Sole Proprietorship Registration
The lightest way to trade in your own name — established through Udyam, GST and shop registrations rather than one incorporation act, with every fee explained before you commit.
- Professional fee
- From ₹1,769
- Working timeline
- Confirmed after scope review
- Government charges
- Shown before payment
Built for
One owner
Best when
Lowest cost, lightest compliance
Is a sole proprietorship
right for you?
Pick it when starting now, at the lowest cost, matters more than building a legal structure.
You trade alone
The business runs in your own name with no partners or co-owners.
You want the lightest filings
No company registry filings — only the registrations your activity needs.
Personal tax suits you
Profit is filed as your personal income at your own slab, often the cheapest position at small turnover.
You accept personal liability
There is no legal separation between you and the business.
Proprietorship
Best when starting now matters more than structure.
Your personal assets are on the line.
A proprietorship has no separate legal identity — the business's debts and obligations are yours personally, and equity investors cannot join without converting to a company.
What you receive,
ready to use.
A proprietorship is not created by a single incorporation act. It comes into being through the registrations that apply to your activity — Udyam for small-business recognition, GST where required, and the state's Shops & Establishments registration in most states. We assess the combination, file it, and quote the exact cost before work begins.
ready to trade.PAN · Udyam · GSTIN
Udyam (MSME) registration certificate
GST registration, where your business requires it
Shops & Establishments registration, where the state requires it
Guidance to open a PAN-linked current account
A written tax and filing calendar for the year
What must be
in place.
One individual owner, who must be an Indian citizen and resident in India.
A valid PAN and Aadhaar in the owner's name.
A business address with proof of the premises — home addresses are generally acceptable.
GST registration when turnover crosses the threshold, when selling on e-commerce platforms, or for interstate taxable supply.
There is no single incorporation act. A proprietorship is established through the registrations it holds — Udyam, GST where required, and the state's Shops & Establishments registration in most states.
Compare the common structures
A starting point only. Tax and legal outcomes depend on your facts.
| Decision | Private limited | LLP | OPC | Proprietorship |
|---|---|---|---|---|
| Owners needed | 2 or more shareholders | 2 or more partners | 1 member plus a nominee | One owner |
| Liability | Limited to shares held | Limited to agreed contribution | Limited to shares held | Personal liability |
| Outside investment | Set up for equity funding | Not suited to equity investors | Converts before raising equity | No equity shares |
| Annual filings | Company filings and audit thresholds | Lighter filings, audit above turnover limits | Company filings, some relaxations | Usually the lightest |
| Running cost | Highest of the three | Moderate | Moderate to high | Lowest |
| Common fit | Startups, teams hiring or raising | Professional and service partnerships | A single founder wanting a company | Small owner-led businesses |
From decision to
trading.
A practical sequence. Timelines for licences and registrations vary by state.
Name and Udyam registration
Day 1–2
We handle
Finalise the trade name, assess which registrations apply, and file the Udyam registration in your name.
You provide
Share your Aadhaar, PAN and business address details.
GST registration
Day 2–7
We handle
Assess whether GST applies — by turnover, activity or sales channel — and file the registration until the certificate is issued.
You provide
Provide address proof, bank details and photographs for the application.
Shop & Establishment registration
State timeline
We handle
File the state's shop licence where required and advise on any additional local licences for your activity.
You provide
Provide employee details, if any, and the premises documents.
Current account and setup
Day 8–10
We handle
Hand over the registration certificates and the filing calendar your bank and accountant will ask for.
You provide
Open the current account in the trade name and start billing.
A checklist without
the back-and-forth.
We ask only for records or data relevant to your application, review, or audit scope.
- PAN card
- Aadhaar card
- Recent passport-size photograph
- Mobile number and email linked to Aadhaar and PAN
Before you begin
Use clear PDF, JPG, or PNG files.
Keep address records recent and readable.
Choose the support
you actually need.
Every total separates professional fees, GST, and stated government charges. State stamp duty and exceptional filings may vary.
Essential
3-5 days
payable now, GST included
- Professional fee
- ₹1,499
- GST @ 18%
- ₹270
- Payable now
- ₹1,769
- Eligibility check with a chartered accountant
- Documents prepared, reviewed and filed
- Certificate handed over with the next steps
Standard
Recommended3-5 days
payable now, GST included
- Professional fee
- ₹3,499
- GST @ 18%
- ₹630
- Payable now
- ₹4,129
- Eligibility check with a chartered accountant
- Documents prepared, reviewed and filed
- Certificate handed over with the next steps
Not included automatically
- — State-specific licence fees, which vary widely and are confirmed in your quote
- — Professional tax registration, required in some states
- — Trade licences for regulated activities such as food or chemicals
- — Trademark filing for the trade name
Costs that can repeat
- — Income tax return each year (ITR-3, or ITR-4 under presumptive taxation)
- — GST returns, where GST registration is held
- — TDS returns, where employees or rent bring TDS obligations
- — Renewal of the shop licence, where the state prescribes a validity period
Setup is the start,
not the finish.
These are the recurring tax and filing obligations to plan for as a proprietor.
Income tax return
Annually
ITR-3, or ITR-4 where presumptive taxation under sections 44AD or 44ADA applies.
GST returns
Monthly or quarterly
Applies only where GST registration is held; the scheme decides the frequency.
TDS returns
Quarterly
Applies where you employ staff, pay rent above the threshold, or make other TDS payments.
Advance tax
Quarterly
Where total tax liability crosses the prescribed threshold.
Got questions?
We’ve got answers.
Get clarity on what a proprietorship actually is, what it costs, its taxes, and when to graduate to a company.
Still deciding?
AI CA can compare structures around cost, risk, compliance, and funding.