Doc Summary
Overview
A Sole Proprietorship is the simplest and most common form of business ownership in India. It is managed and controlled by a single individual, who is personally responsible for all business decisions, profits, and liabilities.
It is not a separate legal entity — the owner and the business are treated as one. This structure is best suited for small businesses, traders, freelancers, and independent professionals seeking flexibility and minimal compliance.
Eligibility / Who Should Apply
- Individuals looking to start a small business with full ownership
- Freelancers, local traders, service providers, and small-scale manufacturers
- Entrepreneurs preferring low setup cost and easy management
- Businesses with limited capital and a single owner
Key Features
- Single owner with full control over business operations
- Easy to establish and manage with minimal paperwork
- Income is taxed under the proprietor’s individual PAN
- Flexible and cost-effective business structure
- Suitable for small traders, shopkeepers, and service providers
Step-by-Step Process
- Select a Business Name: Choose a unique trade name for your proprietorship.
- Obtain Business Registrations:
- Udyam (MSME) Registration for government recognition and benefits.
- Shop and Establishment License (if you have a physical office or shop).
- GST Registration (mandatory if turnover exceeds the threshold limit).
- Open a Bank Account: Use registration documents and PAN to open a current account in the business name.
- Start Operations: Begin business activities using the trade name on invoices and records.
Documents Required
- PAN and Aadhaar of the proprietor
- Passport-size photo
- Proof of business address (Rent Agreement / NOC / Ownership Proof)
- Electricity or utility bill for address verification
- Registration certificates (GST / Udyam / Shop License, as applicable)
Timeline
The entire registration process can be completed within 3–5 working days, depending on the type of licenses required.
Post-Registration Requirements
- Maintain basic financial records and invoices
- File Income Tax Returns (ITR) annually under the individual’s name
- Renew Shop License or GST registration periodically (if applicable)
- Maintain updated records of business transactions and expenses
Penalties for Non-Compliance
- Operating without mandatory licenses (like GST or Shop License) may attract fines
- Failure to file income tax returns may result in penalties under the Income Tax Act
- Non-renewal of state-level licenses may lead to suspension of operations
Kanoons Service
Kanoons Law & Tax Consultants Pvt. Ltd. provides complete Sole Proprietorship Registration services for individuals starting new businesses.
Our services include:
- Guidance on applicable registrations (GST, Udyam, Shop License)
- Preparation and filing of registration applications
- Assistance in obtaining business licenses and opening bank accounts
- Post-registration compliance support and renewals
Kanoons ensures your business setup is fast, compliant, and operational with minimum effort and paperwork.
Why Choose Kanoons
- 100% online and hassle-free registration process
- Transparent pricing with no hidden fees
- Fast service completion with expert documentation
- End-to-end assistance from registration to compliance
- Trusted by thousands of small business owners across India
