Starting a Business in Chhattisgarh: Choosing a Structure and Local Registrations

Choosing a structure and incorporating works the same way across India. But starting a business in Chhattisgarh 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 Chhattisgarh are registered with the Registrar of Companies, Chhattisgarh, at Bilaspur. The registered office can be a home, a co-working space, or an office, with the right address proof.

State Registrations

• Professional Tax: Check with the Chhattisgarh Commercial Taxes Department whether professional tax applies to your company and its employees. Rules differ from state to state and change from time to time.
• Shops and Establishments: Chhattisgarh's shops and establishments law applies to commercial establishments in the state. Depending on the number of employees, the office may need to register or simply give intimation to the Labour Department.
• Trade licence: An office within Raipur Municipal Corporation or another municipal area may need a trade licence from the local body.
• GST: registration once turnover crosses the threshold, or immediately in compulsory cases. In Chhattisgarh, the threshold is ₹40 lakh for goods and ₹20 lakh for 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 Chhattisgarh, the state's single-window clearance system brings many of these together. Industrial land is often allotted through CSIDC (Chhattisgarh State Industrial Development Corporation).

The Startup Ecosystem

Startups in Chhattisgarh are concentrated around Raipur and Bhilai. Local support includes:

• 36Inc: the state-backed incubator in Raipur.
• Incubation at institutions such as IIT Bhilai and IIM Raipur.

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 Chhattisgarh

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 state's single-window clearance system.
6. Explore local incubators and startup programmes.

Getting Help

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