In a significant move aimed at promoting ease of doing business, the Indian government has recently announced the simplification of registration procedures for sole proprietorship firms. This initiative, part of broader efforts to empower micro and small enterprises, is expected to benefit millions of small business owners across the country. The Ministry of Micro, Small and Medium Enterprises (MSME) has streamlined the Udyam Registration process, making it entirely online and Aadhaar-based. Entrepreneurs can now register their businesses swiftly using just their Aadhaar number and basic business information, eliminating the need for cumbersome documentation and long waiting periods.

Furthermore, various state governments have relaxed requirements under the Shop and Establishment Acts, especially for enterprises employing fewer than 10 workers. This exemption will allow small proprietors to begin operations without being burdened by excessive local licensing requirements. In addition, the Goods and Services Tax (GST) registration portal has undergone upgrades to become more user-friendly, reducing delays in registration and verification processes. This is particularly beneficial for sole proprietors with turnovers near the mandatory GST thresholds of ₹20 lakh for services and ₹40 lakh for goods.

Officials noted that these changes are aimed at encouraging informal businesses to formalize and avail themselves of government schemes and financial support. Registration under the Udyam portal, now easier than ever, offers access to credit schemes, subsidies, and protection against delayed payments. The government expects these reforms to foster entrepreneurship, generate employment, and strengthen India’s MSME sector by making it more inclusive and digitally empowered.