The government of India has not prescribed any mechanism for registering sole proprietorship firms. Thus, the registration of a proprietorship can only be recognized through tax registrations that the Business must have as per the rules and regulations. These tax registrations may include GST Registration that must be obtained in the Proprietor’s name to establish that the Proprietor is operating a business as a sole proprietorship.

•  A proprietorship firm is started by a resident of India
•  Choose a business name
•  Set a business location to start the business
•  No capital amount required
•  Only a minimum investment is needed
•  NRI cannot start a Proprietorship firm

•  Single Ownership –Only one person will be the owner of the business. No other person will be involved as an owner.
•  Easy of Formation –The formation of Business is very easy as it requires very few documents.
•  Investment of Low Capital – Only the owner can invest capital.
•  Self Management –Each and every task will be conducted by the owner.
•  Personal Risk –The whole risk of the entity is liable by the owner.
•  Profit & Loss – Full amount of profit or loss will be entitled by the owner.
•  No Separate Entity –Owner is not separate from the business activities.
•  Uncertain stability –The stability of the Proprietorship is not certain because any time the business might wind up for the reasons of loss or death of the owner.
•  Lack of Legal formalities –A Sole proprietorship does not have a separate law to govern it.
•  PAN of the Proprietor and Proprietorship are one and the same.
•  A Proprietorship cannot raise equity funds from Angel Investors, Venture capital and private equity funds.
•  In case of Loans from the Banks the Proprietor needs to pledge his own property.
•  Banks do have a restriction on the amount of money that they can lend to Sole Proprietorship business.

The documents required for registering a proprietorship firm entail the attachments you need to get registrations to give your business identity.

Thus, you will need two things:

1. Documents required for opening a bank account for your Sole Proprietorship
2. Documents required for GST registration for Sole Proprietorship
3. Documents required to obtain a PAN card.
4. Documents required for Shops and Establishment Registration

• Proof of name: Provide evidence of the name of your Proprietorship firm.
• Proof of Address: Provide details of the address details of the proprietorship firm
• Activity of concern: Provide the details about your business objective. You can either use an existing invoice or a detailed write-up.
• Provide other business registrations: Send the banks a copy of the registration certificates about your Business.
• ITR return: Copy of last year’s income tax return
• Utility bills: Provide a copy of the utility bills to reinforce your address proof.

• Your PAN card
• Your AADHAR Card
• Your Photo Graph
• Your proof of Address
• Your Bank Account Details

• Your AADHAR card
• Your photograph
• Sample of your signature

• AADHAR Card
• VOTER ID Card
• PAN Card
• Your Photograph
• Details of your Business
• Architectural Blueprint of Your Business