—Proprietorship
Starting a Proprietorship in Tamil Nadu: Shops and Establishments, PT and Trade Licence
The registrations a proprietor in Tamil Nadu 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 Tamil Nadu, several of those are state and local. This guide covers what a proprietor in Tamil Nadu typically needs.
Shops and Establishments Registration
The Tamil Nadu Shops and Establishments Act applies to commercial establishments in the state, including a proprietor's shop or office. Register online 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 Tamil Nadu, 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 Greater Chennai Corporation or another municipal area 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 Tamil Nadu, 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 Tamil Nadu 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 Tamil Nadu
- Register under the shops and establishments law.
- Enrol for Professional Tax.
- 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 Tamil Nadu with all the state and local registrations they need.