Sole Proprietorship Registration

JR Compliance- an award winning compliance service provider is equipped with experts and necessary resources to assist you complete the sole proprietorship registration. 

Contact us immediately for sole proprietorship firm registration. 

What is a Sole Proprietorship Firm?

A sole proprietorship firm is a business owned and controlled by a person/sole trader/proprietor. It is the most common type of business commenced by small/ individual merchants and traders. 

Commencing the sole proprietorship firm is effortless because you must fulfill a few compliance requirements to conduct its operations. Thus, it is the most appropriate form of business for small businesses with a few clients. 

Moreover, business structure as a sole proprietorship includes individual freelancers, growing startups, creatives, and settled businesses comprising physical storefronts/workplaces.

What is sole proprietorship registration?

As the name implies, it is a single-person registration of the firm. Its primary aim is to commence a business immediately because it does not require to fulfil any special approval or requirements and perform activities with some compliance and less costing.

Let's start with basic different between companies for better understanding of how a sole proprietorship is different from other forms of business -

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Sole Proprietorship Firm Advantages

A sole proprietorship firm is not required to pay income tax if the sole proprietor’s income is below Rs 2.5 or 3 lakh.

As mentioned, registration of the sole proprietor firm is not mandatory, you can choose any name for your business. However, it should not contravene any laws such trademark registration and other applicable laws.

Also, due to optional registration, other sole proprietors can use the indistinguishable name.

Just like it is effortless to commence a sole proprietorship, you can easily dissolve, terminate or sell the same because you are not required to fulfil any legal formalities such as obtaining TDS. Moreover, you can easily sell the assets of the sole proprietorship firm to an individual or an association.

As mentioned earlier, a sole proprietorship firm is completely managed and controlled by its owner, who holds complete authority and makes decisions with/ without anyone’s consent.

A sole proprietorship is the simplest form of business because its registration is not mandatory nor does it require any formalities. Yet, opening a bank account or acquiring a payment gateway on the business name could be challenging. Consequently, to open a bank account effortlessly, you are required to register your sole proprietor firm.

Among various types of business organizations, a sole proprietorship is least regulated by the government because the government has imposed limited restrictions on the same. 

What Kind of Businesses Can be Sole Proprietorships?

Grocery store
Computer repair services
Tutorial services
Small traders
Fast food vendors
Manufacturing businesses
Home healthcare ( such as cooking meals, cleaning homes, etc.)
and others

Documents Required For Sole Proprietorship Firm

  • Photocopy of PAN card of sole proprietoship.
  • For identity proof, you need to submit a photocopy of your Aadhar card or Voter Identity Card.
  • For the address proof, you need to submit the water or electricity bill.
  • Photographs (passport size).
  • In the case of the Shops and Establishment Act, you are required to submit a sale deed/ ownership proof or rental agreement.


To recapitulate, sole proprietorship registration could be perplexed as it involves acquiring several documents. With that, you need to ensure appropriate documentation, as, without this, your application for the sole proprietorship registration for MSME or GST registration could be rejected. 

Thus, to make the registration process easy, contact JR Compliance-  we guarantee to provide you the most appropriate consultants in obtaining sole proprietorship registration while keeping your convenience insight.

Registration of the Sole Proprietorship Firm

A sole proprietorship firm can be registered mainly under different forms:

1. Registration Under Shop and Establishment Act

A proprietor with a shop needs to do this registration. Registration under this act defines a shop as a premises, 

  • A site where the services are provided to clients. 
  • A location where a person is engaged in selling goods, either as a retailer or wholesaler. 
  • Any place associated with business or trade could be an office, godown, workplace, etc. 

To be noted, it does not comprise a factory, commercial establishment, theatre, etc.

If you satisfy the criteria mentioned earlier, you can register your shop under the Shop and Establishment Act by applying to the local Municipal Corporation of the city.

2. Registration Under GST Registration

You need to register your firm under GST registration if you are engaged in providing of goods and services.  

To be noted, GST registration has replaced the VAT and Service Tax Registration. 

Though, GST registration is the most acceptable way to register your business. However, after registration, you are obligated to meet the requirements. For instance, a sole proprietorship registered under GST registration needs to collect the tax from the customers mandatorily.

3. Registration Through Udyog Aadhar Under Ministry of MSME

Under this registration process, the Ministry of MSME provides a unique identification number to the business. This registration process has replaced the former EM-I and EM-II. 

Registration through Udyog Aadhar allows the availability of loans at low interest rates, including submission of less money deposition for government projects.

Additionally, understanding which type of registration would be better for a business could be tedious and perplexing for an individual as it is not restricted to registration under MSME, Shop and Establishment Act, and GST registration, but it includes other forms too, such as registration under PF (Provident Fund), IEC registration, and other applicable registration on a sole proprietorship. Moreover, the requirement of documents could differ depending on the registration form type. 

Therefore, to resolve all your concerns, we have sole proprietorship registration experts who will assist you throughout the process to avoid every inaccuracy. Thus, we ensure to provide you high standard services by guaranteeing the utmost convenience of our clients.

Our Role in Sole Proprietorship Registration

For a smooth registration process, we will ensure proper documentation. 

Our expert team will assist you in filling the application form.

We will ensure to keep track of your application.

Our team will coordinate with officials to ensure proper follow-ups.

We will provide our assistance in meeting startled requirements if asked by authorities. 

We will directly coordinate with authorities to fulfill all the requirements.

We will provide you with the most satisfactory solution for your concerns.

A man assisting another man in sole proprietorship registration


To recapitulate, sole proprietorship registration could be perplexing as it involves acquiring several documents, understanding which type of registration would be better for a business, etc. With that, you need to ensure appropriate documentation, as, without this, your application for the sole proprietorship registration could be rejected. 

Consequently, to resolve all your concerns, we have sole proprietorship registration experts who will assist you throughout the process to avoid every inaccuracy. Thus, we ensure to provide you high standard services by guaranteeing the utmost convenience of our clients. 

For our excellent services contact us immediately.

Have questions? We've got answers.

Is it mandatory to register a sole proprietor firm?

No, however, it is advised to register a sole proprietor firm because it provides you legal benefits such as ease of opening a bank account in the firm’s name and provide your business with a separate identity similar to a Partnership or Company. 

Does a sole proprietor need to be an Indian resident?

Yes, a sole proprietor needs to be an Indian resident and Indian citizen. However, non-Indian residents could invest in a sole proprietorship after acquiring consent from the government of India.

What capital is required to commence sole proprietorship?

You can begin the sole proprietorship firm with any amount of capital.

Who can be a proprietor?

An Indian citizen and Indian resident can be the sole proprietor. 

Will sole proprietorship firms have a Certificate of Incorporation?

No, a sole proprietorship firm does not have a certificate of incorporation.

How can I transfer my Sole Proprietorship?

The sole proprietorship firm business can not be transferred. However, the assets/ business of the sole proprietorship can be transferred through a sale.

Will my Proprietorship have a separate legal entity?

The Proprietor and PAN card of the Proprietorship firm is the same. Thus, the sole proprietorship firm does not have a separate legal entity.

How is a sole proprietorship different from a One Person Company (OPC)?

Sole proprietorship and One Person Company are two different forms of ownership. In a sole proprietorship, a business is managed and controlled by a person. However, in case of an OPC, an individual can commence the operation as per rules and regulations of laws. Moreover, an OPC is registered under Registrar of Company.


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