Statutory Registration in India
GST, Professional Tax, Shops Act, EPF, ESIC, IEC & Udyam
There is no single registration that covers everything. A business may need GST because of turnover, professional tax because it employs people in Maharashtra, EPF once it crosses 20 employees, and an IEC the moment it ships anything across a border. The difficulty is knowing which ones apply, when the obligation starts, and what each commits you to afterwards.
Overview
What Is Statutory Registration — and How Do You Know Which Ones Apply?
A statutory registration is a registration required by law — not one a business chooses to take. When a statute applies to your business, it usually requires you to be on that authority's register before you can operate under it: on the GST register before you charge GST, on the EPF register before you deduct provident fund, on the state's Shops and Establishment record before you run a commercial premises. Registration is how the law recognises your business and how the authority knows you exist.
Which registrations apply depends on three things: what your business does, where it does it, and how big it is. A software consultant working alone in Mumbai needs a very different set from a manufacturer with sixty employees who exports. That is why statutory registration is best approached as a mapping exercise first and a filing exercise second.
Registration Reference
The Main Statutory Registrations — What Triggers Each One
| Registration | What Triggers It | Authority |
|---|---|---|
| GST | Turnover above the threshold, and certain activities regardless of turnover (inter-state supply, e-commerce, reverse charge) | GST Department |
| Professional Tax (PTEC & PTRC) | Operating, and employing staff, in a state that levies it — Maharashtra is one such state; two separate certificates usually required | State Tax Authority |
| Shops & Establishment | Running a commercial establishment, as the state law requires — Maharashtra 2017 Act: intimation for fewer than 10 workers, registration for 10 or more | State Labour Department |
| EPF | Employing 20 or more persons — employees earning up to Rs 15,000/month covered mandatorily; 12% contribution each from employee and employer | EPFO |
| ESIC | Employing 10 or more persons (20 in some states) — covers employees earning up to Rs 21,000/month; employee 0.75%, employer 3.25% | ESIC |
| MSME (Udyam) | Being a micro, small, or medium enterprise — voluntary, free, and based on investment plus turnover. New limits effective from 1 April 2025. | Ministry of MSME |
| Import Export Code (IEC) | Importing or exporting goods or services — one-time ten-digit code linked to PAN; must be updated annually April–June or it is deactivated | DGFT |
Registration Detail
Each Registration — Thresholds, Nuances, and What Is Commonly Missed
GST Registration
Goods: Rs 40 lakh threshold (Rs 20 lakh in special category states). Services: Rs 20 lakh (Rs 10 lakh in special states). Maharashtra is a normal category state. Compulsory regardless of turnover for inter-state supply of goods, e-commerce sellers, reverse charge recipients, and casual taxable persons. Once registered, returns begin whatever the turnover. See our GST registration service.
Professional Tax — PTEC & PTRC
A state levy — applies in Maharashtra, Karnataka, West Bengal, and others. Two separate certificates: PTEC (professional tax the business/professional pays on its own account) and PTRC (tax deducted from employees' salaries and paid to the state). An employer with staff generally needs both — taking only the PTRC and missing the PTEC is the most common gap. See our professional tax registration service.
Shops & Establishment
Every state has its own law. Under the Maharashtra Shops and Establishments Act 2017: an establishment with fewer than 10 workers files an intimation of commencement (not a registration certificate); with 10 or more workers, a registration certificate is required. Many small businesses either take the wrong one or assume nothing is needed at all. See our Shop Act registration service.
EPF & ESIC — Triggered by Headcount
EPF: mandatory at 20 or more employees; 12% contribution from employee and employer on wages up to Rs 15,000/month. ESIC: mandatory at 10 or more (20 in some states); covers wages up to Rs 21,000/month; employee 0.75%, employer 3.25%. A business below the threshold can register voluntarily. Both bring monthly obligations from the day they start — we handle them alongside payroll management.
MSME / Udyam Registration
Voluntary, free, and worth taking. Classified on a composite test of investment in plant/machinery/equipment and annual turnover — both criteria must be met. New limits effective 1 April 2025: micro up to Rs 2.5 crore / Rs 10 crore; small up to Rs 25 crore / Rs 100 crore; medium up to Rs 125 crore / Rs 500 crore. Exports excluded from turnover. Many businesses that had outgrown their category now fall back within the new limits. See our Udyam registration service.
Import Export Code (IEC)
Required by any business importing or exporting goods or services — issued once by the DGFT as a ten-digit PAN-linked code. The catch: it must be updated and confirmed every year between April and June, even where nothing at all has changed. An IEC not updated in that window is deactivated — stopping a consignment at exactly the wrong moment. See our Import Export Code service.
Post-Registration Obligations
Registration Is the Start, Not the End
Every registration brings its own ongoing compliance — and this is the part businesses underestimate. Taking a registration and then ignoring the returns it requires creates the exact default the registration was meant to avoid:
| Registration | What It Commits You To |
|---|---|
| GST | Monthly or quarterly GSTR-1 and GSTR-3B returns, an annual GSTR-9 return, and tax paid by due dates |
| PTRC & PTEC | Periodic returns and payment of tax deducted from employees, plus the annual professional tax of the entity |
| Shops & Establishment | Renewal as the state requires, display of the registration certificate, and maintenance of attendance and leave records |
| EPF | Monthly contributions by the 15th of each month and the electronic ECR return; PF passbook management for employees |
| ESIC | Monthly contributions by the 15th and the half-yearly return; ESIC medical benefit maintenance for covered employees |
| MSME (Udyam) | Details kept current — the Udyam classification is driven by your ITR and GST data, so filing accuracy keeps the certificate accurate |
| Import Export Code | Annual update between April and June on the DGFT portal — every year, even where nothing has changed. No update = deactivation. |
Worked Example
A Mumbai Private Limited Company With 12 Employees on an E-Commerce Platform
Suppose you have set up a Private Limited Company in Mumbai, taken an office, hired twelve people, and started selling through an e-commerce platform. Here is how the registrations fall:
GST is required immediately — selling through an e-commerce operator makes registration compulsory regardless of turnover, so the Rs 40 lakh threshold is irrelevant. The moment the first sale goes through the platform, the obligation exists.
Professional tax — both certificates — Maharashtra levies professional tax, so the company needs a PTEC for itself and a PTRC to deduct from its twelve employees. Taking only one is the most common professional tax error.
Shops and Establishment registration — with ten or more workers, the office needs a registration certificate (not merely an intimation). Filing an intimation when a certificate is required is a compliance gap.
ESIC applies; EPF does not yet — at twelve employees, the ESIC threshold (ten) is crossed, so ESIC registration is mandatory. EPF only becomes mandatory at twenty employees, though it can be taken voluntarily before that.
Udyam registration is worth taking — the company will comfortably be within the micro or small limits at the new thresholds, the registration is free, and the MSME benefits (priority lending, timely payment protection) are real from day one.
Our Process
How We Handle Statutory Registration Engagements
We map, obtain, and then maintain the registrations your business needs — so nothing is missed and nothing unnecessary is taken:
Applicability Mapping
Documentation Assembly
Application Filing
Follow-Up & Query Response
Certificate Handover & Compliance Briefing
Ongoing Returns, Contributions & Renewals
Consequences of Non-Registration
What Happens If a Required Registration Is Missed?
Not registering does not delay the obligation — it just means you are carrying it without a registration. The consequences are practical and accumulate over time:
The liability still runs: GST that should have been charged and paid remains payable with interest and penalty, even without a registration. Penalties apply for operating without a required registration under each relevant law, and repeated default increases them. Input credit is lost for the unregistered period — a business that should have been GST-registered cannot claim credit on the tax it paid on its own purchases during that period. Business is blocked: banks, e-commerce platforms, government tenders, and larger customers routinely ask for registration proof before onboarding. Benefits are forgone: an unregistered MSME does not get priority lending, scheme access, or the timely payment protection it was entitled to under the MSMED Act.
Related Services
Individual Registration Services We Handle
Each registration below is a standalone service within our registrations practice — we handle each one end to end:
FAQ
Frequently Asked Questions — Statutory Registration
What is statutory registration?
Which registrations are considered statutory registrations?
When does GST registration become compulsory?
At how many employees do EPF and ESIC apply?
What are the current MSME classification limits?
Does an Import Export Code need to be renewed each year?
Is professional tax registration the same as GST registration?
What happens if a required registration is missed?
Get your registrations right — starting with the ones that actually apply to you.
N D Savla & Associates maps, obtains, and maintains the statutory registrations your business needs — from Mumbai and across India.
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