Reviewed 16 October 2026. Requirements depend on the business activity, premises, workforce, turnover and legal form. Use this as a screening checklist and confirm the current rule and portal instructions before filing.
Start with the facts about your business
Before applying for registrations, record the legal entity, all business locations, what you sell or do, whether you handle food or regulated products, whether the premises are a factory or hazardous/assembly occupancy, and the number and wage levels of employees. These facts determine which central, Kerala and local registrations apply. A checklist based only on the number of employees or the word “startup” can miss important exceptions.
1. Choose and establish the legal entity
Compare a proprietorship, partnership, LLP, one-person company or private limited company based on liability, ownership, funding and filing burden. Incorporate companies and LLPs through the Ministry of Corporate Affairs. A sole proprietorship has no separate incorporation under a single general central statute, but may need tax, local-body, sectoral and employment registrations. PAN and other identity details must match the chosen entity and application.
2. Check Kerala establishment and local-body requirements
The Kerala Labour Commissionerate currently says shops and commercial establishments must register under the Kerala Shops and Commercial Establishments Act and describes an exception using the now-repealed Factories Act terminology. The Factories Act was repealed and replaced nationally by the OSH Code from 21 November 2025, while the Kerala service page still uses that legacy term; verify the current exception with the portal and applicable Kerala rules. The service list gives an initial application period of 60 days after commencement and lists the local-body licence or lease, employee list and employer identity proof. It shows a one-day service target and describes renewal as annual from November with “auto renewal.” Follow current portal instructions and the fee schedule for your application. Check the Labour Commissionerate’s live service list and current fee amendment.
Also check the relevant municipality, corporation or panchayat for trade, building-use and local licence requirements. Their applicability and fees depend on the premises and activity; one state-wide checklist cannot safely assign the same licence to every business.
3. Assess GST liability before making taxable supplies
Kerala’s general registration thresholds are not one number for every business. In broad terms, taxable services and mixed supplies commonly use a ₹20 lakh aggregate-turnover threshold, while a person exclusively supplying eligible goods may qualify for a threshold up to ₹40 lakh under the applicable notification. The goods threshold has conditions and exclusions. Aggregate turnover is calculated on an all-India PAN basis, and section 24 or other notifications can require registration below a threshold. Check the facts and current law with the GST portal or a tax professional before relying on an exemption.
Voluntary registration is a choice with consequences: a registered taxpayer must charge and report tax as applicable and meet return and record obligations. Do not register solely because a customer asks for a GSTIN without first considering the resulting duties.
4. Screen employment and payroll registrations
- EPF: Check coverage under the current Social Security Code, EPF Scheme and EPFO instructions, including the establishment threshold and transition provisions. The wage-ceiling revision to ₹25,000 took effect on 17 September 2026; membership and contribution treatment can depend on the employee’s prior membership, wages and applicable scheme rules. Use the current EPFO employer portal and our employer guide.
- ESI: The Ministry’s current Labour Code FAQ says the notified ₹21,000 monthly wage ceiling continues to apply while rules are finalized. Coverage depends on the establishment, location, employee count and wage conditions; verify it with ESIC.
- Professional Tax: Kerala PT is administered by local self-government institutions. Confirm whether the employer and each employee are liable, the applicable half-yearly slab and the local body’s payment and filing route.
- Welfare funds: Do not treat the Kerala Labour Welfare Fund and the Shops and Commercial Establishments Workers Welfare Fund as the same scheme. The Labour Welfare Fund Board publishes its own coverage and half-yearly contribution rules; the Shops Board has separate membership and contribution information. Confirm which board, if any, applies to the establishment and worker before deducting or paying a contribution.
5. Add licences for regulated activities or premises
- Food: Food businesses need the appropriate FSSAI registration or licence. The category depends on the kind of food activity and its capacity or turnover; use FoSCoS eligibility rather than assuming every food business receives the same licence.
- Fire clearance: A Fire and Rescue Services clearance is not a blanket requirement for every commercial establishment. Kerala’s portal applies building-rule criteria based on matters such as height, area and occupancy, with specified exceptions. Check the Kerala Fire NOC portal for the actual building and use.
- Factories and higher-risk work: Assess the workplace under the Occupational Safety, Health and Working Conditions Code and current Kerala rules. The Factories Act was repealed and replaced by the OSH Code from 21 November 2025; do not use its old headcount rules as a substitute for checking the current definition, licensing and safety requirements.
- Other sectors: Healthcare, accommodation, transport, alcohol, construction, environmental activity and online commerce may have separate permissions. Identify these from the activity and premises, then confirm with the responsible department.
6. Set up payroll records and recurring compliance
Build a calendar only after coverage is established. Track payroll, attendance, wage and leave records, contributions, local taxes, licence renewals and returns required for this particular entity. Use the forms and retention periods prescribed by the current central or Kerala rules; legacy Shop Act forms and old portal screenshots may no longer describe the current process.
Timelines and fees
There is no reliable single timeline or total cost for starting every Kerala business. Government fees, professional charges, document checks, biometric verification and premises approvals vary by application. The Labour Commissionerate lists current service times and fees for its own services; check each other regulator’s official portal for its current schedule and status.
For a tailored review, contact GHR Consultancy with the entity type, district, business activity, premises details and expected workforce. We can map which registrations and recurring filings need to be checked for your case.
Official sources
- Kerala Labour Commissionerate service list
- Ministry of Labour and Employment: Labour Codes FAQ
- EPFO employer portal and ESIC
- GST portal and FSSAI FoSCoS
- Kerala Fire and Rescue Services NOC portal
- Kerala Labour Welfare Fund Board and Kerala Shops and Commercial Establishments Workers Welfare Fund Board