Proprietorship Firm Registration is the formal process of establishing a business under the ownership of a single individual, known as the proprietor. It is the most basic and widely used business structure in India, especially among small traders, shopkeepers, and service providers.
In a proprietorship, the owner and the business are not treated as separate legal entities, meaning the proprietor is personally liable for all business debts and obligations. There is no mandatory central registration, but the firm can be recognized legally through various government registrations like GST registration, Udyam (MSME) registration, Shop and Establishment Act license, and a current bank account in the firm’s name.
This type of registration offers ease of setup, low compliance, and complete control to the owner, making it suitable for those starting small-scale or low-investment businesses.