Proprietorship

There is no procedure or facility provided by the Government of India for the registration of a Proprietorship. However, the existence of sole trader business is substantiated by one or more tax registrations, municipal registrations and obtaining the Udyog Adhaar and MSME registrations.

The brand name of a sole trader business can be used by anyone. To prevent others from using your Brand name, we encourage you to obtain the trademark registrations.

Followings are registration that are desirable for proprietorship business

• Shops And Establishment Registration: A municipal license required for conducting business in various states of India.

• MSME: MSME or Udyog Aadhaar registration can be obtained in the name of the business to establish that the Sole Proprietorship is registered under the Ministry of Micro, Small and Medium Enterprises.

• GST: GST registration must be obtained if the Proprietor is selling goods or services that cross the GST turnover threshold limit for registration or any other conditions mentioned in GST law.

• TAN: TAN Registration must be obtained for the Proprietor from the Income Tax department if the Proprietor is making any payments like salary etc, wherein TDS deduction is required.

• IE Code: Import Export Code or IE Code can be obtained from the DGFT in the name of the business - if Proprietorship business is exporting and/or importing goods into India.

• FSSAI: In case the Proprietorship is involved in the selling of food products or handling of food products, FSSAI registration must be obtained from the Food Safety and Standard Authority of India in the name of the Proprietor.

• Current account: A current account can be opened on the name of a business. Various banks have their own rules for this facility.