Proprietorship
The fastest way to formalise a solo business with minimal compliance overhead.
A sole proprietorship is the simplest business structure in India, ideal for individual entrepreneurs, home-based food operators, consultants, and small retailers who want to start quickly without the formalities of company incorporation. The business and the owner are legally the same person. Profits are taxed as personal income, and liability is unlimited. Complianceer helps proprietors obtain GST registration, Udyam MSME certificate, trade licence, shop & establishment registration, and FSSAI licence so you operate legally from a home kitchen, cloud kitchen, or small storefront.
At a glance
- Timeline: 3–10 working days
- Government fee: ₹0–₹5,000 (varies by state for trade licence and shop act)
- Professional fee: Starting from ₹1,999
Who needs this
- Solo founders running home-based or small-scale food businesses
- Freelance consultants and service providers
- Small retailers and kirana store owners
- Home bakers, tiffin services, and cloud kitchen operators
- Entrepreneurs testing a business idea before incorporating a company
Benefits
- Fastest and most affordable way to start a legal business in India
- Full control over business decisions without board or partner approvals
- Simple tax filing through individual ITR with business income schedule
- Easy to obtain GST, FSSAI, and local trade licences in proprietor name
- Can upgrade to private limited or LLP when business scales
Eligibility
- Must be a natural person (Indian citizen or resident), with no corporate proprietors allowed
- Only one proprietor per business; no partners allowed in this structure
- Business activity must comply with local zoning and licensing requirements
Documents
- PAN and Aadhaar of the proprietor
- Passport-size photograph
- Business address proof (rent agreement, utility bill, or property documents)
- Bank account in proprietor name (current account recommended above ₹20 lakh turnover)
- NOC from property owner if operating from rented premises
- Business name declaration (if using a trade name different from personal name)
FAQs
Can a proprietorship have employees?
Yes. Proprietorships can hire employees and must comply with labour laws, PF/ESI thresholds, and shop & establishment registration.
Is GST mandatory for proprietorship?
GST registration is mandatory if turnover exceeds ₹40 lakh (goods) or ₹20 lakh (services), or if you sell on e-commerce platforms or operate interstate.
Can I open a current account for my proprietorship?
Yes. Banks require PAN, address proof, and business registration proof (GST certificate, Udyam, or trade licence) to open a current account.