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Proprietorship Firm

Get your proprietorship registration at just ₹1,699/- only.

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How to Form a Proprietorship Firm 

About Our Service

A Sole Proprietorship Firm is one of the simplest forms of business structure in India. It is owned, managed, and controlled by a single individual who is personally responsible for all business operations.

Knowing how to form a proprietorship firm helps new entrepreneurs start a business quickly without complex legal formalities. The registration process involves obtaining a PAN, business name, and mandatory licenses such as GST registration, UDYAM (MSME), and local shop establishment certificate.

Ebizfiling helps you create and register a proprietorship firm online by handling every step  from document preparation to applying for necessary registrations  so you can start your business confidently.

A Complete Guide to Forming a Proprietorship Firm

Why Start a Proprietorship Firm?   

  • Simple to start and operate without complex formalities.

  • Complete control and ownership with the proprietor.

  • Minimal compliance and low maintenance cost.

  • Easy to open a current bank account in the firm’s name.

  • Suitable for small traders, freelancers, and local businesses.

  • Quick registration and recognition under UDYAM and GST.

Why Choose Ebizfiling?   

Ebizfiling provides an end-to-end solution for how to start a proprietorship firm in India. Our experts help you register under UDYAM, get GST, and open a business bank account — all online. We provide more expert services as Pvt Ltd Registration, and OPC Registrations.

For expert help, reach us at 09643203209 or email us at info@ebizfiling.com.

Proprietorship Formation 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

Key Benefits of Forming a Proprietorship Firm   

Complete Control

The owner has full authority over decisions, operations, and profits without partner interference.

Simple Registration

Easy to create and start with only basic identification, address, and business proof documents.

Low Compliance Cost

No mandatory ROC filings or annual audits, making it ideal for small business owners.

Tax Simplicity

Income is taxed under the individual’s PAN, eliminating the need for separate company tax filings.

Easy Banking

Proprietorship registration helps open a business current account and build financial credibility.

Flexible Expansion

The firm can easily be converted into LLP or Pvt Ltd as the business grows.

Documents Required to Form a Proprietorship Firm

Proprietorship Firm Formation Documents

  • PAN card of the proprietor

  • Aadhar card of the proprietor

  • Passport-size photograph

  • Registered business address proof (rent agreement/NOC)

  • Electricity bill or utility bill (not older than 2 months)

  • Business name and nature of activity details

  • Bank account proof (if available)

How to Form a Proprietorship Firm (5 Steps)   

1

Share Business Details

2

Apply for PAN/UDYAM/GST

3

Submit Proof Documents

4

Get Online Certificates

5

Start Business

How Ebizfiling Process Helps to Form a Proprietorship Firm ?

  • Consultation: We analyze your business structure and recommend the right type of registrations required.

  • Document Preparation: Our experts prepare accurate documents for PAN, UDYAM, and GST to ensure quick approval.

  • Online Filing: Applications are submitted digitally through government portals for faster processing and transparency.

  • Business License Assistance: We help you obtain shop, trade, or professional tax licenses depending on your business activity.

  • Bank Account Setup: Ebizfiling assists in opening a business current account linked to your firm’s name.

  • End-to-End Support: From registration to post-setup compliance, we ensure your proprietorship is legally ready to operate.

FAQ

FAQs on How to Form a Proprietorship Firm  

Get answers to all your queries

  • What is a Proprietorship Firm?

    It’s a business owned and managed by a single individual who bears full control, profits, and liabilities under their own legal name or brand.

  • How to form a proprietorship firm in India?

    You can create a proprietorship by obtaining PAN, UDYAM (MSME) registration, and a GST number if your turnover exceeds the limit.

  • Is it mandatory to register a proprietorship firm?

    No, it’s not mandatory, but registration under UDYAM or GST provides official proof of business existence and legal recognition.

  • What are the licenses required for a proprietorship firm?

    Depending on your business activity, you may need a Shop Act, GST, UDYAM, or FSSAI license.

  • Can a proprietorship firm have a separate PAN?

    No. The firm uses the proprietor’s personal PAN, as it is not a separate legal entity.

  • What are the advantages of forming a proprietorship firm?

    It’s easy to form, cost-effective, requires minimal compliance, and gives the owner complete business control.

  • How to apply for a proprietorship firm online?

    You can register online with Ebizfiling, which helps file your UDYAM and GST applications digitally with required documents.

  • Can I open a bank account for my proprietorship firm?

    Yes. Once registered, you can open a current account using your registration certificates and business proof.

  • Do I need GST registration for my proprietorship?

    GST is mandatory if your annual turnover exceeds ₹40 lakh (₹20 lakh for services) or if you supply goods interstate.

  • Can foreigners start a proprietorship in India?

    No. Only Indian citizens and residents can form a proprietorship firm under Indian laws.

  • What taxes apply to a proprietorship firm?

    Income from the firm is treated as the individual’s income and taxed under personal income tax slabs.

  • Can I convert a proprietorship into a company later?

    Yes. You can convert your proprietorship into an LLP or Private Limited Company once your business expands.

  • How long does it take to form a proprietorship firm?

    The process usually takes 2–5 working days depending on the registration type and government approval.

  • Is a separate business address required?

    Yes. You must provide a valid business address, which can be a commercial or residential space with owner’s NOC.

  • Can I have employees under a proprietorship firm?

    Yes. You can hire employees and comply with labor laws, PF, and ESIC registrations as applicable.

  • What are the compliance requirements after registration?

    A proprietorship must file GST returns, income tax returns, and maintain basic business records.

  • Can a minor start a proprietorship firm?

    No. Only individuals aged 18 years or above can register a proprietorship legally.

  • Can I register a proprietorship without GST?

    Yes. GST is optional for small-scale businesses whose turnover is below the prescribed limit.

  • How can Ebizfiling help me?

    Ebizfiling handles your entire registration process — PAN, UDYAM, GST, and documentation — ensuring quick approval and accuracy.

  • What proof will I receive after registration?

    You’ll receive digital copies of your UDYAM Certificate, GST Certificate, and business license as proof of firm registration.

Reviews

  • Client Review & Ebizfiling

    Amrish Ganatra

    28 Nov 2017

    "Our Company being an Indian Subsidiary requires much compliance, but ebizfiling has provided us end to end services. They are very important part of our business. They handle all of the legal tasks in India. I highly recommend ebizfiling for non-residents thinking of starting a project in India."

  • Ebizfiling

    Chander Verma

    01 Oct 2019

    Ebiz Filling team did all filling conveniently, team is flexible, approachable. I highly recommend EbizFilling to startups like for all financial services.

  • Ebizfiling

    Amir Abbas Sayedrizvi

    05 Aug 2019

    Charges are very affordable and One of the fastest & bestest service I ever get and miss Snehal is too corporative and very dedicated I had recommended to all my colleagues even they also like thier services.

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