Starting a Proprietorship in Uttar Pradesh: Shops and Establishments, PT and Trade Licence

A proprietorship doesn't need incorporation, but it does need the right registrations — and in Uttar Pradesh, several of those are state and local. This guide covers what a proprietor in Uttar Pradesh typically needs.

Shops and Establishments Registration

Uttar Pradesh's shops and commercial establishments law applies to shops and offices in the state. Register online with the Labour Department. It's one of the documents banks commonly accept as proof of your business for a current account.

Professional Tax

Uttar Pradesh doesn't currently levy Professional Tax, so there's nothing to enrol for. If you have staff or branches in other states, those states' rules apply there.

Trade Licence

Depending on the business, a shop or office in Noida, Lucknow or another municipal or development authority area may need a licence from the local body. It's tied to your premises and usually renewed every year.

GST

Register for GST once your aggregate turnover crosses the threshold. In Uttar Pradesh, the threshold is ₹40 lakh for goods and ₹20 lakh for services. Register earlier if you make inter-state supplies of goods or sell through e-commerce platforms.

Udyam

Udyam registration is free and gives you MSME status, with protection on delayed payments and access to the Uttar Pradesh Micro and Small Enterprises Facilitation Council.

Sector Licences

• Food businesses: FSSAI registration or licence.
• Pharmacies: drug licence from the state drugs control authority.
• 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 Proprietors in Uttar Pradesh

1. Register under the shops and establishments law.
2. Confirm Professional Tax only for staff in other states.
3. Get a trade licence from your local body.
4. Register for GST when you cross ₹40 lakh for goods or ₹20 lakh for services, or earlier if required.
5. Get Udyam registration.
6. Open a current account in the trade name.

Getting Help

Think Filing sets up proprietorships in Uttar Pradesh with all the state and local registrations they need.