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Registration of Proprietorship

There is no mechanism provided by the Government of India for the registration of a Proprietorship. There is also no State or Central Government Authority governing the registration or operations of Proprietorships in India. Therefore, the existence of a proprietorship can be established through one or more tax registrations and business license. For instance, MSME and GST Registration can be obtained in the name of the Proprietor to establish that the Proprietor is operating a business as a Sole Proprietorship.

As there is no procedure for registering the name of a Sole Proprietorship business, any other person can also use the same name for their business. However, in case a Proprietor wishes to protect the business name and the name is unique, a trademark registration can be obtained for the business name.

Common Registrations for Proprietorship

As the identity of a Sole Proprietorship is established through various other registrations and licenses, the following are some of the common registrations that are obtained for a Proprietorship.

MSME Registration: 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.

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

GST Registration: GST registration must be obtained if the Proprietor is selling goods or services that cross the GST turnover threshold limit for registration. In most states, GST registration is required for service providers having annual revenue of more than Rs.20 lakhs and in case of traders – annual revenue of more than Rs.40 lakhs.

Import Export Code: Import Export Code or IE Code can be obtained from the DGFT in the name of the business – in case of a Proprietorship business undertaking export and/or import of goods into India.

FSSAI Registration: 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.

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