Kaagazaat

Proprietorship Closure Declaration

At a glance

Price: Free, always.
Stamp duty: An affidavit is printed on stamp paper of a small fixed value.
Registration: Not registrable; it is produced to the office that asked for it.
Witnesses: No witnesses; the deponent signs and the notary attests.

Free

Free, always.

Free: up to 5 documents a day.

Guided questions, full draft on screen, download in Word.

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Also called

proprietorship closure affidavit
business closure declaration
shop closure affidavit
closing a sole proprietorship
GST cancellation affidavit support
bank account closure business declaration
firm band karne ka halafnama

When you need it

A sole proprietor in Punjab or Chandigarh who has stopped trading wants a sworn record that the business is closed, from what date, and that its debts and obligations have been dealt with. Banks ask for such a declaration to close a current account, the tax office asks for the facts behind an application to cancel the GST registration, and a landlord, licensing office or supplier may ask for it to end an account or licence.

The declaration states the closure date and the reason, lists the registrations and licences to be cancelled and the bank accounts to be closed, says whether all liabilities have been paid (and lists any that remain), records what happened to the stock, the staff and the records, and promises to file the final returns and keep the books for the period the law requires. It does not itself cancel any registration: each is cancelled by its own application, in the authority's own form or online, and some need returns filed up to the date first. Not for forming or declaring a proprietorship (use the Sole Proprietorship Declaration). Not for closing a partnership or a company, which are wound up differently. Not for transferring the business to a buyer (use the Business Sale Agreement).

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You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

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See stamp duty, registration and witnesses

What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

An affidavit is printed on stamp paper of a small fixed value. No Punjab or Chandigarh table consulted for this document lists the exact figure, so ask the stamp vendor, the e-stamping portal or the notary what the office accepts today.

Registration

Not registrable; it is produced to the office that asked for it.

Notarisation

Must be sworn or affirmed before a Notary Public or an Oath Commissioner. The deponent signs in front of the notary and carries original photo ID.

Witnesses

No witnesses; the deponent signs and the notary attests.

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Sample preview — placeholder answers, not your data

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DECLARATION AND AFFIDAVIT ON THE CLOSURE OF A SOLE PROPRIETORSHIP

I, Ramesh Chander Verma, son, daughter or wife of Late Sh. Om Prakash Verma, aged 52 years, residing at House No. 211, Sector 15-A, Chandigarh 160015, PAN AKJPI4432R, do solemnly affirm and declare on oath as follows.

1. That I was the sole proprietor of Verma Medical and General Store, which carried on retail sale of medicines and general goods at Shop No. 14, Sector 22-D Market, Chandigarh 160022, and that no other person had any share in the business.

2. That the business stopped trading and was closed with effect from 1 April 2026, because I decided to stop carrying on the business, and that it has carried on no business since that date.

3. That the business held these registrations and licences, which I am cancelling or have applied to cancel, each by its own application: GSTIN 04ABCPV1234F1Z5; shop and establishment registration no. CH/SE/2019/4567; retail drug licence no. 20B/CH/2019/123.

4. That the business bank accounts being closed are: Current account no. XXXX5678, Punjab National Bank, Sector 22, Chandigarh. (if blank, the accounts are named in the bank's own closure form), and that all money in them has been or will be withdrawn by me as the sole proprietor.

5. That all debts, wages, rent and dues of the business have been paid in full. The dues that remain are: Supplier dues of about Rs 38,000 to Mehta Distributors, to be paid by 30 September 2026. I am personally responsible for them, since a sole proprietor and the business are the same person in law.

6. That the stock, fittings and other assets of the business were dealt with as follows: Saleable stock was sold off or returned to suppliers; unsaleable and expired stock was destroyed as the law requires; fittings were sold. Any employee has been paid all that was due on leaving.

7. That I shall file the final tax returns and statements for the business up to the date of closure, pay any tax found due, and keep the books of account and records of the business with me at my residence for the period the law requires, and produce them whenever an authority asks.

8. That this declaration is made for closing the business bank account(s), and that the statements in it are true to my knowledge and belief and nothing material has been concealed.

VERIFICATION. Verified at Chandigarh on 2 April 2026 that the contents of this affidavit are true and correct to my knowledge and belief and no part of it is false.

DEPONENT: Ramesh Chander Verma
Signature: ______________________________

Sworn before the Notary Public or Oath Commissioner at Chandigarh on 2 April 2026.

Questions about this document

Does the Proprietorship Closure Declaration need stamp paper or stamp duty in Punjab and Chandigarh?

An affidavit is printed on stamp paper of a small fixed value.

See the full position on stamp duty, registration and witnesses

Does the Proprietorship Closure Declaration need registration in Punjab and Chandigarh?

Not registrable; it is produced to the office that asked for it.

See the full position on stamp duty, registration and witnesses

What does the Proprietorship Closure Declaration cost on Kaagazaat?

Free, always.

Does the Proprietorship Closure Declaration need witnesses?

No witnesses; the deponent signs and the notary attests.

See the full position on stamp duty, registration and witnesses

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