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Home / Checklist - Proprietorship

Checklist - Proprietorship

Last updated · 3 August 2026

A proprietorship is not a separate legal person. There is no Registrar, no annual return and no separate registration under any companies or partnership statute — the proprietor and the business are the same person in law, and the business is assessed in the proprietor's own return. What a proprietorship does have is a set of registration-led obligations: GST, tax deduction at source, the State shops and establishments law, and labour law once there are employees.

Registrations and filings

There is no filing with any Registrar of companies or firms. What follows is registration-led: each line applies only if the corresponding registration has been taken, or ought to have been.

#ComplianceDue date
1Annual filing with a RegistrarNone. A proprietorship is not registered under any companies or partnership statute
2Shops and Establishments registration under the State Act, and renewal where the State requires itRegistration within thirty days of commencement. Renewal cycles run from one year to lifetime, depending on the State
3Udyam registration for a micro, small or medium enterpriseOne-time, with the details updated annually from the income tax and GST returns
4GST registrationCompulsory once aggregate turnover crosses ₹40 lakh for goods or ₹20 lakh for services, and ₹20 lakh and ₹10 lakh respectively in the special-category States. Registration within thirty days of becoming liable
5Tax deduction account number and TDS complianceRequired where the proprietor is liable to deduct tax at source, which for an individual generally arises once the accounts of the preceding year were subject to tax audit
6Professional tax enrolment, in the States that levy itOne-time enrolment, with the periodic payment and return prescribed by the State
7Trade licence, food licence, drug licence or other sector licenceAs applicable to the trade, with renewal on the cycle fixed by the licensing authority

Because there is no separate entity, the business income is returned in the proprietor's own return of income, and the proprietor's personal position determines the due date.

Meetings

There are none. A proprietorship has no members, no partners and no board, and nothing in law requires a meeting or a minute. That is its principal administrative advantage, and it is worth saying plainly rather than filling this section with obligations that do not exist.

#Meeting or obligationRequirement
1Any statutory meetingNot required. There is no separate legal person and no body of members
2Internal Committee under the POSH ActThe one body a proprietorship may nevertheless have to constitute — it is required at any workplace with ten or more employees, whatever the form of the business
3Records of decisionsNot required by law, but where the business has employees or borrowings, a dated written record of the decisions taken is worth keeping

Documents required to be drafted

The document set is short. What matters is that the business records are kept distinct from the proprietor's personal ones, because the two are the same person in law and an assessing officer will look at both.

#DocumentWhen
1Books of account under section 44AA of the Income-tax Act, where the income or turnover thresholds are crossedMaintained through the year
2Annual accounts of the business — trading and profit and loss account and balance sheetFor the year ended 31 March
3Auditor's report, where a tax audit is attractedBy 30 September
4GST records — tax invoices, credit and debit notes, the stock register and the input tax credit reconciliationMaintained through the year
5Employment records — appointment letters, the wage register, the attendance register and the POSH policy, where there are employeesMaintained through the year
Records to be maintained
  • Books of account under section 44AA of the Income-tax Act, kept for six years from the end of the relevant assessment year.
  • GST records, kept for seventy-two months from the due date of the annual return.
  • Registers under the State Shops and Establishments Act — the register of employment, the wage register and the leave register, in the form prescribed by the State rules.
  • Licences and registration certificates, with their renewal dates diarised.

Taxation and accounting compliances

Alongside the filings with the Registrar, the following tax and accounting compliances commonly apply. Which of them actually bite depends on turnover, on the nature of the receipts and on registration under the respective statute.

#ComplianceDue date
1Form ITR-3 or Form ITR-4 — return of income of the proprietor. ITR-4 where income is computed on a presumptive basis under section 44AD, 44ADA or 44AE.31 August where the accounts are not audited; 31 October where they are
2Tax audit report in Form 3CB with Form 3CD — where turnover exceeds ₹1 crore, or ₹10 crore where cash receipts and cash payments are each not more than five per cent, or gross receipts from a profession exceed ₹50 lakh, and also where the proprietor opts out of a presumptive scheme having opted into it30 September
3GST returns — GSTR-1 monthly (11th of the following month) or quarterly under QRMP (13th of the month after the quarter), and GSTR-3B monthly (20th) or quarterly (22nd or 24th, depending on the State group). Registration is required once turnover crosses ₹40 lakh for goods or ₹20 lakh for services (₹20 lakh and ₹10 lakh in special-category States).Monthly or quarterly, as opted
4GSTR-9 — GST annual return, where aggregate turnover exceeds ₹2 crore31 December following the financial year
5GSTR-9C — self-certified reconciliation statement, where aggregate turnover exceeds ₹5 crore31 December following the financial year
6TDS returns — Form 24Q (salary), 26Q (resident non-salary) and 27Q (non-resident), by every person holding a TAN31 July, 31 October, 31 January and 31 May
7TCS return — Form 27EQ, by every person liable to collect tax at source15 July, 15 October, 15 January and 15 May
8Monthly deposit of TDS and TCS7th of the following month; 30 April for March
9TDS and TCS certificates — Form 16 (salary), Form 16A and Form 27DForm 16 by 15 June; Form 16A and 27D within 15 days of the return due date
10Advance tax — where the tax liability for the year is ₹10,000 or more, in instalments of 15, 45, 75 and 100 per cent of the estimated liability15 June, 15 September, 15 December and 15 March

Dates are those applicable to the financial year 2025-26 (assessment year 2026-27). The Income-tax Act, 2025 replaces the 1961 Act from tax year 2026-27, and the section numbers in every tax checklist will change from that year — the dates above are stated on the 1961 Act as it applies to this cycle.

Labour law compliances and their applicability

Labour law obligations are triggered by headcount and by wage levels rather than by the form of the entity, so the same table applies whether the employer is a company, an LLP, a firm or a proprietor. The threshold column is what decides whether a line applies at all.

#ComplianceApplies to
1Employees' Provident Fund — monthly ECR and remittance of contributions at 12 per cent by each of employer and employee. Paid by the 15th of the following month. The separate annual returns in Form 3A and 6A were discontinued when the ECR was introduced; the annual account is generated automatically.Establishments employing 20 or more persons. Mandatory coverage up to a wage of ₹15,000 a month; voluntary coverage is possible below the threshold
2Employees' State Insurance — monthly contribution and challan at 3.25 per cent (employer) and 0.75 per cent (employee), by the 15th of the following month, and the half-yearly return of contributions where the region still requires itEstablishments employing 10 or more persons (20 in some States for shops). Covers employees drawing wages up to ₹21,000 a month, or ₹25,000 for a person with disability
3POSH — constitution of the Internal Committee, a policy, and an awareness and training programmeEvery workplace with 10 or more employees, counting all workers of every description. Members hold office for a maximum of three years and must then be reconstituted
4POSH annual report to the District Officer, and the disclosure of the number of complaints in the Board's reportEvery employer that is required to have an Internal Committee. Section 22 does not fix a central date — the date is set by the State rules, and is 31 January in several States and 28 February or 31 March in others. Confirm the date for the State in which the workplace is situated.
5Payment of Bonus — payment of the annual bonus and the annual return in Form DEstablishments employing 20 or more persons, for employees drawing up to ₹21,000 a month. Bonus is payable within eight months of the close of the year
6Payment of Gratuity — payment on the event, and the notices in Forms A, B and CEstablishments employing 10 or more persons. Payable after five years of continuous service, and after one year for a fixed-term employee
7Maternity Benefit — 26 weeks of paid leave, and the registers and returns under the State rulesEstablishments employing 10 or more persons. A creche is required at 50 or more
8Professional tax — enrolment, registration and the periodic returnOnly in the States that levy it — Maharashtra, Karnataka, West Bengal, Tamil Nadu, Andhra Pradesh, Telangana, Gujarat, Madhya Pradesh, Odisha, Kerala, Assam and others. It is not levied in Delhi, Uttar Pradesh, Haryana, Rajasthan or Punjab
9Shops and Establishments — registration and, where the State requires it, renewalEvery shop and commercial establishment, from the day it commences. Registration within 30 days; renewal cycles run from one year to lifetime depending on the State
10Contract labour — registration of the principal employer, licensing of the contractor, and the periodic returnsWhere 20 or more contract workers are engaged (the threshold is 50 under the Occupational Safety, Health and Working Conditions Code, 2020)
11Minimum wages — payment at not less than the notified rate, with the variable dearness allowance revisionEvery scheduled employment. Central revisions usually take effect on 1 April and 1 October; State cycles differ

Headcount thresholds are counted across the establishment, not the entity, and several of them are State-specific. Where an entity operates from more than one State the position must be tested State by State.

The four Labour Codes are now in force. The Code on Wages, 2019, the Industrial Relations Code, 2020, the Occupational Safety, Health and Working Conditions Code, 2020 and the Code on Social Security, 2020 were brought into force on 21 November 2025, and the Central Rules were notified in May 2026. The Employees' State Insurance Act, the Payment of Bonus Act, the Payment of Gratuity Act and the Maternity Benefit Act stand subsumed into the corresponding chapters of the Code on Social Security; the Employees' Provident Funds Act was preserved by a corrigendum issued in December 2025 pending a further notification. In practice the EPFO and ESIC portals, forms and dates continue as before, so the table above still describes what has to be done. The change that matters most is the new definition of wages, under which basic pay and dearness allowance must be at least half of total remuneration — it re-bases provident fund, gratuity, bonus and leave encashment for almost every employer. State rules remain incomplete in several States.

Event-based compliances

Everything set out above recurs every year. Separately from these, a proprietorship attracts event-based compliances — obligations that arise only when something particular happens, and that usually carry a short deadline running from the date of the event itself rather than from the close of the financial year.

These are not listed here, and deliberately so. They run to a very long list, they depend entirely on what has actually happened, and a general page cannot tell you which of them apply to you. Typical triggers include a change in the persons in charge, a change in capital or in the constitution, the creation or satisfaction of security over assets, a change of address, the approval of a transaction of a kind that requires prior consent, and the acquisition or disposal of an interest by a person who has to be reported to the licensing authority. Several of them carry a filing window of 15 or 30 days, and the additional fee for filing late can be many times the normal fee.

If an event of this kind has occurred, or is being planned, the position should be checked before the deadline rather than after it. Please write to us with what has happened and we will tell you what has to be filed and by when.

These are the major compliances applicable to a proprietorship. They are not the whole of the law. This checklist is general. It sets out the filings, meetings, documents and returns that apply to most Proprietorship Firms in the ordinary course. Apart from these, there may well be further compliances that apply to you — because of the sector you operate in, the licences you hold, the States you operate from, the composition of your ownership, a foreign shareholder or lender, a registration you have taken under a special statute, or simply because of something that has happened during the year. Thresholds and due dates also change from year to year, and a date that is right for one financial year may not be right for the next.

Please do not treat this page as advice on your own facts. Before you rely on it, have the position checked against your own constitution documents, your last filed accounts and your actual figures for the year. We would be glad to do that for you.

Have your position checked

Tell us what the entity is and we will confirm exactly which of these apply to you this year, what is already overdue, and what it will cost to put right.

Prepared by MPS & Associates, Company Secretaries, on the law as it stood on 3 August 2026, by reference to the Ministry of Corporate Affairs, the Securities and Exchange Board of India, BSE Limited, the National Stock Exchange of India Limited, the Reserve Bank of India, the Central Board of Direct Taxes and the Goods and Services Tax Network, as applicable. Statutes, rules, thresholds and due dates change. Nothing on this page is professional advice, and no professional relationship arises from reading it. Please see our Disclaimer.

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