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proprietorship company registration

Proprietorship Company Registration

Small business owners and entrepreneurs favour registering a proprietorship firm in India due to its simplicity and convenience of operation. 

A proprietorship firm is a business structure owned and controlled by a single individual, making it a popular alternative for individuals who wish to start a small business on their own. 

Obtaining a PAN and TAN card, selecting a unique name for the firm, and opening up of bank account comprise the registration procedure, which is rather basic. This article discusses the quickest method for proprietorship company registration in India and the service providers who can assist with the registration procedure.

What Are the Essential Certificates Required for Registering a Proprietorship Company?

PAN Card

Without A PAN, you cannot file your income tax return. Immediately apply for a PAN number if you do not already have one. Online applications for PAN cards cost around Rs. 110. You must submit a scanned copy of your photo, identification, and address documentation to apply.

After Aadhar e-KYC verification, the form can be submitted online. NSDL verifies the PAN card application upon receipt and issues the PAN number within seven to eight days if the information is accurate. In addition, the registered address receives a physical copy of the PAN card within fifteen to twenty days.

Account at a commercial bank

After obtaining your PAN, you can register an account at any bank. In addition to your Aadhaar number and PAN, you must also provide proof of identification and address. To open a current account, you must provide bank staff with proof of GST registration.

Documentation of Registered Office

A rental agreement and the landlord’s NOC are necessary if the property is rented. Electricity or any other utility bill, or the deed if the property is privately owned.

Registrations Required For A Sole Proprietorship

In addition to the documents listed above, a few registrations are required to confirm the existence of the company:

Registration as an SME

You can register your business as a Small and Medium Enterprise (SME) under the MSME Act . The application may be electronically submitted even though it is optional; registering as an SME has numerous advantages, notably when asking for a business loan. The government sponsors various low-interest credit programs for small and medium-sized enterprises.

Shops and Establishment Permit Act

A Shops and Establishment Act License is required to comply with local restrictions. It is distributed based on the type of business and the number of employees. In general, all sole proprietors who operate a store or other form of business are obliged to obtain this licence.

Enrolling for GST

If your annual revenue reaches Rs. 20 lakhs, you can register for the Goods and Services Tax (GST). You must also obtain a GST number to operate an online business (selling on Flipkart, Amazon, etc.).

The following documents are required to register for GST:

  • PAN card, photo, and Aadhar card of the owner
  • Proof of a business’s location (rent agreement or electricity bill)
  • A copy of the bank statement (mentioning bank account number, address and IFSC code)

The GST site makes Tax registration straightforward. The GST number is typically obtained 3–4 days following the submission of the application.

What Is the Affordable Way to Register for a Proprietorship Company?

These are the stages of incorporating a sole proprietorship:

  • Acquiring a PAN card.
  • After applying for or receiving a PAN card, the following step is for the sole proprietor to register a business name.
  • The next step is to get a bank account in the business’s name. This account will be utilised for all business-related transactions.
  • A sole proprietorship must refrain from registering explicitly to begin operations but must get a few key registrations to conduct business. In addition to other basic registrations, a sole proprietorship must get a Registration Certificate under the Shops and Establishments Act of the state where the business is located.
  • If the annual turnover of a sole proprietorship exceeds Rs. 20 lacs, it must register for GST.
  • Although unnecessary, the sole proprietorship would benefit by registering as a Small and Medium Enterprise (SME) under the MSME Act.

As a sole owner, you must file an annual income tax return. You must file your GST Return if you are enrolled for GST. When subject to a tax audit, a sole proprietor must further deduct TDS and make a TDS return.

Deadlines for registration of sole proprietorships

A sole proprietorship must open a bank account in the company’s name, receive a Certificate of Registration under the state’s Shop and Establishment Act, and register for GST. The registration process takes around 10 days, pending departmental clearance and returns from the respective departments.

Who Are the Service Providers Who Assist in Registering a Proprietorship Company?

Several chartered accountants, company secretaries, and internet service providers offer registration services for proprietorship businesses. Instafiling is one of the most prominent consulting websites in India. To ensure a quick and hassle-free registration process, selecting a renowned and trustworthy service provider is essential.


In India, creating a proprietorship corporation is a straightforward procedure that can be accomplished in a few stages. The process entails obtaining a PAN and TAN card, deciding on a distinctive company name. While the process is basic, it is essential that all required documents are filed properly and that all information provided is accurate.

After completion of the registration process, the sole proprietorship is legally recognised and can begin operations. However, it is crucial to note that while a sole proprietorship has numerous benefits, it also has limits, such as limitless liability and restricted access to finance. Before registering a proprietorship firm, it is vital to assess the benefits and drawbacks carefully.

Many service providers assist in registering a sole proprietorship to facilitate the registration procedure. Selecting a renowned and trustworthy service provider to complete the registration without any issues is crucial. In that case, you can trust our experts at Instafiling, without any doubt.

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