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

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

Shops and Establishments Registration

Puducherry's shops and establishments law applies to commercial establishments in the territory. 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 Puducherry, Professional Tax is collected by local bodies rather than the administration. 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 municipality, such as Puducherry, Oulgaret or Karaikal, usually needs 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 Puducherry, the threshold is ₹20 lakh for both goods and 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 Puducherry.

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 Puducherry

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 ₹20 lakh, 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 Puducherry with all the local registrations they need.