Starting a Business in Arunachal Pradesh: Choosing a Structure and Local Registrations

Choosing a structure and incorporating works the same way across India. But starting a business in Arunachal Pradesh also means dealing with state 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 Arunachal Pradesh are registered with the Registrar of Companies, Shillong, which covers most of the north-eastern states. The registered office can be a home, a co-working space, or an office, with the right address proof.

State Registrations

• Professional Tax: Arunachal Pradesh doesn't currently levy a state professional tax, so there's no enrolment or deduction to set up. If the company has staff or offices in other states, those states' professional tax rules still apply there.
• Shops and Establishments: Check whether the state's shops and establishments rules apply to your office, and register with the Labour Department if they do.
• Trade licence: An office in Itanagar or another municipal area may need a trade licence from the local municipal body.
• GST: registration once turnover crosses the threshold, or immediately in compulsory cases. In Arunachal Pradesh, the threshold is ₹20 lakh for both goods and services.

Industrial and Manufacturing Units

Manufacturing and industrial units need further approvals — building permissions, fire safety, pollution control consents, factory licences, and power connections. In Arunachal Pradesh, the state's single-window clearance system brings many of these together. Industrial land is often allotted through the state Department of Industries.

The Startup Ecosystem

Startups in Arunachal Pradesh are concentrated around Itanagar. Local support includes:

• The state's startup policy and support for local entrepreneurs.
• North East Venture Fund: a fund set up with SIDBI that invests in startups from the north-eastern states.

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

Choosing a Structure

The choice of structure doesn't depend on the state, but local factors can matter: state 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 Arunachal Pradesh

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

Getting Help

Think Filing helps founders start businesses in Arunachal Pradesh, from incorporation to state registrations.