Sole Proprietorship
A proprietorship is not a separate incorporated legal person. Registration requirements depend on the activity, location and applicable tax, labour, municipal and sector-specific laws.
A practical guide to choosing and registering a business or non-profit entity, obtaining key statutory registrations, and using the relevant government portals for compliance in India.
This page covers sole proprietorships, partnership firms, LLPs, One Person Companies, private and public companies, Indian subsidiaries, Nidhi companies, Section 8 companies, societies, trusts, Udyam MSME registration, EPF, ESIC, FSSAI, IEC, RERA, FCRA, income-tax registrations and intellectual property protection.
Legal and portal information reviewed: 4 September 2026.
A proprietorship is not a separate incorporated legal person. Registration requirements depend on the activity, location and applicable tax, labour, municipal and sector-specific laws.
Partnerships are governed principally by the Indian Partnership Act, 1932, with registration, stamp and procedural requirements also depending on the State or Union Territory.
LLPs are governed by the Limited Liability Partnership Act, 2008 and LLP Rules. Incorporation is carried out through the Ministry of Corporate Affairs system, including the FiLLiP webform.
Companies, including One Person Companies and Section 8 companies, are governed by the Companies Act, 2013 and applicable incorporation rules. MCA's SPICe+ system is used for incorporation.
Societies and public charitable trusts are subject to the relevant central or State law. The Indian Trusts Act, 1882 primarily concerns private trusts; public charitable trusts may be governed by State-specific legislation and principles.
A company formed for charitable or other permitted non-profit objects can seek a licence under Section 8 of the Companies Act, 2013. For a new Section 8 company, the licence is integrated with the incorporation process.
Incorporating a company, LLP, partnership or other entity does not by itself amount to DPIIT Startup Recognition. Eligible entities must separately apply under the Startup India framework. Under the DPIIT notification dated 4 February 2026, the general turnover ceiling for Startup Recognition was revised to ₹200 crore. The Startup India portal also provides the current eligibility conditions, recognition process and available benefits.
| Registration | Key legal / compliance basis | Practical point |
|---|---|---|
| Udyam (MSME) | MSMED Act, 2006 and current Central Government notifications | From 1 April 2025, the notified investment/turnover ceilings are: Micro ₹2.5 crore/₹10 crore; Small ₹25 crore/₹100 crore; Medium ₹125 crore/₹500 crore. |
| EPF | Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and schemes | Employer coverage depends on the Act, notifications and the nature/size of the establishment. Use the EPFO employer portal for current registration and filing services. |
| ESIC | Employees' State Insurance Act, 1948 and applicable notifications | Coverage thresholds and notified establishments can vary by category and jurisdiction; confirm applicability before registration. |
| FSSAI | Food Safety and Standards Act, 2006 and licensing/registration regulations | Food businesses must obtain the registration or licence applicable to their activity and scale through FoSCoS. Current 2026 eligibility and turnover rules should be checked on FoSCoS. |
| IEC | Foreign Trade (Development and Regulation) Act, 1992; Foreign Trade Policy and procedures | IEC is generally required for import/export unless exempt. DGFT provides the online IEC module and requires prescribed updating/confirmation of IEC details. |
| RERA | Real Estate (Regulation and Development) Act, 2016 and State/UT rules | Project and real-estate-agent registration is handled by the relevant State/UT RERA authority where applicable. |
| FCRA | Foreign Contribution (Regulation) Act, 2010, 2020 amendment and current rules/notifications | Eligible associations receiving foreign contribution may need prior permission or registration and must comply with the current FCRA banking, filing and utilisation requirements. |
| 12AB / 80G | Income-tax Act, 1961 and Income-tax Rules | Eligible charitable or religious entities may apply for registration/approval through the Income Tax e-Filing portal in the prescribed form. |
| Trademark / Patent / Copyright | Trade Marks Act, 1999; Patents Act, 1970; Copyright Act, 1957 | Use the official IP India e-services for trade marks, patents and related intellectual-property filings; copyright e-filing is also linked through IP India. |
Compare liability, ownership, fundraising, tax, governance, audit and annual filing requirements before choosing a structure.
Use the competent authority for the chosen structure, such as MCA for companies and LLPs or the relevant State authority for firms, societies and trusts.
Obtain PAN/TAN and GST registration where applicable, and complete income-tax registrations or approvals relevant to non-profit entities.
Check EPF, ESIC, Shops and Establishments, professional tax and other employment-law registrations based on the establishment and State.
Depending on the activity, consider FSSAI, IEC, RERA, trade licence, pollution-control consent, legal metrology or other regulatory approvals.
Search and protect the business name, brand, inventions, designs and other intellectual property where commercially relevant.