Sole Proprietorship Registration in India
The fastest way to start — register in days, not weeks.
Best for
- ✓First-time entrepreneurs testing a business idea
- ✓Freelancers, traders, and home-based businesses
- ✓Businesses with low risk and no employee hiring plans
Available for Indian residents only
Includes Udyam (MSME) registration. Available only for Indian residents.
Get started →View all pricing →Requirements
- Single owner only
- Cannot be run by more than one person
No minimum capital requirement
Unlimited — owner's personal assets are at risk for all business liabilities
- No formal registration with MCA
- Identity is established through Udyam (MSME) and/or GST registration
Registration process
| Step | Action | Timeline |
|---|---|---|
01 | Udyam (MSME) Registration Register on the Udyam portal (udyamregistration.gov.in) using Aadhaar. This gives the business its official MSME identity and access to government schemes. | 1–2 days |
02 | PAN (individual) is the business PAN The proprietor's personal PAN is used for all business tax filings. No separate company PAN is issued. | Instant |
03 | Bank account in business name Open a current account in the business name using the Udyam certificate + owner PAN + Aadhaar. Nexub provides introductions to partner banks. | 2–3 days |
Document checklist
Prepare these before starting — Nexub will guide you through each one.
Owner Documents
- ☐PAN card of the proprietor
- ☐Aadhaar card (mandatory for Udyam registration)
- ☐Recent passport-sized photograph
- ☐Bank account details
Business Documents
- ☐Business address proof (electricity bill or rent agreement)
- ☐GST registration certificate (if turnover exceeds ₹20 Lakh)
What Nexub delivers
Everything included in your formation fee — no hidden extras.
Optional add-ons
Add at formation time or anytime after incorporation.
MSME / Udyam Registration
₹1,500Udyam portal registration for access to government MSME schemes, priority lending, and subsidies.
Add thisGST Registration
₹5,000GST registration on the GSTN portal, including GSTIN issuance and business verification.
Add thisIE Code (Import Export)
₹3,500Import Export Code from DGFT — mandatory for any business involved in international trade.
Add thisAnnual compliance obligations
After formation, these filings keep your company in good standing.
| Filing | Frequency | Penalty for delay |
|---|---|---|
| Income Tax Return (ITR-3 or ITR-4 under presumptive taxation) | Annual | — |
| GSTR-1 + GSTR-3B (if GST registered) | Monthly/Quarterly | — |
| TDS Returns (if employees or payments above threshold) | Quarterly | — |
| Tax Audit (if turnover > ₹1 Crore; ₹2 Crore under 44AD) | Annual | — |
Proprietorship registration — common questions
Everything founders ask before registering a Sole Proprietorship in India.
A proprietorship has no separate legal identity and offers unlimited personal liability. An OPC is a formal company with limited liability, separate legal existence, and more compliance requirements. OPC formation starts at ₹25,000 vs ₹1,500 for a proprietorship.
Yes. A proprietorship can hire employees and must comply with applicable labour laws including PF, ESI, and TDS, once the employee count crosses the relevant thresholds.
GST registration is mandatory if annual turnover exceeds ₹20 Lakh (₹10 Lakh for specified states). If you supply goods or services interstate, registration is mandatory regardless of turnover.
Yes. Conversion to a Private Limited Company is possible by transferring all assets and liabilities. Tax benefits such as capital gains exemptions may apply. Nexub's experts can guide you through this.
For very small businesses, yes. As you grow — or if you need to open a current bank account, take government contracts, or export — you may also need GST registration and/or FSSAI, trade licence, or shop establishment registration depending on your business type.
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