PAN, TAN and Statutory Registrations in Delhi: What a New Business Needs

A business in Delhi deals with a mix of national and local registrations. PAN, TAN, GST, EPF, ESIC and Udyam work the same way across India, while professional tax, shops and establishments registration and local licences are set by the union territory and local bodies. This guide explains what a new business in Delhi needs, and the details that are specific to it.

Delhi is one of India's largest centres for new companies, with businesses in trading, professional services, consulting, media, education, healthcare, e-commerce and technology, and a startup scene that spans the wider NCR.

Tax Registrations in Delhi

PAN and TAN

PAN and TAN are national registrations issued by the Income Tax Department, so there's nothing specific to Delhi about how you get them. Since 1 April 2026, new PAN applications use Form 93 (Indian individuals) or Form 94 (Indian entities), and new TAN applications use Form 135 (Form 134 for government bodies). An individual with a linked Aadhaar and mobile number can get a free instant e-PAN online.

A company or LLP incorporated in Delhi deals with the Registrar of Companies, NCT of Delhi and Haryana through the MCA portal, and its PAN and TAN are generated with the incorporation. If you're a proprietor or a firm that will deduct TDS, apply for TAN before your first deduction.

GST in Delhi

GST registration is filed on the national portal, and your GSTIN will start with the state code 07. You must register once your aggregate turnover crosses ₹40 lakh for goods and ₹20 lakh for services in Delhi. Apply within 30 days of crossing the limit. Some businesses must register from the first rupee, such as those making inter-state supplies of taxable goods or selling through e-commerce platforms.

Professional tax in Delhi

Delhi doesn't levy professional tax, so there's no enrolment or deduction to set up for staff based in Delhi.

Employment Registrations in Delhi

Once you hire staff, several registrations come into play. Social security rules are moving under the labour codes, in force since 21 November 2025, and some limits changed in September 2026, so check figures against the latest notifications.

EPF (Provident Fund)

EPF is mandatory for establishments with 20 or more employees, and smaller employers can register voluntarily. Once covered, an establishment stays covered. Employer and employee each contribute 12% of wages. You register online through the Shram Suvidha portal, and each employee gets a Universal Account Number.

From 17 September 2026, the wage ceiling for mandatory EPF coverage was raised from ₹15,000 to ₹25,000 a month. Employees earning between ₹15,001 and ₹25,000 who weren't members before are now covered, and pension contributions are calculated on wages up to ₹25,000. Update your payroll and enrol newly covered employees.

ESIC (Employees' State Insurance)

ESIC covers medical and cash benefits for employees earning up to ₹21,000 a month, or ₹25,000 for persons with disabilities. It applies to non-seasonal factories and to shops, hotels, restaurants, cinemas, road transport undertakings and private educational and medical institutions with 10 or more employees, in areas where ESIC has been implemented. The employer pays 3.25% and the employee 0.75% of wages. Registration is also through Shram Suvidha, and contract workers count toward your headcount.

EPFO and ESIC allocate your establishment to the regional or sub-regional office that covers your area in Delhi, so check the jurisdiction shown on the portals when you register.

Labour Welfare Fund

Delhi runs a Labour Welfare Fund, to which employers and employees make small periodic contributions for covered establishments. Register through the Labour Department, and confirm the current rates and due dates with it, since they're revised from time to time.

Local and Sector Registrations in Delhi

Shops and establishments registration

The Delhi Shops and Establishments Act applies to commercial establishments, including a company's office. Register online with the Delhi Labour Department. Points to plan for:

• Each location needs its own registration. A second office or outlet isn't covered by the first, even under the same owner.
• Documents usually include proof of the premises (ownership or a rent agreement), identity proof of the owner and a photograph of the name board.
• The law regulates working hours, weekly offs and holidays, and employers must keep registers such as attendance and wages.
• Banks often ask for the certificate before they open a current account, so get it early.

Trade licence

Depending on the business, an office within the Municipal Corporation of Delhi or the New Delhi Municipal Council area may need a trade or health licence from the local body. Restaurants, shops, workshops and warehouses are the businesses most often asked for one. Fees and rules are local, so ask your local body before you start trading.

Udyam registration

Udyam is a national registration, but it's worth having for a business in Delhi. It's free, online and valid for life. The limits in force from 1 April 2025 are: micro up to ₹2.5 crore investment and ₹10 crore turnover, small up to ₹25 crore and ₹100 crore, and medium up to ₹125 crore and ₹500 crore. It helps with bank credit, government tenders and delayed-payment protection, since buyers who pay micro and small suppliers after 45 days lose the tax deduction for that expense. Register only on the official portal, because paid lookalike sites charge for a free service.

Sector and other registrations

• FSSAI if you make, sell or serve food. State licences are handled by the Commissioner of Food Safety for Delhi.
• An IEC from DGFT if you import or export goods. The government fee is ₹500 and the code is valid for life, with an annual update between April and June.
• A Digital Signature Certificate if you file with the Registrar of Companies, the GST portal, DGFT or government e-procurement portals.
• Commercial use of residential premises: Delhi's master plan restricts commercial use in many residential areas. Using a home as the registered office for correspondence is common, but running a business from it may need permission depending on the area.

Checklists by Type of Business in Delhi

A freelancer or consultant: PAN, a bank account, GST once turnover crosses the services limit, and Udyam if you want MSME benefits. Delhi doesn't levy professional tax, so there's none to set up there.

A small shop or trader: PAN, shops and establishments registration, a trade licence, GST at ₹40 lakh for goods or ₹20 lakh for services, Udyam, and FSSAI if you sell food. Delhi doesn't levy professional tax, so there's none to set up there.

A restaurant, cafe or cloud kitchen: FSSAI, a trade or health licence from your local body, shops and establishments registration, GST once you cross the services limit or earlier if a delivery platform requires it, and the employee registrations, plus professional tax where it applies, as you hire.

An IT or services company: PAN and TAN through incorporation with the Registrar of Companies, NCT of Delhi and Haryana, a Digital Signature Certificate for filings, shops and establishments registration, GST, professional tax where it applies, EPF at 20 employees and ESIC at 10 employees earning within the limit, and the Labour Welfare Fund where it applies.

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

A sensible order

1. Get your PAN, and TAN if you'll deduct tax, or incorporate and receive both.
2. Open a bank account.
3. Register under the shops and establishments law and get any trade licence before you open to customers.
4. Take sector licences such as FSSAI early.
5. Register for GST as you approach the threshold.
6. Register for professional tax, where it applies, within 30 days of becoming liable.
7. Add EPF, ESIC and the Labour Welfare Fund, where they apply, when you hire.
8. Register on Udyam whenever you like, since it's free.

Common mistakes

• Using the wrong GST threshold. In Delhi the limit is ₹40 lakh for goods and ₹20 lakh for services.
• Registering one location and assuming it covers the rest. Each establishment needs its own shops and establishments registration.
• Forgetting professional tax for staff elsewhere. Delhi doesn't levy it, but staff based in states that do are covered there.
• Ignoring the September 2026 EPF change. Employees earning ₹15,001 to ₹25,000 are now covered.
• Relying on old forms and figures. PAN Forms 49A and 49AA and TAN Form 49B are no longer accepted, and many older guides still show the pre-2026 rules.

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