—Guide
Starting a Proprietorship in Telangana: Shops and Establishments, PT and Trade Licence
The registrations a proprietor in Telangana typically needs: Shops and Establishments, Professional Tax, GHMC trade licence, GST at the state threshold, and Udyam.
A proprietorship doesn't need incorporation, but it does need the right registrations — and in Telangana, several of those are state and local. This guide covers what a proprietor in Telangana typically needs.
Shops and Establishments Registration
If you have a shop or office, register under the Telangana Shops and Establishments Act with the Labour Department. It's one of the documents banks commonly accept as proof of your business for a current account.
Professional Tax
Telangana levies Professional Tax. As a proprietor, you enrol and pay PT for yourself, and if you employ staff, register as an employer to deduct and pay PT on their salaries.
Trade Licence
In Hyderabad, a trade licence comes from GHMC; elsewhere, from the local municipality. It's tied to your premises and renewed annually.
GST
Register for GST once your aggregate turnover crosses the threshold. For goods, Telangana applies the ₹20 lakh threshold; for services, it's ₹20 lakh too. Register earlier if you make inter-state supplies of goods or sell through many e-commerce platforms.
Udyam
Udyam registration is free and gives you MSME status, with protection on delayed payments and access to the Telangana Micro and Small Enterprises Facilitation Council.
Sector Licences
- Food businesses: FSSAI registration or licence.
- Pharmacies: drug licence from the state's Drugs Control Administration.
- Importers and exporters: IEC.
Bank Account
With two registrations in the business's name — for example, Shops and Establishments and Udyam, or GST — you can open a current account in your trade name.
A Checklist for Telangana Proprietors
- Register under the Telangana Shops and Establishments Act.
- Enrol for Professional Tax.
- Get a GHMC or municipal trade licence.
- Register for GST when you cross ₹20 lakh, or earlier if required.
- Get Udyam registration.
- Open a current account in the trade name.
Getting Help
Think Filing sets up proprietorships in Telangana with all the state and local registrations they need.