A proprietorship has no separate registration of its own. It is the individual doing business under a trade name, and the business is identified through the registrations it takes.
Most proprietors open a current account in the business name. Banks usually ask for two proofs of the business, such as GST registration, Udyam registration, a Shop and Establishment certificate or intimation, or a professional tax enrolment. The proprietor’s PAN is used for income tax, and business income is shown in the proprietor’s own return.
Key points
- Quickest and cheapest structure to start
- No separate legal entity: the owner’s liability is unlimited
- Income taxed at individual slab rates in ITR-3 or ITR-4
- Registrations: GST if required, Udyam, Shop and Establishment, PTEC
- Cannot bring in partners or investors without changing structure
General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.
