Statutory Registrations for a New Business in India: PAN, TAN, GST, EPF, ESIC and More

Starting a business in India means dealing with a string of registrations, and it is not always obvious which ones apply to you or in what order. This guide explains the main statutory registrations, what triggers each one, and how to plan them so you do not miss a deadline or register for something you do not need.

Which Registrations Does a New Business Need?

There is no single registration that covers everything. Each one is triggered by something specific you do. The easiest way to work out your list is to ask what your business will do.

If you start any business

PAN. Every business entity needs one, and a sole proprietor uses their personal PAN. Companies and LLPs get theirs automatically on incorporation.
A business bank account, which banks open against your PAN and constitution documents.
The right business structure, such as a proprietorship, partnership, LLP or company, which decides what else you need to file.

If you pay salaries, contractors, rent or professional fees

TAN, if you have to deduct tax at source on those payments
Employee registrations, described below, once you hire

If you employ people

EPF when your headcount reaches the threshold, and voluntarily before that
ESIC when you reach its threshold and employ people below the wage limit
Professional tax, in states that levy it
A state Shops and Establishments registration, for most commercial establishments

If you sell goods or services

GST, once your turnover crosses the limit, or earlier in cases such as inter-state supply
Sector licences, such as FSSAI if you deal in food
A municipal trade licence, where your local body requires one
Udyam, which is optional but useful for small businesses

If you import or export

An Import Export Code from DGFT for goods
GST registration and a Letter of Undertaking for zero-rated exports
A Digital Signature Certificate for customs and DGFT portals

National versus state and local

PAN, TAN, GST, EPF, ESIC, Udyam and IEC are national registrations with uniform rules. Professional tax, Shops and Establishments registration and trade licences are set by each state or local body, so the details differ between, say, Telangana, Karnataka and Maharashtra. Check your own state's rules for these.

Tax Registrations: PAN, TAN, GST and Professional Tax

PAN

PAN is the base of your tax identity, and most other registrations need it. From 1 April 2026, new applications use Form 93 for Indian individuals and Form 94 for Indian entities, and Aadhaar alone is no longer accepted as proof of date of birth. An individual with a linked Aadhaar and mobile number can get a free instant e-PAN on the Income Tax e-filing portal. Our separate guide on PAN and TAN covers the process in detail.

TAN

TAN is needed once you have to deduct or collect tax at source. That covers employers paying salaries above the tax-free limit and businesses paying rent, contractor fees, professional fees or interest above the thresholds. TAN is a separate number from PAN and cannot be replaced by it, except in narrow cases such as a property buyer deducting tax on a purchase. Applications now use Form 135 for private applicants, with a fee of ₹77 including GST and mandatory supporting documents. Not obtaining one when required attracts a ₹10,000 penalty.

GST

GST registration becomes compulsory when your aggregate turnover crosses the limit for your type of supply and your state:

Services: ₹20 lakh in most states
Goods: ₹40 lakh in most states, and ₹20 lakh in ten states and union territories, including Telangana

Aggregate turnover is counted across India under one PAN and includes exempt sales and exports. You must apply within 30 days of crossing the limit. Some businesses must register from the first rupee, including those making inter-state supplies of taxable goods, casual taxable persons, persons liable to pay tax under reverse charge, and e-commerce operators. Voluntary registration is allowed below the limit and is common among businesses that sell to other GST-registered businesses. Small businesses can also choose the composition scheme, which replaces regular GST with a flat percentage of turnover, though it removes the right to claim input tax credit. Our separate guides cover registration and returns.

Professional tax

Professional tax is a state levy on income from employment, trade or profession. It is capped at ₹2,500 per person per year by the Constitution, and about 21 states and union territories charge it. Employers register with the state authority, deduct the tax from employees' salaries each month and pay it to the state. Self-employed professionals and business owners may need to enrol to pay it on their own income. Rates, slabs and due dates differ from state to state, so check your state's rules. Some states offer a certificate for employers and a separate enrolment for the self-employed.

Employment and Business Registrations

Social security rules are moving under the labour codes, which have been in force since 21 November 2025, and some limits changed as recently as September 2026. Confirm current figures before you rely on any number here.

EPF (Provident Fund)

EPF is mandatory for establishments with 20 or more employees, and smaller employers can register voluntarily. Once an establishment is covered it stays covered even if headcount later falls. Both employer and employee contribute 12% of wages. Registration is online through the government's Shram Suvidha portal, and each employee gets a Universal Account Number (UAN).

A major change took effect on 17 September 2026: the statutory wage ceiling for mandatory EPF coverage was raised from ₹15,000 to ₹25,000 a month by a Ministry of Labour notification. Employees earning between ₹15,001 and ₹25,000 who were not members before are now covered from that date, and pension contributions are computed on wages up to ₹25,000. Existing members stay members. If you have employees in this wage band, update your payroll and enrol them.

ESIC (Employees' State Insurance)

ESIC provides medical and cash benefits to employees. It applies to non-seasonal factories and to establishments such as shops, hotels, restaurants, cinemas, road transport undertakings and private educational and medical institutions that employ 10 or more people (20 in some states). Employees earning up to ₹21,000 a month are covered, or ₹25,000 for persons with disabilities, and the September 2026 EPF change did not alter that ESIC limit. The employer contributes 3.25% and the employee 0.75% of wages. Registration is also done through the Shram Suvidha portal, and contract workers count toward the headcount.

Shops and Establishments registration

This is a state law that covers shops, offices, restaurants, IT companies and most commercial establishments. It regulates working hours, holidays and conditions of work, and registration is generally required for each place of business. The process, fees and documents differ by state, and it is often needed for opening a bank current account.

Udyam (MSME) registration

Udyam registration is free, online, paperless and valid for life. It is optional, but it gives access to collateral-free loans, government tenders, delayed-payment protection and other support. It also matters for your customers: under Section 43B(h) of the Income Tax Act, buyers who do not pay micro and small suppliers within 45 days lose the tax deduction for that expense, which gives your invoices real weight.

The limits in force from 1 April 2025 are:

Micro: investment up to ₹2.5 crore and turnover up to ₹10 crore
Small: investment up to ₹25 crore and turnover up to ₹100 crore
Medium: investment up to ₹125 crore and turnover up to ₹500 crore

You must satisfy both the investment and turnover limits for a category, and the portal reclassifies you automatically each year using your GST and income tax data. Register only on the official portal, since many paid lookalike sites charge for something that is free.

IEC (Import Export Code)

An IEC is needed to import or export goods. The DGFT government fee is a one-time ₹500, applications are made online, and the code is generally issued within one to three working days. It is tied to your PAN, with one IEC per PAN, and it is valid for life. You must confirm or update your details on the DGFT portal each year between 1 April and 30 June, or the IEC can be deactivated. Pure services exporters often do not need an IEC unless they claim a Foreign Trade Policy benefit, so check the current DGFT position for your case.

Municipal trade licence

Many local bodies require a trade or health trade licence for businesses such as restaurants, shops, workshops and warehouses. It is issued by the municipal corporation, municipality or panchayat, and the rules and fees are local, so ask your own body before you open.

A Sensible Order to Do Things In

Choose your structure and get your PAN. If you incorporate a company or LLP, PAN and TAN come with incorporation. A proprietor uses a personal PAN.
Open a business bank account. You will need your PAN, constitution documents and often your address proof.
Get a TAN before your first deduction, if you will pay salaries or other payments that attract TDS.
Register under the Shops and Establishments law and get any trade licence before you open your premises to customers.
Take sector licences early, such as FSSAI for food, since banks and platforms often ask for them first.
Register for GST when your turnover nears the limit, or earlier if you sell across states, sell through platforms or serve GST-registered business customers.
Register under Udyam. It is free and can be done any time.
Add EPF, ESIC and professional tax when you hire, and check the thresholds first.
Apply for an IEC and a Digital Signature Certificate if you import or export.

Quick checklists by type of business

A freelancer or consultant: PAN, a bank account, GST once you cross ₹20 lakh, and Udyam if you want MSME benefits.

A small shop or trader: PAN, Shops and Establishments registration, trade licence, GST (₹40 lakh for goods in most states, ₹20 lakh in Telangana and some others), Udyam, and FSSAI if you sell food.

A company with employees: PAN and TAN through incorporation, a bank account, Shops and Establishments, GST, professional tax, EPF at 20 employees, ESIC at 10 employees with wages within the limit, and a Digital Signature Certificate for filings.

An exporter: PAN, GST with a Letter of Undertaking, an IEC, a Digital Signature Certificate, and an authorised dealer code from your bank.

Common mistakes

Registering for GST but forgetting TAN until the first TDS payment is due
Assuming a small business needs none of these, when many apply from the first employee or the first rupee of certain sales
Skipping Udyam because the site asked for a fee, when the official registration is free
Missing the annual IEC update window between April and June
Relying on last year's EPF wage figures after the September 2026 ceiling change
Treating state registrations as national ones, and not checking your own state's rules for professional tax and Shops and Establishments

This guide is general information, not legal or tax advice. Thresholds, forms and fees change by notification, so confirm current details with the relevant authority or a professional before you act.