PAN Card & Aadhaar Card
Passport-size Photograph
Address Proof (Bank Statement/Electricity Bill)
Rent Agreement & NOC (if rented)
Latest Utility Bill (Electricity/Water Bill)
Terms & Conditions
Business Nature Review
Kanoons will recommend licenses depending on your business type and turnover.Government Timelines Apply
Registrations like GST and Shop License are subject to processing timelines of government portals.Document Accuracy
All submitted documents must be valid and updated. Incomplete or mismatched documents may delay registration.State-wise Variations
Shop Act and Professional Tax requirements vary by state. Charges may differ accordingly.Refunds
Refunds will not be issued once registration forms are submitted on government portals.Disclaimer
Kanoons acts as a facilitator for documentation and application filing. Government approvals are subject to authority discretion.
Proprietorship
Start your business with the simplest and most flexible structure—ideal for small traders, freelancers, and local businesses.
A Sole Proprietorship is the most basic form of business entity in India, owned and managed by a single person. It doesn’t require registration under any specific act but must obtain applicable licenses or registrations based on the nature of the business.
This structure is perfect for freelancers, retailers, small shopkeepers, or service providers, who want to start operations quickly with minimal legal formalities.
At Kanoons, we help you get your sole proprietorship recognized through essential registrations such as GST, MSME (Udyam), and Shop & Establishment License—ensuring you are legally compliant and ready for growth.
Why Choose Sole Proprietorship Company? (Advantages & Disadvantages)
Advantages:
- Simple and quick to start
- Complete control by owner
- Minimal legal compliance
- Low cost of formation and maintenance
- Suitable for low-risk and local businesses
Disadvantages:
- No limited liability—owner is personally liable
- No separate legal identity
- Cannot raise capital through equity
- Difficult to attract big clients or investors
- Not suitable for scalable or high-risk businesses
Who Should Register an Sole Proprietorship?
- Freelancers and consultants
- Small retailers and traders
- E-commerce sellers on Amazon, Flipkart, etc.
- Home-based businesses
- Service professionals (e.g., photographers, tutors, designers)
- Individuals testing a business idea.
Documents Required for Sole Proprietorship Registration
Proprietor Documents:
- PAN Card & Aadhaar Card
- Passport, Voter ID
- Passport-size Photograph
- Address Proof (Bank Statement/Electricity Bill)
Business Address Proof:
- Rent Agreement & NOC (if rented)
- Latest Utility Bill (Electricity/Water Bill)
Proprietorship Registration Process (Step-by-Step)
- Consultation to identify licenses needed
- Business name selection (optional)
- Apply for PAN (if not available)
- GST Registration (if applicable)
- Udyam Registration under MSME
- Shop and Establishment Registration
- Open a current account in business name
What’s Included in Our Sole Proprietorship Registration Package?
- GST Registration (if required)
- MSME (Udyam) Registration
- Shop & Establishment License (select states)
- Professional Tax Registration (where applicable)
- Bank Account Opening Support
- Business Consultation
Post-Incorporation Compliances for Public Limited
✔ Maintain books of accounts
✔
File Income Tax Return as individual (ITR-3 or ITR-4)
✔
GST Return filing (if registered)
✔
Business registration renewals (where applicable)
✔
Maintain invoices and expense records
Why Kanoons?
🌟 Quick registration under MSME, GST, Shop Act
🌟
Name and document verification
🌟
Expert guidance on choosing applicable licenses
🌟
Post-registration compliance support
🌟
Affordable packages tailored for small businesses
Failure to meet Sole Proprietorship obligations can result in severe consequences:
- ₹200 per day for late GST return filing
- Penalty up to ₹25,000 for not registering under Shop Act (varies by state)
- Interest and penalties for non-payment of tax
- Possible business suspension for non-renewal of local licenses
Valuable insights to change your startup idea
FAQ
Sole Proprietorship's Frequently Asked Question
Is registration of a sole proprietorship mandatory?
No, the structure itself doesn’t require registration, but licenses like GST, Udyam, or Shop Act may be mandatory depending on business type and location.
Can I open a business bank account for my proprietorship?
Yes, once you have a GST or Shop Act certificate, you can open a current account in your business name.
Is a sole proprietorship taxed differently?
No, the business income is taxed under the individual’s income tax slab.
Can I register a brand name under sole proprietorship?
Yes, you can register a trademark for your brand separately to protect your business identity.
How long does it take to register?
Basic registration like GST or Udyam can be completed within 2–5 working days, depending on document readiness.
Can I convert it to a Private Limited Company later?
Yes, proprietorships can be converted to companies or LLPs for growth and scalability. Kanoons can help with that transition too.
Get Started Today!
Incorporate Your Sole Proprietorship Now & Get Legal Compliance Support!
Limited-Time Offer
Get Your Sole Proprietorship Registered at ₹3,999!
Take the first step towards building a legally recognized and protected business. With Kanoons, experience a hassle-free, fully online Sole Proprietorship Registration backed by expert legal and compliance support.
"Simplifying Law & Taxation – Your Compliance, Our Commitment."
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Kanoons.com, owned and operated by Kanoons Law & Tax Consultants Private Limited, is your trusted partner for taxation, legal compliance, and business registration across India. Whether you are an individual, a startup, or a growing enterprise, we provide expert guidance to navigate complex financial and regulatory landscapes seamlessly. From income tax filing, GST registration, and business incorporation to responding to legal notices, handling corporate audits, and trademark protection, we ensure a hassle-free experience.
Our expert team assists in income tax and TDS filing, simplifying tax compliance for salaried individuals, businesses, and professionals. We provide startup registration, MSME certification, IEC code, FSSAI licenses, trade licenses, and corporate compliance solutions to ensure smooth business operations. Entrepreneurs and businesses can also rely on us for intellectual property rights (IPR), including trademark, copyright, and patent registrations, along with legal support for litigation, summons, and regulatory matters.
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For support, queries, or legal consultation, contact our expert team today and experience 100% compliance with accuracy and efficiency.
"Kanoons helped me get GST and Udyam registration for my graphic design business in just 3 days!"
Rajeev K. Freelancer