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

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

Shops and Establishments Registration

The Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 applies to commercial establishments. Establishments with 10 or more workers register online with the Labour Department, while smaller ones file an intimation. It's one of the documents banks commonly accept as proof of your business for a current account.

Professional Tax

Maharashtra 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

Depending on the business, a shop or office in Mumbai, Pune or another municipal corporation may need a licence from the local body, such as a health licence for food businesses. It's tied to your premises and usually renewed every year.

GST

Register for GST once your aggregate turnover crosses the threshold. In Maharashtra, 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 Maharashtra 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 Maharashtra

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 Maharashtra with all the state and local registrations they need.