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

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

Shops and Establishments Registration

The Kerala Shops and Commercial Establishments Act applies to shops and offices in the state. Register with the Labour Department. It's one of the documents banks commonly accept as proof of your business for a current account.

Professional Tax

In Kerala, Professional Tax is collected by local bodies rather than the state. As a proprietor, you enrol with the local body where your business is located, pay PT for yourself, and deduct it from staff salaries if you employ anyone.

Trade Licence

A shop or office within a municipal corporation such as Kochi or Thiruvananthapuram, a municipality or a panchayat usually needs a 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 Kerala, 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 Kerala 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 Kerala

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 Kerala with all the state and local registrations they need.