Quick answer
How do I get proprietorship registration in Delhi?
There is no single proprietorship registration. A Delhi proprietor proves the business through two or more registrations in the business name, usually GST (compulsory above the turnover threshold), Udyam (free and optional), and shop and establishment registration where it applies, then opens a current account using them. Income is taxed in the owner's own return.
- No MCA or ROC filing for a proprietorship
- GST threshold in Delhi: ₹40 lakh goods, ₹20 lakh services
- Udyam registration is free on the official portal
- Business income goes in the owner's own ITR
What is a sole proprietorship and who should choose it?
A sole proprietorship is a business owned and run by one person, with no legal separation between the owner and the business. It is the simplest and cheapest way to start trading in Delhi, and suits shopkeepers, freelancers, home businesses, tutors and small traders who want minimal paperwork.
The owner keeps all profit and also carries all risk: if the business cannot pay a supplier or a loan, the owner's personal savings and property are exposed. There are no partners to share decisions and no shares to sell to investors. For many Delhi businesses that is fine for years; a kirana store in Shalimar Bagh or a freelance designer in Pitampura rarely needs more.
When the business grows, takes on debt or wants investors, owners usually move to an OPC or a private limited company. Our company registration in Delhi page compares all six structures.
Is there an official proprietorship registration certificate?
No. Unlike a company, LLP or registered partnership, a proprietorship has no registrar and no incorporation certificate. Anyone offering a "proprietorship certificate" is really arranging other registrations, such as GST or Udyam, in your business name.
That is why banks ask for two proofs of business activity when you open a current account in a trade name. GST and Udyam certificates, a shop registration, or an import export code are the documents proprietors commonly use. Choose the registrations your business genuinely needs rather than collecting all of them.
Need help with sole proprietorship registration? Talk to a chartered accountant in Delhi today. First call is free.
Which registrations does a sole proprietorship in Delhi need?
Most Delhi proprietors need a PAN in their own name, a current account, and GST once turnover crosses the threshold. Udyam is free and useful for MSME benefits. Shop and establishment registration, FSSAI, IEC and trademark depend on what you sell and where.
| Registration | When you need it | Government fee |
|---|---|---|
| PAN (owner's own) | Always; the business uses the owner's PAN | Standard PAN fee |
| GST registration | Turnover above ₹40 lakh (goods) or ₹20 lakh (services) in Delhi, or compulsory categories | No government fee reported |
| Udyam (MSME) | Optional; useful for bank loans and MSME schemes | Free on the official portal |
| Shop and establishment | Shops, offices and commercial establishments covered by Delhi rules | As per current Delhi rules |
| Import export code | Importing or exporting goods or services | ₹500 one time |
| FSSAI licence or registration | Any food business | Depends on the category |
| Trademark | To protect a brand name or logo | ₹4,500 per class for individuals (e-filing) |
Sources: CBIC GST update; Udyam portal; IP India fee table, checked October 2026. The services threshold is reported by secondary sources.
How to set up a proprietorship in Delhi: step by step
Setting up a Delhi proprietorship takes four or five steps and can be done in about a week if your documents are ready. Start with the registration your bank and customers will ask for first, which is usually GST for traders and Udyam for small service providers.
- 1
Choose a trade name and address
Pick a name that does not copy an existing brand, and fix the business address you will use for every registration.
- 2
Apply for GST if needed
Apply on the GST portal with PAN, Aadhaar, photo, address proof and bank details. Low-risk applicants are reported to get approval within 3 working days after Aadhaar authentication from 1 November 2025.
- 3
Register on Udyam
Use the official Udyam portal with Aadhaar and PAN. It is free; do not pay sites that look like the registrar.
- 4
Get shop and establishment registration where it applies
If you run a shop or office covered by the Delhi shops and establishments law, complete that registration; our shop registration page explains the current method.
- 5
Open a current account
Give the bank two business proofs, such as GST and Udyam certificates, along with your KYC.
What documents does a proprietor need?
A proprietor uses personal KYC, PAN and Aadhaar, plus proof of the business premises. If the shop or office is rented, a rent agreement and one ownership document of the landlord are enough for GST, per CBIC Instruction 03/2025, which tells officers not to ask for the lessor's PAN, Aadhaar or photo.
| Document | Used for |
|---|---|
| PAN of the owner | GST, Udyam, bank, income tax |
| Aadhaar of the owner | GST authentication, Udyam |
| Photograph (JPEG, up to 100 KB for GST) | GST application |
| Electricity bill, property tax receipt or rent agreement | Address proof for GST and shop registration |
| Owner's consent or NOC if premises are rented or family-owned | GST and bank |
| Cancelled cheque or bank statement (up to 500 KB for GST) | GST bank details |
File size rules: CBIC registration FAQ. Rented premises: CBIC Instruction 03/2025.
How is a proprietorship taxed and what are the yearly filings?
A proprietorship pays income tax as part of the owner's personal return: business profit is added to other income and taxed at the owner's slab rates. There are no ROC filings. If GST registered, the proprietor also files GST returns monthly or quarterly.
- Income tax: business income is usually reported in ITR-3 or ITR-4. For FY 2025-26 (AY 2026-27), the due date for non-audit ITR-3 and ITR-4 is reported as 31 August 2026. See ITR filing.
- GST: under the quarterly QRMP scheme, Delhi taxpayers file GSTR-3B by the 24th of the month after the quarter (GST portal FAQ). See GST return filing.
- Books: keep sales, purchase and bank records; a tax audit applies only above the income tax limits.
When should a proprietor move to an LLP or company?
Move when risk, scale or funding needs outgrow personal ownership: large borrowings, big contracts, hiring many staff, or an investor who wants equity. An LLP suits two or more owners who want limited liability; a private limited company suits businesses planning to raise funds.
Moving is not a conversion of the same legal person. A new entity is formed and takes over the business, so GST, bank accounts, Udyam and licences are applied for again in the new name. Plan the switch at the start of a financial year to keep accounts clean. See LLP registration for the partnership route.
Who helps with proprietorship registrations on CA in Delhi?
Khubchandani & Co. Chartered Accountants and Moneymji both list proprietorship set-up, GST registration and ongoing returns, so a proprietor can get registration, books and tax filing from one firm. You get a fixed quote before work starts.
Khubchandani & Co. also handles TDS, advance tax, trademark and FSSAI, which suits food businesses and traders. Moneymji offers registration with monthly compliance packages. Compare both on our chartered accountant firms in Delhi page. Proprietors from Model Town and nearby areas can read CA in Model Town.
Frequently asked questions
Can I start a proprietorship without any registration?
Yes, you can start trading under your own name without registering anything special, as long as you are below the GST threshold and outside licensed activities such as food. In practice you will need some registration to open a current account and to issue invoices that clients accept.
Is GST registration mandatory for a proprietor in Delhi?
Only once aggregate turnover crosses ₹40 lakh for goods or ₹20 lakh for services, or if your business falls in a category that must register regardless. Many proprietors register earlier because B2B buyers want GST invoices to claim input tax credit.
Is Udyam registration free?
Yes. The official portal says the registration process is totally free. Ignore websites that charge a fee while looking like the government site. A professional may charge for helping you, but the government charges nothing.
Can a salaried person run a proprietorship on the side?
Tax law allows it; the business income is simply added to your return alongside salary, often making ITR-3 the right form. Check your employment contract for any restriction on outside work before you register a trade name.
What is the difference between proprietorship and one person company?
An OPC is a company with one owner, so it is a separate legal entity with limited liability and annual ROC filings. A proprietorship is the owner personally, with unlimited liability and no ROC filings. The OPC costs more to run each year.
Can a proprietor hire employees?
Yes. A proprietor can employ staff and must follow labour rules that apply to the establishment, such as shop and establishment registration and, once staff numbers cross the limits, PF and ESI registration. Payroll TDS applies where salaries exceed the exempt limit.
Can I have more than one proprietorship?
One person can run several businesses as proprietor under different trade names, but they all share the owner's PAN and are taxed together in one return. For GST, a separate registration is needed in each state where you have a place of business.
Should a proprietor get an import export code?
Only if you import or export. The IEC is a 10-digit code linked to your PAN, with a one-time government fee of ₹500. It must be updated every year between 1 April and 30 June, even if nothing changed, or it is deactivated. Our IEC registration page covers the steps.
Can a proprietor apply for a trademark in the business name?
Yes. The proprietor files in their own name as the owner of the brand. As an individual, the official e-filing fee is ₹4,500 per class, against ₹9,000 for other applicants. Filing early protects a shop or product name before a competitor in another market adopts it.
Which bank documents do I need for a proprietorship current account?
Banks commonly ask for two proofs that the business exists in its trade name, such as GST and Udyam certificates or a shop registration, plus your PAN, Aadhaar and address proof. Requirements vary by bank, so check the list with your branch first.