Starting a Proprietorship in Andhra Pradesh: Shops and Establishments, PT and Trade Licence

A proprietorship doesn't need incorporation, but it does need the right registrations — and in Andhra Pradesh, several of those are state and local. This guide covers what a proprietor in Andhra Pradesh typically needs.

Shops and Establishments Registration

Offices and shops register under the Andhra Pradesh Shops and Establishments Act with the state Labour Department. It's one of the documents banks commonly accept as proof of your business for a current account.

Professional Tax

Andhra Pradesh levies Professional Tax. As a proprietor, you enrol and pay PT for yourself, and if you employ staff, register as an employer to deduct and pay PT on their salaries.

Trade Licence

From the local body, such as Greater Visakhapatnam, Vijayawada or Guntur municipal corporations, or the local municipality elsewhere. It's tied to your premises and usually renewed every year.

GST

Register for GST once your aggregate turnover crosses the threshold. In Andhra Pradesh, the threshold is ₹40 lakh for goods and ₹20 lakh for services. Register earlier if you make inter-state supplies of goods or sell through e-commerce platforms.

Udyam

Udyam registration is free and gives you MSME status, with protection on delayed payments and access to the Andhra Pradesh Micro and Small Enterprises Facilitation Council.

Sector Licences

• Food businesses: FSSAI registration or licence.
• Pharmacies: drug licence from the state drugs control authority.
• Importers and exporters: IEC.

Bank Account

With two registrations in the business's name — for example, Shops and Establishments and Udyam, or GST — you can open a current account in your trade name.

A Checklist for Proprietors in Andhra Pradesh

1. Register under the shops and establishments law.
2. Enrol for Professional Tax.
3. Get a trade licence from your local body.
4. Register for GST when you cross ₹40 lakh for goods or ₹20 lakh for services, or earlier if required.
5. Get Udyam registration.
6. Open a current account in the trade name.

Getting Help

Think Filing sets up proprietorships in Andhra Pradesh with all the state and local registrations they need.