Starting a sole proprietorship
A practical sequence for establishing a business operated by one individual.
A proprietorship is owned by one individual and has no separate incorporation under a single central proprietorship law. Its commercial existence is normally evidenced through registrations or licences relevant to the activity and location. The proprietor and business are not separate for liability purposes. Avoid websites claiming to issue an official universal proprietorship incorporation certificate.
Eligibility
One individual owns and controls the concern. Activity-specific, local, tax and employment rules determine additional registrations.
Potential benefits
Simple ownership and decision-making with comparatively light formation formalities, but unlimited personal liability and limited equity-fundraising options.
How to apply
Choose a business name and location. Obtain PAN and KYC in the proprietor name, then complete applicable Shops and Establishments, trade, professional, GST or sector registrations. Eligible MSMEs may use the free official Udyam portal. Build business-activity proof and open a current account in the concern name under bank KYC policy.