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

Choosing a structure and incorporating works the same way across India. But starting a business in Chandigarh also means dealing with local 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 Chandigarh are registered with the Registrar of Companies, Chandigarh. The registered office can be a home, a co-working space, or an office, with the right address proof.

Local Registrations

• Professional Tax: Chandigarh doesn't currently levy professional tax. If the company has staff or offices in Punjab, Punjab's State Development Tax applies to employees there.
• Shops and Establishments: Punjab's shops and commercial establishments law, as extended to Chandigarh, applies to offices in the union territory. Register with the Chandigarh Labour Department.
• Trade licence: Depending on the business, an office within the Municipal Corporation Chandigarh may need a licence from the corporation.
• GST: registration once turnover crosses the threshold, or immediately in compulsory cases. In Chandigarh, 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 Chandigarh, the administration's online clearance system brings many of these together. Industrial land is often allotted through the Chandigarh Administration's Industries Department.

The Startup Ecosystem

Startups in Chandigarh are concentrated around Chandigarh and the tricity with Mohali and Panchkula. Local support includes:

• Incubators in the tricity, including at Punjab Engineering College and Panjab University.
• Angel networks active across the tricity.

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

Choosing a Structure

The choice of structure doesn't depend on the union territory, but local factors can matter: local 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 Chandigarh

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

Getting Help

Think Filing helps founders start businesses in Chandigarh, from incorporation to local registrations.