Sole Proprietorship

🌟 Starting a Sole Proprietorship in India? Here's How.

If you’re planning to start a small business on your own—maybe as a freelancer, consultant, trader, or service provider—a sole proprietorship is the simplest and most affordable way to get going in India.

But here’s the thing: while you don’t need a government certificate saying “You are now a sole proprietor,” you do need a few registrations and steps to make your business legal, bank-ready, and tax-compliant.

Let’s walk you through it.

🧭 Step 1: Pick a Business Name

You’re free to choose any name—just make sure it’s not already trademarked. You don’t need to register the name unless you’re going for a brand trademark.

🛠️ Step 2: Get the Right Registrations

To operate legally and gain access to essential services like a bank account, these are the common registrations most sole proprietors go for:

GST Registration
Mandatory if your annual turnover exceeds ₹20 lakhs (services) or ₹40 lakhs (goods). Also needed if you sell across states or online.
Udyam (MSME) Registration
This gives your business official recognition as a Micro/Small business—helpful for loans, subsidies, and tenders.
Shop & Establishment License
Required by most state governments if you have a physical shop or office. It's issued by your local municipal authority.
Import Export Code (IEC)
Needed only if you plan to import or export products.

💼 Step 3: Open a Bank Account in Your Business Name

A current account separates your personal and business finances. To open one, banks usually ask for:

PAN & Aadhaar of the proprietor
GST or Udyam certificate (as proof of business)
Shop license or utility bill (address proof)
Passport-sized photo

📋 Documents You’ll Need

Aadhaar & PAN Card
Passport-size photo
Electricity or water bill (for address proof)
Rental agreement or ownership proof (if applicable)
Any one business registration (GST, Udyam, or Shop License)

💰 Tax & Compliance Made Simple

As a sole proprietor, your business income is considered your personal income. So, no separate tax filing for the business. Just file your personal ITR (usually ITR-3 or ITR-4). No annual ROC filings either—much less paperwork than a company

📌 Why People Love Sole Proprietorships

No complex registration
Low compliance burden
100% control over business decisions
Great for solo founders, consultants, and home-based businesses

Need Help Getting Started?

We can help you register everything from GST to Udyam, get your Shop License, and even set up your current account documentation—all in one place.

📩 Get a Free Consultation

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