How do you form a Proprietary Firm in India and what are the related Laws thereto?

Should you register your firm for legal recognition to your firm or no such registration is required?

No firm registration is required. Just open a bank account in the name of the sole proprietary concern showing your self as proprietor of the firm. Obtain a sales tax or other required permissions from the authorities. That is all.

For income tax purpose, the income of the sold Proprietary concern will be added to the proprietor's income. Please note that NRIs cannot a proprietary concern in India.

One of the website says the following:
1. Starting a firm or proprietary concern is the best
The biggest advantage of starting a firm or proprietary concern is the simplicity of procedures. Even between these two forms, a proprietary concern is simpler to set up as it can literally be operational from Day 1 and the setting up does not require any approval of any Government authority. There are a few registrations involved like registering your place of business, taking the Provident Fund (i.e. social security) registration number etc. A partnership has to be registered with the Registrar of Firms before it can start operations and the Partners have to enter into a Partnership Deed which is an agreement laying down the terms and conditions between the partners. Once the firm or proprietary concern is set up, there are very few requirements that it has to comply on an ongoing basis and this saves the cost paid to consultants.