Andhra Pradesh Chief Minister N Chandrababu Naidu, BJP presidents of the state and Telangana K Haribabu and G Kishan Reddy and leaders of TDP and BJP accompanied her as she submitted her papers to the Legislature Secretary.
The Telugu Desam Party, an ally in the BJP-led NDA government, is supporting her candidature.
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Sitharaman, who is Union Minister of State for Commerce and Industry (Independent charge), is expected to be elected unopposed as the only opposition party YSR Congress is said to be not inclined to jump into the contest.
The by-election was caused due to the death of sitting MP N Janardhana Reddy of the Congress, whose term was originally supposed to end on June 21, 2016.
The TDP-BJP alliance has a comfortable majority of 107 members in the 175-member Assembly.
Last date for filing of nominations is June 23 and June 26 for withdrawal. The election, if required, will be held on July 3.