—Proprietorship
Starting a Proprietorship in Chhattisgarh: Shops and Establishments, PT and Trade Licence
The registrations a proprietor in Chhattisgarh typically needs: Shops and Establishments, Professional Tax, trade licence, GST, and Udyam.
A proprietorship doesn't need incorporation, but it does need the right registrations — and in Chhattisgarh, several of those are state and local. This guide covers what a proprietor in Chhattisgarh typically needs.
Shops and Establishments Registration
Chhattisgarh's shops and establishments law applies to commercial establishments in the state. Depending on the number of employees, the business may need to register or simply give intimation to the Labour Department. It's one of the documents banks commonly accept as proof of your business for a current account.
Professional Tax
Check with the authorities in Chhattisgarh whether Professional Tax applies to you and any staff, as rules differ and change from time to time.
Trade Licence
A shop or office within Raipur Municipal Corporation or another municipal area may need a trade licence from the local body. It's tied to your premises and usually renewed every year.
GST
Register for GST once your aggregate turnover crosses the threshold. In Chhattisgarh, 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 Chhattisgarh 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 Chhattisgarh
- Register under the shops and establishments law.
- Check whether Professional Tax applies, and enrol if it does.
- Get a trade licence from your local body.
- Register for GST when you cross ₹40 lakh for goods or ₹20 lakh for services, or earlier if required.
- Get Udyam registration.
- Open a current account in the trade name.
Getting Help
Think Filing sets up proprietorships in Chhattisgarh with all the state and local registrations they need.