Starting Sole Proprietorship Business in India

How we can help you? We provide the complete package which includes the following.

  • GST Registration Certificate

    We will obtain the GST Registration Certificate for the properitor and help in complying with the GST law for smooth conduct of business.

  • MSME Certificate

    MSME Certificate or Udyog Aadhar Certificate is required for small scale enterprises to avail concessional loans and it allows protection against payments.

  • Income Tax filing

    We will file the Income tax Return for the business. ITR-3 & ITR-4 for individuals can be filed online.

Start your Sole Proprietor Business at Rs. 2999 only all over India.

Akash Arora

At Gstmentor, an expert would be assigned to you who will resolve all your queries and help you to commence your business. It has been our motto to support small-scale businesses in India.

Akash Arora


Sole Proprietorship Registration in India

What is a Sole Proprietorship?

When an individual makes a choice to start his own business, to be his own boss, a sole proprietorship emerges. The sole proprietor is an economic hero as he uses his own funds, applies his own creativity, and produces goods and services on his own. The business in case of a sole proprietorship is undertaken on a smaller scale initially but can expand without limits. This form of business organization is much appreciated in the entrepreneurship literature. The compliances on a sole entrepreneur are limited to GST and Income Tax. Also, he can register in MSME to obtain loans at concessional rates in India.

How Gstmentor Helps Proprietors to Start Sole Proprietor Business?

“Gstmentor – Your Business Partner” has helped a lot of proprietors to start their entrepreneurship journey online. The complete procedure can be performed and all the tasks in these processes can be performed online like Obtaining GST Registration, filing GST Returns, Filing Income Tax Returns, Accounting & Book Keeping and MSME Certificate.

Step 1: Once we receive the request of incorporating a Proprietorship, our team contacts the entrepreneur, discusses with him the compliance and documents required. Briefs him about the nature of business and compliances involved.

Step 2: The second step is obtaining documents from the entrepreneur and drafting the required ones.

Step 3: The third step is filing all the applications forms like GST Registration Application, MSME Application, and an Income tax return which is filed annually.

All these processes are completed within 5 to 7 days and the Proprietorship business is ready to go.

Benefits of Starting Sole Proprietorship

The benefits of starting a sole proprietorship are listed below.

Be your Own Boss: A sole entrepreneur enjoys autonomy as he is the only planner, controller, and supervisor of his own business. This autonomy is not prevalent in Companies where there are large stakeholders associated. The information about his business is kept private and not disclosed to the Public or any regulatory authorities. Thus, there is complete control over the business.

Easy Setup & Compliance: Proprietorship is easiest to set up as the PAN of the owner and Proprietory Firm is the same. GST Registration is obtained on the same PAN number and Income Tax returns are also filed on the same. Therefore, there is negligible compliance cost.

Minimal Investment: A sole proprietor requires minimal investment to start his own business. The only investment he would require will depend on the scale of business activities involved initially.

Easy Liquidation and Winding Up: In case a proprietor wants to cease his business due to any reason he can surrender the GST certificate obtained and nothing else is required. Unline companies, which have a long procedure of winding up.

Documents required for Starting Sole Proprietorship business in India

The documents to start a sole proprietor business in India in most cases are listed below.

  • PAN (Permanent Account Number) of Proprietor
  • Aadhar Card
  • Address Proof of Proprietor
  • Passport Size Photo

These are the only documents required to start a sole proprietorship business in India.

Licenses and Certificates Required to Start Sole Proprietor Business

GST Registration Certificate: Most of the businesses in India require GST Registration now. GST Registration can be obtained voluntarily even if the threshold limit has not been crossed. It is due to a GSTIN, an individual is able to claim an Input Tax Credit on goods purchased and levy GST on sales. Small businesses can opt for the Composition scheme as there are low tax rates. Obtaining GST Registration is mandatory in case of threshold limit has crossed which is Rs. 40 lacs for goods.

The only compliance involved in GST is the filing of GST Returns( GSTR-1 and GSTR-3B) in most cases.

Udyog Aadhar Registration (MSME Registration)

The Government of India to support MSMEs (Micro, Small, and Medium Enterprises) in India and for ease of business granted Udyog Aadhar Registration Or Udyam Registration on the basis of turnover and investment. This registration has several benefits which are listed below.

  • Udyam Certificate helps in priority sector lending from banks. (Loans at concessional rate of interest)
  • The Registration in Udyam helps in MSME’s schemes of the government like Credit Guarantee Scheme, Public Procurement Policy, Protection against delayed payments.
  • Promoting the small-scale sector in India and minimizing the problems of unemployment.

Shops and Establishment Registration

The Shops and Establishment Act regulates shops, commercial establishments, hotels, clubs, restaurants, eating houses, and other places of public amusement or entertainment. Shops and Establishment registration is covered under the state laws of India.

Every state has its different set of laws for Shops and establishments and they are to be followed properly.

TAN Application

Tax Deduction and Collection Account Number better known as TAN is a 10-digit alphanumeric number.TAN is required by all individuals because without it Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) returns are not accepted by TIN facilitation centers.

All those who are required to deduct or collect tax at source on behalf of the Income Tax department need to apply and obtain the 10-digit alphanumeric TAN.


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