Sole Proprietorship Registration

Formalise your individual business with GST, Udyam, and trade licence

Validity: Depends on registrations: GST requires annual return; Udyam is lifetime; Shop & Establishment requires annual renewal in most statesHandled by verified compliance experts. 100% online process.

The questions founders ask most about sole proprietorship registration, answered plainly. If something here doesn't cover your situation, our team will walk you through it before you commit.

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Frequently Asked Questions

Do I need to register a sole proprietorship with MCA?

No. Sole proprietorships are not registered with MCA (unlike companies and LLPs). You formalise through GST, Udyam, or a trade licence — and file income tax as an individual.

Can I open a current account for a sole proprietorship?

Yes. Banks require at least 2 of the following as proof of business: GST registration, trade licence, IEC (for exporters), FSSAI (for food businesses), or Udyam certificate.

What is the tax rate for a sole proprietorship?

A sole proprietor pays income tax as an individual — standard slab rates apply (0–30%). Business income is declared under 'Profits and Gains of Business or Profession' in ITR-3 or ITR-4.

Can a sole proprietorship be converted to a Pvt Ltd later?

Not directly via a formal conversion route. The common approach is to incorporate a new Pvt Ltd and transfer the business as a going concern via a business transfer agreement.