Sole Proprietorship Registration: Complete Guide 2021

Sole Proprietorship Registration: Complete Guide 2021

In the Sole Proprietorship form of business organisation, a business is managed by a single person which does not require any registration as such. Any individual who wants to start a business with less investment can choose this type of business form.

The control of the business is solely in the hands of the single proprietor/owner.

 A single person who wants to start a business from home or on a premise with a minimum amount can opt for this form of business type. Amount required is also minimum.

It falls under the self-employed category and also one can hire employees without worrying about getting added complexities like labour laws compliance, security law compliances etc.

 Sole Proprietorship in India is not a separate legal entity and it has no existence of its own. It is treated as proprietor himself, that is the Sole Proprietorship Firm comprises of an individual person only.

 The sole owner is the authority over GST for the proprietorship firm and the proprietor name owns by single ownership.

Sole Proprietorship Registration in India is mainly intended to enable Sole Proprietors to take legal action against other people in case of any business dispute. This registration gives the Sole Proprietor protection from liabilities towards creditors and employees.

Sole Proprietorship registration also saves Sole Proprietor from paying Income Tax at the corporate level which leads to double taxation for Sole Proprietor.

The Registration in India is done by local authorities which are different for each state. Sole Proprietorship Registration Charges also vary with the status of the Sole Proprietorship firm along with the area/location where Sole Proprietorship registration is being done.

Sole Proprietorship Registration Form no 52

The Sole Proprietors can fill form 52 to register Sole Proprietorship business legally with urban local body or panchayat.

 Sole Proprietorship Registration Form no 53

The Sole Proprietors can fill form 53 to register Sole Propritorship business legally with the Department of Industries or Trade & Commerce.

 Sole Propritorship Registration Forms 53 can be submitted online along with fee payment options.

 Sole Propritorship registration offline has to submit Sole Propritorship registration form 53 along with supporting documents, but Sole Proprietors are required to visit authority personally.

 Sole Propritorship Registration Fees 39 varies from state or local body to other for Sole Proprietorship registration in India.

 Sole Propritorship Registration Charges also vary depending on the status of the firm and area/location where sole proprietorships business is being registered.

 Sole Propritorship Registration Charges 39 is non-refundable. A limited liability company(LLC) also needs this registration.

Sole Proprietorship registration form 54

The Sole Proprietors can fill Sole Propritership registration Form 54 to legalise Sole Propritorship firm with ROCs (Registrar of Companies) for business in India.

Sole Propritorship Registration Forms 54 can be filed Sole Propritorship Registration Fees 39 varies from state to other for Sole Proprietorship business registration in India.

 Sole Proprietorship Registration Charges also vary depending on status of the firm along with area/location where the business is being registered.

Advantages of sole proprietorship

✔The Sole Proprietorship Registration Form no 52, 53 or 54 along with relevant documents at pan number based portal or at the administrative office depending upon the status of registration.

✔The Sole proprietorship registration forms can be submitted online along with fee payment options.

✔The Sole proprietorship registration Form no 52, 53 or 54 as well as supporting documents required for filing as per Central Government rules.

✔The Partial cancellation of the Registered firm by the Registrar on its own or on application from the Registered firm.

Sole Proprietorship Duplicate Certification

The PROPRIETORSHIP DUPLICATE CERTIFICATION for changing/tweaking details of existing registration is required when there are changes in name etc. of registered firm.

The Sole propritorship Duplicate certificate is issued by ROCs (Registrar of Companies) to tweaked/change information as per Central Government service rules and procedures.

This business registration in India is a process of documentation and verification for the Sole propritorship firm with the Registrar of Sole Proprietorships (ROCs) for Sole propritorship business registration in India.

The GST for proprietorship company and to start a proprietorship and the business entity are also mentioned in this certificate. The sole proprietorship documents contain to register business name sole proprietor whose function is business operating.

The Central Government has taken initiative to legalise Indian sole proprietorship firms across the country by providing easy access to information and service. The scheme facilitates the incorporation of new businesses, quick certificate attestation services etc.,

Documentation Task List

 The documents required for registration of Sole Proprietorship are-

 Aadhaar Card. PAN Card. Registered Office proof. Bank Account. The process of filing the articles of association for a company is two steps forward and one step back –



 Step 1: Set up Ready-Made Design Documentation Task List

Step 2: File Articles with Registrar

Step 3: Get Company Seal

Step 4: Organize Books of Accounts

Step 5: Register Accounting Computer Software (ACS)

Step 6: Registration of Employees

Step 7: Tax Filing Process through Online e-filling portal.

As a sole proprietor, you need to comply with the compliances of registering your business for Income Tax and GST purposes.

Income Tax Return filing: Every individual earning an income from Business/Profession needs to file Income Tax Return every financial year. You will have to declare all your sources of income and pay the applicable tax on the same.

GST Registration: If your Turnover is Rs 20 lakh per annum or above, you need to register under GST.

If Turnover is less than Rs 20 lakh per annum then it is easy to start, but you supply goods or services in interstate

The Sole Proprietorship requires opening a bank account in the name of business, registration under the Shop and Establishment Act of respective state, GST Registration. The registration process takes approximately 10 days subject to departmental approval and reverts from respective department.

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What is the eligibility criteria to start a Sole proprietorship?
The process for creating a sole proprietorship in India largely depends on the type of business that is planned to be undertaken. For instance, if an individual is planning to start a medicine shop, he/she usually needs to acquire a Shops & Establishments Registration from local bodies or corporations.

The appropriate registration may also require compliance with various other norms including building-related specifications, safety measures, etc.
What are the required documents for a sole proprietorship?
Document Requirement:

1) Passport Size Photographs: 2 Nos.

2) For Identification PAN Card Copy (Both Front and Back), or Aadhar Card.

3) One Passport Size Photo is to be attached with the CDPO/Municipal Certificate, if available. If not, then one photo should be taken while applying for NOC from Employer / Educational Institute. This photograph will be used only while placing on record in the office and will not be pasted on Passport size certificates.

4) Two Self-addressed stamped envelopes bearing Indian Postal Order.
What are the businesses that commonly run as Sole Proprietorships?
Most local businesses are run as sole proprietorships, from grocery stores to fast-food vendors, and even small traders and manufacturers. That is not to say that businesses cannot operate as sole proprietor.

A business can be run as a sole proprietorship in India by simply registering it under the name of the owner. The owner does not need to register himself with any tax authority or governmental body when he starts his business. He can do so later, when he decides to expand it.
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