Why Proprietorship?

The fastest and cheapest way to legitimise your business and open a current bank account.

01

Easiest to Start

No minimum capital, no MOA/AOA, no ROC filing. Just GST or MSME registration and you're a legal business.

02

Full Control

You are the business. All decisions, all profits — no board meetings, no shareholders to answer to.

03

Open a Current Account

Banks require business proof to open a current account. GST/MSME certificate gives you exactly that.

04

Minimal Compliance

No annual ROC filings. Just ITR once a year and GST returns if registered. Very low compliance burden.

Legal Framework

There is no single central act for proprietorships. Legitimacy comes from obtaining business registrations.

MSMED Act 2006 / Udyam Registration (2020): Government of India's official MSME certificate — widely accepted as business proof for bank accounts and government tenders.

CGST Act 2017, Section 22: Mandatory GST registration if turnover exceeds ₹40 lakh (goods) or ₹20 lakh (services). GST certificate also serves as primary business identity proof.

Telangana Shops & Establishments Act: Shop Act license required for commercial premises in Telangana. Optional for home-based businesses.

Registration Process

We get you GST + MSME certificate + guidance on bank account opening.

1

Choose Business Name

Pick a trade name. No name availability check needed (unlike Pvt Ltd). You can use your own name or any brand name.

2

MSME / Udyam Registration

Free government registration at udyamregistration.gov.in. Aadhaar OTP-based. Certificate in same day.

3

GST Registration (if applicable)

Mandatory above threshold. Also taken voluntarily for ITC benefits and B2B credibility.

4

Open Current Bank Account

With MSME + GST certificate + PAN + Aadhaar, most banks open a business current account within 2–3 days.

Documents Required

PAN card of proprietor
Aadhaar card of proprietor
Passport-size photograph
Active mobile number linked to Aadhaar
Business address proof (utility bill or rent agreement)
Trade name / business name
Business activity description
Bank account details (for GST)

Timeline

Total time: 1–3 working days depending on documents.

Day 1

Document Collection

Day 1

Udyam Certificate

Day 2–3

GST Registration

Day 3+

Bank Account

Benefits & Risks

Benefits of Registering

Legal business identity — open current account
MSME benefits: priority lending, govt schemes
Issue GST invoices and claim ITC
Participate in government tenders (MSME quota)
Build a trackable business credit history

Risks of Not Registering

Forced to use personal savings account for business
Cannot issue GST invoices — lose B2B clients
No MSME loan benefits or government schemes
Informal payments — UPI/cash — limit growth
Income tax scrutiny for unexplained deposits

Sole Proprietorship Registration