Published by: PEAK Business Consultancy Services | Website: www.ourtaxpartner.com
Table of Contents
- Introduction
- 1. Trade License from Municipality/Panchayat
- 2. Shops and Establishments Registration
- 3. GST Registration
- 4. FSSAI License (For Food-Related Shops)
- 5. PAN and TAN Registration
- 6. Professional Tax Registration
- 7. Fire and Safety NOC
- 8. Pollution Control Board Consent (if applicable)
- 9. ESI & EPF Registration (If Employing Staff)
- 10. Local Signage and Advertisement License
- Conclusion
Introduction
Opening a shop in Kerala involves more than just setting up inventory and starting sales. To run legally and avoid penalties, entrepreneurs must secure various licenses from local and state authorities. Each type of shop – whether a grocery store, boutique, electronics outlet, or bakery – requires specific registrations and licenses based on operations. This guide details the top 10 licenses and registrations you must obtain before opening your shop in Kerala.
1. Trade License from Municipality/Panchayat
This is a primary license every shop must obtain from the local municipal corporation or panchayat. It permits you to carry out trade or business in a specified locality.
- Issued by: Local Municipality or Panchayat
- Validity: Usually 1 year (renewable annually)
- Documents Needed: ID proof, address proof, rental agreement or ownership proof, NOC from building owner
- Fee: Based on business type and area size
2. Shops and Establishments Registration
Mandatory under the Kerala Shops and Commercial Establishments Act, this registration governs working hours, employee rights, leave, and workplace conditions.
- Applicable To: All shops and commercial businesses
- Issued by: Labour Department of Kerala
- Timeline: Within 30 days of opening the shop
- Online Portal: Kerala Labour Department Portal
3. GST Registration
If your annual turnover exceeds ₹20 lakhs (₹10 lakhs in special category states), GST registration is mandatory. This allows you to collect tax and issue valid invoices.
- Applicable To: Retailers, wholesalers, and service providers
- Apply at: www.gst.gov.in
- Documents: PAN, Aadhaar, shop address proof, bank account, photo
4. FSSAI License (For Food-Related Shops)
Mandatory for shops selling food items, including bakeries, tea shops, grocery stores, and snacks outlets. It ensures food safety standards are met.
- Types: Basic, State, or Central License (based on turnover)
- Validity: 1 to 5 years
- Apply at: FSSAI FoSCoS Portal
5. PAN and TAN Registration
PAN (Permanent Account Number) is required for tax purposes. TAN (Tax Deduction and Collection Account Number) is needed if you deduct TDS for employees or vendors.
- Apply at: Income Tax Portal
- PAN is mandatory for opening a bank account, filing returns, and applying for GST.
6. Professional Tax Registration
Professional Tax is levied by the state government on professionals, traders, and employers. If you have employees, this registration is mandatory.
- Applicable To: Employers and self-employed persons
- Registration Authority: Commercial Taxes Department of Kerala
- More info at: LSG Kerala Tax Portal
7. Fire and Safety NOC
Shops in high-rise buildings or commercial complexes may require a No Objection Certificate (NOC) from the Kerala Fire and Rescue Department to ensure safety compliance.
- Applicable To: Shops exceeding specific area thresholds or handling flammable items
- Documents: Layout, fire safety plan, building permit, occupancy certificate
8. Pollution Control Board Consent (if applicable)
If your shop generates waste (chemical, plastic, oil, etc.), you need clearance from the Kerala State Pollution Control Board (KSPCB).
- Applicable To: Paint shops, battery/e-waste sellers, or repair units
- Apply at: KSPCB Official Site
- Type: Consent to Establish (CTE) and Consent to Operate (CTO)
9. ESI & EPF Registration (If Employing Staff)
If your shop employs more than 10 employees (ESI) or 20 employees (EPF), you must register for employee welfare schemes.
- ESI Portal: www.esic.gov.in
- EPF Portal: www.epfindia.gov.in
- More assistance: EPF Registration Help
10. Local Signage and Advertisement License
If you’re putting up name boards, illuminated signs, or wall paintings to advertise your shop, you must obtain permission from the local authority.
- Issued by: Municipality or Panchayat
- Fee: Based on size, content, and location of advertisement
Conclusion
Starting a shop in Kerala requires adherence to multiple legal and regulatory requirements. Securing the correct licenses not only keeps your business compliant but also builds trust among customers and suppliers. Always verify your business category, location-specific rules, and applicable taxes and permits before launching operations.
Need help registering and managing licenses for your shop? Contact PEAK Business Consultancy Services for expert support in registration, tax compliance, labor law adherence, and business setup solutions across Kerala.
