Prop. Documents:


Other Documents:

Electricity Bill
Rental Agreement

Includes: Registration
Duration: 7 Working Days


A Sole proprietorship is one of the oldest and handiest Business Structure to begin in India. A proprietorship is a type of organisation this is owned, controlled, and managed through manner of one individual – who’s the proprietor. As the proprietorship and proprietor are one and the equal, it’s miles very smooth to start and there are very minimal compliance necessities. As the owner and the organization are one and the equal, a proprietorship can not have other companions or shareholders. Further, there’s no restrained criminal duty protection for the owner from the economic business enterprise sports activities activities performed within the handiest proprietorship. Hence, this kind of commercial employer entity is first-rate great for each small organizations without a greater than 5 employees. Kanoons let you in registering a Sole Proprietorship, a easy and green business employer form that is right for solo entrepreneurs. With our professional guidance and streamlined approach, you could start your proprietorship quick and trouble-unfastened. Start your Sole Proprietorship with us and release the capacity of your industrial enterprise mind.

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Proprietorship Registration in India

Registering a proprietorship in India follows a completely unique approach, as there is not a dedicated authorities-set up registration approach for this enterprise structure. Instead, a proprietorship earnings recognition thru tax registrations mandated with the beneficial useful resource of applicable laws and rules.One pivotal tax registration is the GST (Goods and Services Tax) Registration, which have to be secured underneath the proprietor’s name to formalize the corporation’s proprietorship reputation. This registration way that the owner is engaging in business corporation in the framework of a proprietorship.

Essential Licenses and Registrations for Proprietorships

To run a proprietorship in India, you need crucial licenses and registrations, together with:

  1. Get a Permanent Account Number (PAN) and an Aadhaar card on your business enterprise identity.
  2. Register underneath UDYAM, which recognizes your commercial enterprise as a Micro, Small, or Medium Enterprise (MSME) and gives authorities benefits.
  3. If your corporation exceeds unique thresholds, you should join up for Goods and Services Tax (GST) to gather and pay GST.
  4. Open a separate bank account in your enterprise to manage charge variety without difficulty.
  5. Depending in your organization area, sign up under your country’s Shops and Establishment Act to observe neighborhood labor regulations.

Advantages of Proprietorship

Easy registration: Sole proprietorship does now not have any formal incorporation or dissolution manner – as its the same as the Proprietor. However, to perform a agency, the owner may should reap positive registrations and licenses to be compliant with the legal recommendations and policies of India.

Lower compliance: As most proprietorship are best registered with government departments like Income Tax & GST, the compliance burden can be lower. On the other hand, entities like LLP or Company are registered with the Ministry of Corporate Affairs and ought to file severa statutory returns and be audited with the aid of a Chartered Accountant each yr.

Simplicity: As there are not any partners, shareholders, or directors, the proprietor can with out problem carry out this industrial employer with minimal documents and consent requirements. Hence, this form of agency structure is brilliant applicable for very small organizations.

Business choice: In a proprietorship, the economic company proprietor takes all commercial enterprise picks. There isn’t always any consent or approval required from every other man or woman. Hence, a proprietor can generally take quick choices regarding his employer affairs.

Complete manage: As sole proprietorship is owned only via the proprietor. He/she has entire control over the belongings, income, expenses and all commercial corporation operations.

Disadvantages of Sole Proprietorship

Funding: This type of business structure is predicated completely on one individuals financial savings, borrowings and credit records. As there are no other humans are concerned on this form of commercial enterprise structure, elevating price range from banks might be very difficult. Raising fairness price range will not be possible – as this kind of business entity does no longer permit for profit sharing or shareholding.

Personal legal responsibility: If a proprietor is unable to pay commercial enterprise loans or taxes, in a proprietorship – the personal property of the business owner can be connected or laden. Hence, on this kind of enterprise structure – the proprietor could be held in my opinion accountable until all the liabilities are extinguished.

Business continuity: In case of loss of life or disability of the enterprise proprietor, the sole proprietorship will be automatically dissolved. Hence, there’s could be no commercial enterprise continuity.

Growth: A proprietorship has numerous restrictions in phrases of fundraising, liability and enterprise continuity. Hence, handiest very small corporations which can be inside the unorganized quarter function as proprietorship.

Unincorporated enterprise: Sole proprietorship are unincorporated companies. Hence, there is no centralized database to be had to peer if a sole proprietorship is active or inactive. Thus, sole proprietorship entities are ordinarily categorised as unorganized enterprise.

At Kanoons, we offer a seamless online registration process for proprietorships. All you need is the PAN & Aadhaar card of the business owner to get started. Our services can provide you with GST Registration, or UDYAM Registration, and a Zero-Balance Business Current Account in less than 3 days.

Compliances for Proprietorship

The following are some of the compliances that are applicable for a sole proprietorship:

ITR: For a sole proprietorship, it is important to ensure compliance with various regulations. One such compliance is Income Tax Filing, where the business owner must submit their personal income tax return using form ITR-3 or ITR-4. Additionally, declaring business income is essential, and only forms ITR-3 and ITR-4 allow for this. Therefore, all proprietorships must file form ITR-3 or ITR-4 to adhere to income tax regulations.

GST and TDS: In terms of GST return filing for proprietorships with GST registration, it is imperative to submit returns on a monthly and quarterly basis according to the registration scheme. Furthermore, for proprietorships with employees or exceeding certain purchase thresholds, tax deduction at source is mandatory, necessitating TDS returns to be filed every quarter. It is worth noting that additional compliance requirements may apply to proprietorships depending on their industry and location.




  • Registration
  • MSME/Udyog Aadhar
  • Account Opening*
  • GST Registration
  • 3M GST Return Filing



  • Registration
  • MSME/Udyog Aadhar
  • Account Opening*
  • GST Registration
  • 3M GST Return Filing



  • Registration
  • MSME/Udyog Aadhar
  • Account Opening*
  • GST Registration
  • 3M GST Return Filing

*Account Opening: We just assist you in opening Current Account in one of our partner’s bank.

No Late Fee

It has been observed that numerous small businesses incur significant penalties every year for late filing of various statutory returns to the Government. These penalties are non-tax-deductible and can adversely affect the profitability of these enterprises. At Kanoons, our primary objective is to offer cost-effective services to our clients and assist them in avoiding any late fees. In line with our commitment, we have developed cutting-edge technology that enables businesses to stay ahead of compliance requirements and prevent any penalties. Explore our range of compliance services below to ensure smooth and hassle-free operations.


Who is obligated to submit the DIR-3 KYC form?

It is mandatory for all Directors, whose DIN status is ‘Approved’ and who were assigned a DIN on or before the end of the fiscal year, to submit form DIR-3 KYC by September 30, the subsequent fiscal year.

Are a unique mobile phone number and email address required for the DIR-3 KYC form?

Yes. You must provide your personal mobile number and email address on the DIR-3 KYC form; these details will be validated through an OTP procedure. Additionally, the mobile number and email address must be distinct and not previously linked to another individual in the database of DIN holders.

Is it mandatory for a disqualified director to submit Form DIR-3 KYC?

Yes. Individuals whose DIN status is “approved” and to whom they have been assigned a DIN are obligated to submit form DIR-3 KYC. Disqualified directors are obligated to submit Form DIR-3 KYC as well.

What information is required on the DIR-3 KYC form?

The required information for Indian citizens is as follows: Name (as it appears in the PAN database), Father’s Name (as it appears in the PAN database), “Date of Birth (DoB)” (as it appears in the PAN database), PAN Number, Personal Mobile Number, Personal Email Address, and Permanent/Present Address.
A driver’s license, Aadhaar, or a valid voter identification card must be appended. An attachment is required for any of the aforementioned information.

Are multiple DIR-3 KYC filings permitted?

An applicant is not permitted to submit Form DIR-3 KYC multiple times. The system will indicate that the form has been lodged if the DIN is re-entered after KYC for that DIN has already been submitted.

Who is eligible to submit eForm DIR-3 KYC?

Any DIN bearer submitting their KYC information with MCA for the first time is required to do so via eForm DIR-3 KYC. Such an individual is unable to utilize the web service for his KYC. In addition, DIN holders who desire to modify their Know Your Customer (KYC) information are exclusively required to do so by submitting eForm DIR-3 KYC

What is the operation of the OTP feature in DIR-3 KYC?

The ‘Send OTP’ icon will simply become active once the form has undergone a successful pre-screening process. After completing Pre-scrutiny successfully, the user is required to select the ‘Send OTP’ button.

Who are the DIR-3 KYC form signatories?

For form DIR-3 KYC, the DIN holder and a professional (CA/CS/CMA) who certifies the form are the two signatories.
It is important to note that the PAN on the DSC is cross-verified with the PAN on the form for Indian citizens.
Regarding foreign nationals, the name that appears on both the form and the DSC must be identical. Form-attached DSCs are required to be duly registered on the MCA portal.

Can the DIR-3 KYC form be submitted in the absence of a DIN?

In order to obtain the status “Deactivated due to non-filing of DIR-3 KYC,” one may submit Form DIR-3 KYC.

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