Sole Proprietorship Registration Fees in India (2025 Guide)

Starting a business as a sole proprietor is the most common and straightforward way for individuals to begin their entrepreneurial journey in India. It requires minimal regulatory compliance, and the cost of registration is relatively low. However, despite the simplicity, many first-time entrepreneurs are unsure about the actual cost involved in registering a sole proprietorship.

This article breaks down the typical fees associated with sole proprietorship registration fee in India, including mandatory and optional costs.

What Is a Sole Proprietorship?

A sole proprietorship is a business owned and operated by a single individual, where there is no legal distinction between the owner and the business. It is not a separate legal entity, which means the owner is personally responsible for all profits, losses, and liabilities.

Is Sole Proprietorship Registration Mandatory?

Technically, there is no formal government registration required to create a sole proprietorship. However, to make the business legally operational, it must have certain registrations and licenses, depending on its nature and location.

Breakdown of Sole Proprietorship Registration Fees

While there's no single official registration certificate for a sole proprietorship, the following registrations are commonly used to establish the existence of the business:

1. GST Registration (if applicable)

• Fee: Free (Government fee)

• Professional fee: ₹500 – ₹1,500

• Required if your annual turnover exceeds ₹40 lakhs (₹20 lakhs for service providers in some states), or if you’re selling goods/services online.

2. Udyam Registration (MSME Registration)

• Fee: Free (Government fee)

• Professional fee: ₹300 – ₹1,000 (if using consultant services)

• Optional but recommended for small businesses. Helps in applying for loans, subsidies, and government tenders.

3. Shop and Establishment License (State-wise requirement)

• Government fee: ₹250 – ₹5,000 (varies by state and number of employees)

• Professional fee: ₹500 – ₹2,000

• Mandatory for businesses operating out of a commercial space or shop.

4. Current Account Opening

• Fee: Varies by bank (often free, some require a minimum balance)

• You’ll need at least one of the above registrations to open a current account in the name of the business.

5. Trademark Registration (Optional)

• Government fee: ₹4,500 (individual/startup)

• Professional fee: ₹2,000 – ₹5,000

• Optional but advised if you want to protect your business name, logo, or brand.

Typical Package Fees by Consultants

Many legal and tax consultants offer bundled packages to help sole proprietors get started:

Fees may vary depending on your location, business type, and the service provider.

Cost Summary Table

Final Thoughts

While there is no fixed cost for registering a sole proprietorship, a basic setup with essential licenses and services typically costs between ₹1,000 and ₹5,000 if handled independently, and ₹2,000 to ₹8,000 through a professional consultant.

If you're just starting out and don’t need a GST number or a shop license immediately, you can begin with Udyam Registration and open a current account using that as business proof. As your business grows, you can register for additional licenses as needed.

Pro Tip

Even though it’s not legally mandatory to use a consultant, hiring a professional can save time, help you avoid errors, and ensure compliance with state-specific regulations — especially if you're unfamiliar with the process.