) Card
    • Bank Account
    • Registered Address Proof

Moreover, there is no particular registration required for sole proprietorship registration in India. But, the owner needs to get the mentioned below registration to run a business smoothly and with ease. 

some Other Documents needed For The Registration Of a Sole Proprietorship Firm :
    •  Municipal Authorities issued License or the Certificate
    •  Certificate of CST (Central Sales Tax) or VAT (Value Added Tax)
    • All ITR (Income Tax Returns) documents
    • Certificate granted by the Sales Tax or Service Tax or Professional Tax authorities.
    • Certificate granted by the Food and Drug Control Authorities, IMC (Indian Medical Council)
    • IEC (Import Export Code) assigned to the Sole Proprietor by the office of DGFT (Director General of Foreign Trade)
    • Utility bills in the form of the Water Tax Bill, Electricity Bill, and the Landline Telephone Bills were declared in the name of the concerned Sole Proprietor.

PROCESS OF GETTING sole proprietorship registration india

A Sole Proprietorship is formed by way of various other registrations and licenses. Some of the standard registrations to be followed to obtain a Proprietorship Firm are as follows:


    • MSME Registration: MSME (Micro Small and Medium Enterprises) or the Udyog Aadhaar registration can be obtained in the name of the company, to establish that the Sole Proprietorship firm is registered under the Ministry of Micro, Small and Medium Enterprises.
    • TAN Registration: TAN (Tax Deduction Account Number) Registration should be received for the concerned proprietor from the IT department. But, the said proprietor is required to obtain TAN Registration only if he or she is making salary payments in which TDS (Tax Deducted at Source) deduction is required.
    • Tax Registration: Tax (Goods and Service Tax) registration should be received by the Proprietor if he or she is selling goods or services that surpass the designated threshold of Tax turnover for registration. Moreover, in most of the states, Tax registration is required for those service providers who are having a yearly turnover of more than Rs 20 lakhs, and in the case of dealers, the annual turnover must be more than Rs 40 lakhs.
    • Import Export Code: An Import Export Code (IEC) is to be obtained from the DGFT (Director General of Foreign Trade) in the name of the company. But, the same is possible only in case the said Proprietorship firm is trading in the export and import of goods into India.
    • FSSAI Registration: FSSAI Registration is needed only in the matter where the proprietorship firm is included in the business of selling food products or in the handling of food products. Moreover, an FSSAI registration is received in the name of the Proprietor from the FSSAI (Food Safety and Standard Authority of India). 


The things that needed to be complied with after getting sole proprietorship registration are as follows:

    • TDS (Tax Deducted at Source) Filing
    • ITR (Income Tax Return) filing. 
    • Compliances on Tax (Goods and Service Tax) 
    •  Financial Statements drafting
    • Compliances on Tax Audit 
    • Invoices documentation concerning sales and purchase


 During the registration process, legaltoast provides end to end assistance. 
    • While helping in the process of registration, we will get the form filled on behalf of our client and further assist them in submitting the documents.
    • We will keep track and constantly guide our clients during the entire registration process. 
    • We’re always available for our clients and always keep in touch with.
    • For legaltoast, client satisfaction is supreme
    • We are engaged with the quality work
    • We always assist our clients in resolving their business issues and also assures constant networking of the business.
    • We present instant and quick responses to requests made to us.
    • We have a wide variety of skilled professional and experienced experts who will give friendly knowledge support, affordable hosting solutions and also assures a successful online presence.
    • We at legaltoast support our clients even in the post-incorporation compliance requirements.

FAQs for Sole Proprietorship Firm

No, for a Sole Proprietorship Firm getting registration is not necessary. It is optional and changeable on whether a person wants to register his sole proprietorship or not. But, banks insist on getting a sole proprietorship registered if the owner of the company wants to get a bank account.
Yes, getting Tax Registration is necessary for a Sole Proprietorship Firm particularly in the following listed conditions:
  • If the annual turnover of your business surpasses the limit. 
  • Agents and ISD (Input Service Distributors). 
  • Persons held liable to pay tax under the Reverse Charge Mechanism.
  • The person who provides by way of e-Commerce aggregator
  • E-Commerce aggregator.
  • Producing online data and the information entrance or the retrieval services from any place not in India to a person residing in India, other than a registered taxable person.
The Registration of business that is owned, managed and controlled by a single person. Sole Proprietorship Registration means registering an unregistered business that is owned, controlled, and managed by a single person.
Yes, a Sole Proprietor has the authority to hire an employee. Further, there is no such limitation shown on the maximum number of employees that he or she can hire.
Yes, the Sole Proprietor is regarded as the owner of the company.
Sole Proprietorship Firm as a business structure is preferred by small businesses like the Grocery stores, Photo Studios, Barbershop, and IT consultation services etc.
In the case of a Sole Proprietorship, the concerned Sole proprietor has total control and authority over the business operations and is also entitled to receive all profits.
The compliances that require to be followed once the Sole Proprietorship Firm Registration is done are:
  • File TDS Return 
  • ITR (Income Tax Return) filing 
  • Tax compliances
  • Financial statements drafting 
  • Online tax audit
  • Invoice Documentation of sale and purchase
The benefits attached to the idea of Sole Proprietorship Firm Registration are as follows:
  • Individual’s investment
  • Complete Ownership
  • No sharing of profit or loss 
  • Fewer compliances and formalities
  • Control power
In India, a person can possess many numbers of sole proprietorship firm registered under his or her name. There is no specific restriction or limitations prescribed under Indian Law. Despite, authorized sole proprietor is needed to present valid documents like a valid office address, PAN card, and TAN No for every business he starts.

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