How to do Business registration(Proprietorship) – How to apply, Documents


Business registration – Proprietary

A proprietary firm or a sole proprietorship is a single man firm, where in the owner and the business is the same.  It is most commonly found and the easiest to operate. A sole proprietorship isn’t a sperate legal entity and is not a legal person, so the onus of the liability is on the owner. So its safe to say that the owner or the proprietor has unlimited liability, which extends beyond his investment.


A sole proprietorship earning less that 2 lakh rupees needn’t pay any tax, any amount above 2 lakhs is taxable by the government, this is very similar to how individual taxing works. To get it registered, the first things that needs to be done is that a bank account must be opened in the name of the business.


Once the bank account is set up, the organization can start working. There is no additional paperwork required. According to what business the proprietor is doing he can apply for a MSME or GST registration. There is no registration certificate like other forms of business, the bank account or other registrations for the sole proprietorship like GST serve as proofs of the sole proprietorship.




No separation between the management and ownership : A sole proprietorship is the most popular and even the most common business organization, especially for small businesses. It is owned, managed and controlled by the same person, so there is no separation between the management and ownership.


Sole Recipient of Profits: Since the ownership is singular, the profits go to the owner.


Easy Formation and Closure: Since there is virtually no paperwork and only one person is involved the formation and closure of a sole proprietorship is easy and has basically no procedure.


Absolute Control: The sole proprietor is the only person who has control and can carry out his plans without any interference from anybody and he is not answerable to anyone else.


Direct Incentive:Since the sole proprietorship is the only one reaping the benefits he has more incentive to work for the business as he takes home the profits.




Unlimited Liability : The organization and the person are one in the same and he hold the most liability.


Lack of continuity : Since the sole proprietorship is the only person in charge there will be no continuity after him or her.


Documents Required


  • Copy of the PAN Card of the proprietor or owner
  • Electricity/ Water bill of the Business Place
  • Copy of Aadhaar Card or Voter identity card


Procedure for Registration


  • Open a bank Account for the business
  • Organization can start working, there is no other paper work.



Just need to hold a bank account, no other registration is required.

As the name suggests one owner is sufficient. A sole Proprietorship is only for single owner businesses.

It is the choice of the proprietor.

Yes, but that requires a different process which is governed by statutes.

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