Starting a Business in Andaman and Nicobar Islands: Choosing a Structure and Local Registrations

Choosing a structure and incorporating works the same way across India. But starting a business in Andaman and Nicobar Islands also means dealing with local registrations and local authorities, and knowing the local startup ecosystem. This guide covers the local side.

Incorporation and the ROC

Companies and LLPs with a registered office in Andaman and Nicobar Islands are registered with the Registrar of Companies, Kolkata. The registered office can be a home, a co-working space, or an office, with the right address proof.

Local Registrations

• Professional Tax: Check with the Andaman and Nicobar administration whether professional tax applies to your company and its employees.
• Shops and Establishments: Check whether the shops and establishments rules in force in the islands apply to your office, and register with the Labour Department if they do.
• Trade licence: An office within the Sri Vijaya Puram Municipal Council or another local body area usually needs a trade licence.
• GST: registration once turnover crosses the threshold, or immediately in compulsory cases. Check the current threshold for Andaman and Nicobar Islands with the GST department, as some regions use lower limits.

Industrial and Manufacturing Units

Manufacturing and industrial units need further approvals — building permissions, fire safety, pollution control consents, factory licences, and power connections. In Andaman and Nicobar Islands, the administration's online clearance system brings many of these together. Industrial land is often allotted through the administration's Industries Department.

The Startup Ecosystem

Startups in Andaman and Nicobar Islands are concentrated around Port Blair. Local support includes:

• Support from the administration's Industries Department for local entrepreneurs.

Startups can also apply for DPIIT recognition nationally, and explore the administration's policies for startups and innovation.

Choosing a Structure

The choice of structure doesn't depend on the union territory, but local factors can matter: local incentives may be tied to the entity that applies for them, and land allotments may restrict transfers, so it's best to set up the long-term entity before applying for either.

A Checklist for Founders in Andaman and Nicobar Islands

1. Choose the structure based on funding plans and risk.
2. Incorporate with the ROC, or set up the proprietorship's registrations.
3. Check whether Professional Tax applies, and register under Shops and Establishments where it applies.
4. Get a trade licence for your premises.
5. For manufacturing, apply for approvals through the administration's online clearance system.
6. Explore local incubators and startup programmes.

Getting Help

Think Filing helps founders start businesses in Andaman and Nicobar Islands, from incorporation to local registrations.