Proprietorship

Company Registration Process

Start your proprietorship registration with expert guidance at just 1,699/- only.

Ebizfiling helps you understand the complete process, documents, and legal steps required to register and operate a proprietorship in India.

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Proprietorship Company Registration Process 

About Our Service  

What is a Proprietorship Company in India? 

A Proprietorship Company in India is the simplest form of business where a single individual owns, manages, and controls the entire business. It has no separate legal identity from its owner, which means all profits belong to the proprietor, and all liabilities are borne personally.

It does not require formal incorporation with the Ministry of Corporate Affairs and is usually established through basic registrations such as GST, Udyam (MSME), or Shop and Establishment Certificate. This structure is commonly chosen by freelancers, small traders, service providers, and first-time entrepreneurs who want an easy and low cost way to start their business.

Who Can Register a Proprietorship Company? 

  • Any Indian citizen above 18 years of age who is legally eligible to run a business can register a proprietorship.

  • Individuals with a valid PAN card and Aadhaar card can start a proprietorship without any capital or partner requirement.

  • Freelancers, small traders, consultants, online sellers, and first time entrepreneurs can register and operate as sole proprietors.

  • Anyone who wants full control over business decisions and prefers a simple, low cost business structure can choose a proprietorship.

Proprietorship-Registration-Process-Explained-Clearly

When Should You Register a Proprietorship? 

  • When you are ready to start selling products or services and want to operate legally under a recognized business name.

  • When you need registrations like GST, Udyam, or Shop and Establishment Certificate to run your business smoothly.

  • When you want to open a current bank account in your business name for payments and financial transactions.

  • When you plan to work with clients or marketplaces that require a registered business before onboarding.

Why Choose Ebizfiling for Proprietorship Registration? 

Ebizfiling makes proprietorship registration simple by guiding you through all required registrations such as GST, Udyam, and Shop and Establishment Certificate. Our team helps you choose the right registration based on your business needs, prepares all documents accurately, and completes the filings on your behalf.

You may get in touch with our compliance manager on 09643203209 or email info@ebizfiling.com for free consultation regarding conversion of private limited company to OPC, conversion OPC private limited company, OPC annual filing

Proprietorship Company Registration Charges 

Choose Your Package

ESSENTIAL

1699/-

(All Inclusive)

  • SSI/MSME Registration

ENHANCED

3299/-

(All Inclusive)

  • SSI/MSME Registration
  • GST Registration

ULTIMATE

23499/-

(All Inclusive)

  • SSI/MSME Registration
  • GST Registration
  • Import Export Code Registration
  • Income Tax Filing
  • Accounting (Monthly basis)
  • GSTR 3B Filing (Monthly/Quarterly basis, as applicable)
  • GSTR 1 Filing (Monthly/Quarterly basis, as applicable)
  • GST LUT Filing (if applicable)
  • TDS Returns ( for one year upto 500 entries
  • Form 24Q
  • Form 26Q
  • Form 27Q
  • Generation of Form 16A on quarterly basis
  • Form 16 on Annual basis for upto 5 employees
  • Quarterly Meeting with a Senior for accounts review and tax planning (30 minutes)
  • GST Reconciliation
  • Monthly accounting MIS and Report
  • Dedicated SPOC
  • IEC Renewal, if applicable
  • PF Returns (upto 5 employees), if required
  • ESIC Returns (upto 5 employees), if required
  • Quarterly Advance Tax calculation

 Advantages of Registering a Proprietorship in India 

Business Setup

A proprietorship is easy to start with minimal documents and quick registrations for immediate business operations.

Low Formation Cost

Registration expenses and compliance costs are low, making it ideal for small traders and first time entrepreneurs.

Full Decision Control

The owner has complete authority over business operations, planning, and financial decisions without partner approval.

Easy Tax Management

Income is taxed as personal income of the proprietor, which simplifies tax filing and reduces compliance complexity.

Minimal Legal Formalities

There is no requirement for MCA filings or complex procedures, and only basic registrations are needed to run the business.

Business Changes

The proprietor can modify, scale, or even close the business easily without lengthy legal processes.

Direct Profit Benefit

All business profits go directly to the proprietor, allowing faster reinvestment or personal financial use.

Banking Process

Opening a current account in the business name is easy once basic registrations like GST or Udyam are completed.

 Documents Required for Proprietorship Company Registration

Documents for Proprietorship Company Registration

  • Photos of Proprietor

  • PAN Card of Proprietor

  • Aadhar Card of the Proprietor

  • PAN Card of the entity, if any.

  • Proof of Constitution of Business (Any one – Shop establishment Certificate/Partnership deed/Certificate of Incorporation)

  • Latest Bank Statement

  • Letter of Authority/Board Resolution (Format will be provided by us)

  • Notarized Rent agreement

  • Notarized NOC (We will share the draft)

  • Notarized Electricity Bill of the Registered Office (not older than 2 months)

 Types of Proprietorship Registrations in India 

 Udyam Registration

This registration helps proprietors get recognition as a small business and access benefits like subsidies, loans, and government support schemes.

GST Registration

This registration is needed when turnover crosses the threshold or when the business supplies goods or services across different states in India.

Establishment Certificate

This certificate is required for running a physical shop or office and helps prove the legal status of the business within the local jurisdiction.

Professional Tax

This registration is required in certain states where businesses must pay professional tax for the owner and any employees working under them.

 Stepwise Process of Proprietorship Company Registration 

1

Complete a Checklist

2

Submit documents

3

Verification of Documents

4

Obtain Registration Certificate

5

Obtain PAN and TAN

 What Ebizfiling Does for Proprietorship Company Registration ?

  • We understand your business needs and help you select the right type of registration such as GST, Udyam, or Shop and Establishment.

  • We prepare and verify all documents required for proprietorship registration to ensure accurate and error free filing.

  • We complete the entire registration process on your behalf, including GST application, Udyam filing, and local license approvals.

  • We assist you in opening a current bank account in your business name by providing all necessary registration documents.

  • We guide you on post-registration compliances so you can operate your proprietorship smoothly without missing any legal requirements.

FAQs

FAQs on the Proprietorship Company Registration Process 

Get answers to all your queries

  • What is a proprietorship company in India?

    A proprietorship company is a business owned and controlled by a single individual, and it does not have a separate legal identity from its owner.

  • Is proprietorship registration mandatory in India?

    Formal registration with MCA is not required, but basic registrations like GST, Udyam, or Shop and Establishment are needed to run the business legally.

  • Who can register a proprietorship company?

    Any Indian citizen with a valid PAN card and Aadhaar card who is above 18 years of age can register and operate a proprietorship.

  • How do I register a proprietorship business in India?

    You can register a proprietorship by obtaining Udyam Registration, GST Registration, or a Shop and Establishment License based on your business type.

  • Do I need a business name for a proprietorship?

    Yes, you can choose any business name, and it will be used for GST, Udyam, and bank account purposes, as there is no central approval process.

  • Is a GST number compulsory for proprietorship registration?

    GST registration is required only if your turnover exceeds the prescribed limit or if you sell goods or services across states.

  • Can I open a bank account for my proprietorship?

    Yes, you can open a current bank account using your Udyam Certificate, GST Certificate, or Shop and Establishment License.

  • What documents are needed to register a proprietorship?

    Basic documents include PAN, Aadhaar, address proof, business address proof, and additional documents depending on the registration type.

  • Does a proprietorship require an audit?

    Audit is required only if your turnover crosses the applicable income tax audit limits for the financial year.

  • Can a proprietorship hire employees?

    Yes, a proprietorship can hire employees, and the proprietor is responsible for their salaries, PF, ESI, and other labour compliances.

  • Does a proprietorship need to file annual returns?

    A proprietorship does not file annual ROC returns, but the proprietor must file an individual income tax return every year.

  • Is Udyam Registration compulsory?

    It is not compulsory but highly recommended because it provides MSME benefits, financial assistance, and business recognitions.

  • Can a proprietorship be converted into a company?

    Yes, it can be converted into a private limited company or LLP by following the prescribed conversion process.

  • Does a proprietor have limited liability?

    No, the proprietor has unlimited liability and is personally responsible for all business debts and losses.

  • Is a proprietorship suitable for online businesses?

    Yes, many freelancers, online sellers, and small service providers choose a proprietorship due to its simplicity and low cost.

  • Can foreign nationals start a proprietorship in India?

    No, only Indian citizens and residents can start a proprietorship, as it does not allow foreign ownership.

  • How long does it take to register a proprietorship?

    Registration timelines vary from 1 to 7 days depending on whether you are applying for GST, Udyam, or local licenses.

  • Do proprietorships need to maintain books of accounts?

    Yes, proper books of accounts must be maintained, especially if turnover crosses audit thresholds or GST registration is taken.

  • What taxes apply to a proprietorship?

    Business income is taxed as the personal income of the proprietor under the Income Tax Act based on applicable slabs.

  • How does Ebizfiling help with proprietorship registration?

    Ebizfiling completes all necessary registrations, prepares documents, assists with bank account setup, and provides compliance guidance for smooth business operations.

Reviews

  • Ebizfiling

    Akanksha Kakwani

    19 Nov 2021

    It was a great experience with Anitha from ebizfiling who guided me for doing the IEC renewal.

  • Client Review, Ebizfiling

    Ajit Mehra

    29 Jul 2018

    I had already missed the ITR date until I came across their Facebook post which reminded me of the same. I simply contacted them and they did it all.

  • Client Review, Ebizfiling

    Ajit Gopal Pandit

    20 Feb 2018

    Very efficient service to get yourself registered with your Business. Had a very good experience.

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