How to register a Proprietorship: Udyam, GST and Shop & Establishment

To register a proprietorship in India you do not file one application; you take the separate Registrations your business needs. For most proprietors that means Udyam Registration (free), GST Registration when turnover or activity requires it, and a Shop and Establishment Registration or intimation under your state's law.

This chapter walks through each one, in the order most first-time founders take them.

What Registrations does a proprietorship need?

Registration	Who needs it	Where	Government fee
Udyam Registration (MSME)	Optional, but useful for almost every business	udyamregistration.gov.in	Free
GST Registration	Above the turnover limit, or in specified cases from day one	gst.gov.in	Free
Shop and Establishment	Shops, offices and commercial establishments, as per state law	State labour department portal	Varies by state
Professional tax enrolment	In states that levy it (e.g. Maharashtra)	State tax department	Up to ₹2,500 a year (constitutional cap)
Sector licences	Food (FSSAI), import-export (IEC), trade licence etc.	Relevant authority	Varies

Step 1: Udyam Registration

Udyam Registration is the government's online Registration for micro, small and medium enterprises (MSMEs). It is free, paperless and based on self-declaration.

1. Go to the official Udyam Registration portal. Be careful: several private sites look similar and charge a fee.
2. Enter the proprietor's Aadhaar number and verify it with the OTP sent to the linked mobile.
3. Enter the proprietor's PAN. The portal pulls investment and turnover data from Income-tax and GST records where available.
4. Fill in the business name, address, bank details, main activity (with the NIC code) and number of employees.
5. Submit. The Udyam Registration Certificate is issued online.

The certificate has no expiry. It helps with bank loans, government schemes, protection against delayed payments under the MSMED Act, and, under RBI's KYC rules, it is one of the documents a bank can accept as proof of a proprietorship's business.

Step 2: GST Registration

When is GST Registration compulsory?

• When aggregate turnover in a financial year crosses ₹40 lakh for suppliers of goods in most states, or ₹20 lakh for suppliers of services. Lower limits (₹20 lakh or ₹10 lakh) apply in certain special category states.
• From day one, whatever the turnover, in specified cases — for example, inter-state taxable supplies of goods, and many sellers on e-commerce platforms (some relaxations exist for small sellers; check the current CBIC notifications).

You may also register voluntarily, for instance to claim input tax credit or because your business customers want a GST invoice.

How to apply

1. On the GST portal, fill Part A of Form GST REG-01 with the proprietor's PAN, mobile and email, and verify by OTP.
2. Complete Part B: trade name, principal place of business, goods or services, bank account and authorised signatory (the proprietor).
3. Upload the proprietor's photograph, proof of the place of business and bank details.
4. Opt for Aadhaar authentication. Without it, or where the system flags risk, physical verification may be required.
5. Track the application with the ARN (Application Reference Number). On approval you get your GSTIN and certificate (Form GST REG-06).

A proprietor's GSTIN is built on the proprietor's personal PAN — you cannot get a separate PAN for the proprietorship. Since 1 November 2025, applicants who opt for the simplified scheme under Rule 14A (output tax on supplies to registered persons of up to ₹2.5 lakh a month) can get Registration electronically within three working days, subject to Aadhaar authentication.

Step 3: Shop and Establishment Registration

Every state has its own shops and establishments law covering working hours, holidays and employee conditions. The rules, forms and fees differ by state, so always check your state labour department's site.

Example: Maharashtra (the "Gumasta" licence)

Under the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017:

• Establishments with ten or more workers must apply for Registration online within 60 days of starting and receive a Registration certificate.
• Establishments with fewer than ten workers do not register; instead they give an online intimation of commencing business and receive an acknowledgement.
• Applications are made through the Maharashtra Labour Department online services. The fee depends on the number of workers.

Many people still call either document the "Gumasta licence", a name carried over from the older 1948 Act.

Other licences you may need

• FSSAI Registration or licence for any food business.
• Import Export Code (IEC) from DGFT if you import or export.
• Municipal trade licence for certain trades in some cities.
• Professional tax enrolment in states that levy it.

In what order should you do it?

1. Decide the trade name and place of business.
2. Take Udyam Registration.
3. Take GST Registration if required or useful.
4. Complete the Shop and Establishment Registration or intimation.
5. Open a current account in the trade name (see Documents, bank account and tax for a Proprietorship).

Key takeaways

• There is no single Proprietorship Registration; you combine the Registrations your business needs.
• Udyam Registration is free on the official portal and has no expiry.
• GST Registration is compulsory above ₹40 lakh (goods, most states) or ₹20 lakh (services), or from day one in specified cases.
• Shop and Establishment rules vary by state; in Maharashtra, under ten workers means intimation, ten or more means Registration.