Starting a Business in Assam: Choosing a Structure and Local Registrations

Choosing a structure and incorporating works the same way across India. But starting a business in Assam also means dealing with state registrations and local authorities, and knowing the local startup ecosystem. This guide covers the local side.

Incorporation and the ROC

Companies and LLPs with a registered office in Assam are registered with the Registrar of Companies, Shillong, which covers most of the north-eastern states. The registered office can be a home, a co-working space, or an office, with the right address proof.

State Registrations

• Professional Tax: Assam levies professional tax on salaries and on businesses, administered by the state Commercial Taxes or Taxation Department. The company needs an enrolment certificate for its own liability, and a registration certificate once it deducts professional tax from employees' salaries. Check the current slabs with the department, as they're revised from time to time.
• Shops and Establishments: The Assam Shops and Establishments Act applies to commercial establishments in the state, including a company's office. Register with the state Labour Department.
• Trade licence: If the office is within Guwahati Municipal Corporation limits, or another municipal area, a trade licence from the local body is usually needed.
• GST: registration once turnover crosses the threshold, or immediately in compulsory cases. In Assam, the threshold is ₹40 lakh for goods and ₹20 lakh for services.

Industrial and Manufacturing Units

Manufacturing and industrial units need further approvals — building permissions, fire safety, pollution control consents, factory licences, and power connections. In Assam, the state's single-window clearance system brings many of these together. Industrial land is often allotted through AIDC (Assam Industrial Development Corporation).

The Startup Ecosystem

Startups in Assam are concentrated around Guwahati. Local support includes:

• Assam Startup – The Nest: the state's incubator for startups.
• The incubation centre at IIT Guwahati.
• North East Venture Fund: a fund set up with SIDBI that invests in startups from the north-eastern states.

Startups can also apply for DPIIT recognition nationally, and explore the state's policies for startups and innovation.

Choosing a Structure

The choice of structure doesn't depend on the state, but local factors can matter: state incentives may be tied to the entity that applies for them, and land allotments may restrict transfers, so it's best to set up the long-term entity before applying for either.

A Checklist for Founders in Assam

1. Choose the structure based on funding plans and risk.
2. Incorporate with the ROC, or set up the proprietorship's registrations.
3. Register for Professional Tax and, where it applies, Shops and Establishments.
4. Get a trade licence for your premises.
5. For manufacturing, apply for approvals through the state's single-window clearance system.
6. Explore local incubators and startup programmes.

Getting Help

Think Filing helps founders start businesses in Assam, from incorporation to state registrations.