A proprietorship does not have any separate legal status than that of its individual proprietor. As there are no formal requirements for starting a proprietorship, there are no formal requirements for closing it as well.

A proprietor can close the business as and when he wishes to do so. There is no reporting or compliance for closing a proprietorship business. However, records such as books of accounts and income tax returns filing is required to be kept updated for record purposes.

However, if the proprietorship has obtained registrations such as GST, Shops and Establishment and Professional Tax, all the related compliance have to be completed and formal closure of all these registrations have to be done.