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

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

Shops and Establishments Registration

Punjab's shops and commercial establishments law, as extended to Chandigarh, applies to shops and offices in the union territory. Register with the Chandigarh Labour Department. It's one of the documents banks commonly accept as proof of your business for a current account.

Professional Tax

Chandigarh doesn't currently levy Professional Tax, so there's nothing to enrol for. If you have staff or branches in other states, those states' rules apply there.

Trade Licence

Depending on the business, a shop or office within the Municipal Corporation Chandigarh may need a licence from the corporation. It's tied to your premises and usually renewed every year.

GST

Register for GST once your aggregate turnover crosses the threshold. In Chandigarh, 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 Micro and Small Enterprises Facilitation Council with jurisdiction over Chandigarh.

Sector Licences

• Food businesses: FSSAI registration or licence.
• Pharmacies: drug licence from the local 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 Chandigarh

1. Register under the shops and establishments law.
2. Confirm Professional Tax only for staff in other states.
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 Chandigarh with all the local registrations they need.