Sole Proprietorship Registration Process in India

Introduction to Sole Proprietorship

A sole proprietorship is a type of business entity that is owned and operated by a single individual. It is the simplest and most common form of business structure in India.

1) Choosing a Name

The first step in registering a sole proprietorship is choosing a unique name for the business. The name should not be similar to any existing businesses and should comply with the naming guidelines issued by the Ministry of Corporate Affairs.

2) Obtaining PAN Card

The proprietor must obtain a Permanent Account Number (PAN) card from the Income Tax Department. The PAN card is required to open a bank account, file tax returns and conduct other financial transactions.

3) Opening a Bank Account

The proprietor must open a separate bank account for the business. This account should be used for all financial transactions related to the business.

4) Obtaining GST Registration

If the annual turnover of the business is more than Rs. 20 lakhs, the proprietor must obtain Goods and Services Tax (GST) registration. This registration is mandatory for businesses that engage in the supply of goods or services.

5) Registering for Shop and Establishment Act

The proprietor must register the business under the Shop and Establishment Act of the respective state. This registration is mandatory for all businesses that have employees.

6) Obtaining Licenses and Permits

Depending on the nature of the business, the proprietor may need to obtain licenses and permits from various government departments. For example, if the business involves food products, the proprietor must obtain a food license from the Food Safety and Standards Authority of India.


Sole proprietorship registration in India involves several steps and compliances. Contact Kanakkupillai for hassle free registration.