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

A business in Telangana deals with a mix of national and state registrations. PAN, TAN, GST, EPF, ESIC and Udyam work the same way across India, while professional tax, Shops and Establishments registration and municipal licences are set by the state and local bodies. This guide explains what a new business in Hyderabad, Warangal or anywhere else in Telangana needs, and the details that are specific to the state.

Tax Registrations in Telangana

PAN and TAN

PAN and TAN are national registrations issued by the Income Tax Department, so there is nothing Telangana-specific 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 Telangana deals with the Registrar of Companies in Hyderabad through the MCA portal, and its PAN and TAN are generated with the incorporation. If you are a proprietor or a firm that will deduct TDS, apply for TAN before your first deduction. Our separate guide on PAN and TAN covers the forms, documents and fees.

GST in Telangana

GST registration is filed on the national portal, and your GSTIN will start with the state code 36. In Telangana you must register once your aggregate turnover crosses ₹20 lakh, for goods and services alike. Most other states give goods suppliers a ₹40 lakh limit, but Telangana is one of the states with the lower one. You must apply within 30 days of crossing the limit, and some businesses must register from the first rupee, such as those making inter-state supplies of taxable goods. GST in the state is administered jointly by the Centre and the Telangana Commercial Taxes Department. Our separate guides cover registration and returns in detail.

Professional tax in Telangana

Professional tax is a state levy under the Telangana Tax on Professions, Trades, Callings and Employments Act, 1987, run by the Commercial Taxes Department through its portal at tgct.gov.in. Two registrations exist, and a company usually needs both:

PTRC (Professional Tax Registration Certificate) for employers, who deduct tax from employees' salaries and pay it over
PTEC (Professional Tax Enrolment Certificate) for businesses and self-employed people, who pay tax on their own account

Apply within 30 days of becoming liable through the e-Registration option on the portal. You receive a PTIN that you use for all future logins and payments. Employers enrol in Form I, businesses and the self-employed in Form II, and employers file a monthly return in Form V.

Salary slabs for FY 2026-27, the same for men and women:

Salary up to ₹15,000 a month: nil
₹15,001 to ₹20,000 a month: ₹150 a month
Above ₹20,000 a month: ₹200 a month, so at most ₹2,400 a year

Other categories:

Companies, LLPs and firms pay ₹2,500 a year on their own enrolment, whatever their headcount
Directors drawing remuneration pay ₹2,500 a year, covered under the company's registration
Each partner drawing remuneration pays ₹1,250 a year
Traders and dealers pay nothing below ₹10 lakh of turnover, ₹1,250 between ₹10 lakh and ₹50 lakh, and ₹2,500 above ₹50 lakh
Self-employed professionals such as chartered accountants, doctors and lawyers are exempt for their first five years of standing, then pay ₹2,500 a year

Due dates: employers pay and file by the 10th of the following month, and PTEC is generally paid by 30 June each year. Late payment can attract a penalty of 25% to 50% of the tax due. Exemptions apply to senior citizens above 65, persons with disabilities and a few other groups. Slabs can be revised by notification, so confirm the current figures on the portal.

Employment Registrations in Telangana

Once you hire staff, several registrations come into play. 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, 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 government's Shram Suvidha portal, and each employee gets a Universal Account Number.

A significant change took effect on 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 were not members before are now covered, and pension contributions are computed on wages up to ₹25,000. This matters in Telangana, where many salaried staff in Hyderabad's IT and services businesses fall in this band. Existing members stay members. Update your payroll and enrol newly covered employees, and note that September's contributions are calculated in two parts around the change date and are due by 15 October 2026.

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 that employ 10 or more people. The September 2026 EPF change did not alter the ESIC limit. 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 handle Telangana through their offices in Hyderabad and other districts. Your establishment is allocated to the office that covers your area, so check the jurisdiction shown on the portals when you register.

Telangana Labour Welfare Fund

Telangana has its own Labour Welfare Fund under the Telangana Labour Welfare Fund Act, 1987. It applies to factories, motor transport undertakings and establishments covered by the state's Shops and Establishments law. The contributions are small and annual: payroll providers list ₹2 from each employee and ₹5 from the employer per year, deducted by 31 December and paid by 31 January the following year. Registration is through the Labour Department portal. Confirm the current rates and dates with the Labour Department, since the board revises them from time to time.

Do not forget professional tax

Employers with staff above the ₹15,000 salary line also need the PTRC described above, and must deduct and pay it by the 10th of every month.

Local and Sector Registrations in Telangana

Shops and Establishments registration

The Telangana Shops and Establishments Act, 1988 applies to commercial establishments across the state, including shops, offices, IT and ITES companies, hotels, restaurants and theatres. It is administered by the state Labour Department, and applications are made online through its portal. Points to plan for:

Each location needs its own registration. A second office or outlet is not covered by your first registration, even under the same owner.
Documents typically include proof of the premises (ownership or a rent agreement), identity proof of the owner, and a photograph of your name board, which is expected to carry Telugu.
Working conditions are regulated. The Act covers working hours, weekly off and holidays, and employers must keep prescribed registers such as attendance and wages.
Non-registration is penalised. One compliance guide reports fines of up to ₹10,000 for a first offence and higher penalties for repeat offences, so register before you open.
Banks often ask for it. Many banks want the certificate before they open a current account.

The registration is kept up to date through the Labour Department's online services, including the annual fee payment, so check the portal for what applies to you.

Municipal trade licence

Businesses such as restaurants, shops, workshops and warehouses are generally expected to hold a trade or health trade licence from their local body. In Hyderabad that is the Greater Hyderabad Municipal Corporation, and elsewhere in the state it is the local municipality or panchayat. Fees and rules are local, so ask your body before you start trading.

Udyam registration

Udyam is a national registration, but it is worth having for a Telangana business. It is 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. The state licensing authority is the Commissioner of Food Safety, Telangana.
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 the Telangana eProcurement portal.
TS-iPASS, the state's single-window clearance system, which is mainly aimed at industrial and larger investment projects and brings several approvals together.

Checklists by Type of Business in Telangana

A freelancer or consultant in Hyderabad: PAN, a bank account, GST once turnover crosses ₹20 lakh, and Udyam if you want MSME benefits. Self-employed professionals are exempt from professional tax for their first five years of standing, after which they pay ₹2,500 a year on a PTEC.

A small shop or trader: PAN, Shops and Establishments registration, a municipal trade licence, GST at ₹20 lakh, Udyam, FSSAI if you sell food, and a PTEC if your turnover is above ₹10 lakh. Add a PTRC once you employ anyone earning above ₹15,000 a month.

A restaurant, cafe or cloud kitchen: FSSAI, a health trade licence from your local body, Shops and Establishments registration, GST once you cross ₹20 lakh or earlier if a delivery platform requires it, and the professional tax and employee registrations as you hire.

An IT or services company: PAN and TAN through incorporation with the Registrar of Companies in Hyderabad, a Digital Signature Certificate for filings, Shops and Establishments registration, GST, a PTEC for the company and a PTRC for payroll, EPF at 20 employees and ESIC at 10 employees earning within the limit, and the Telangana Labour Welfare Fund.

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

Get your PAN, and TAN if you will deduct tax, or incorporate and receive both.
Open a bank account.
Register under the Shops and Establishments Act and get any trade licence before you open to customers.
Take sector licences such as FSSAI early.
Register for GST as you near ₹20 lakh of turnover.
Register for professional tax within 30 days of becoming liable.
Add EPF, ESIC and the Labour Welfare Fund when you hire.
Register on Udyam whenever you like, since it is free.

Common mistakes in Telangana

Using the ₹40 lakh GST limit for goods. In Telangana it is ₹20 lakh.
Registering one location and assuming it covers the rest. Each establishment needs its own Shops and Establishments registration.
Forgetting the 10th. Professional tax for the previous month is due by the 10th, and Telangana penalties are 25% to 50% of the tax due.
Enrolling a company for PTRC but not PTEC. A company needs both.
Ignoring the September 2026 EPF change. Employees earning ₹15,001 to ₹25,000 are now covered.
Skipping the Telangana Labour Welfare Fund because the amounts are small. It is still a statutory contribution.
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.