Most businesses in Maharashtra do not become employers on a particular day. They hire one person, then another, and somewhere along the way they cross a line that triggers a registration nobody was watching for. The registrations are not difficult. Knowing which one applies at which headcount is the part that catches people.
In Maharashtra, some employer obligations begin the day you start a business, others at your first salaried employee, and the rest at 10 and 20 employees. The Shop Act applies from commencement, PTEC and TAN from the start of the business and first salary respectively, ESIC at 10 employees and EPF at 20.
Not sure which registrations you already need? WhatsApp us your headcount and start date and we will tell you what is outstanding.
Quick Summary — What Triggers What
| Registration | Trigger | What it covers |
| Shop Act intimation | Business commences, under 10 workers | Form F intimation to the Facilitator |
| Shop Act registration | 10 or more workers | Full registration, certificate and LIN |
| PTEC | Business commences | Professional tax on the business itself |
| TAN | First salary or other TDS liability | Required to deduct and deposit TDS |
| PTRC | First salaried employee above the state limit | PT deducted from employee salaries |
| ESIC | 10 or more employees | Employees earning gross up to Rs 21,000 |
| EPFO | 20 or more employees | All eligible employees |
Stage One: Before You Hire Anyone
Two obligations attach to the business existing, not to it having staff.
Shop Act. Under the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017, an establishment employing fewer than ten workers files an online intimation of having commenced business, in Form F, with the Facilitator in whose jurisdiction it sits. That is the whole obligation at that size — the substantive provisions of the Act do not otherwise apply. Applications are filed on the MAITRI portal at maitri.mahaonline.gov.in.
PTEC. Professional Tax Enrolment Certificate is professional tax on the business and its proprietor, partners or directors. It is not connected to employees at all, and it is the registration most commonly missed by businesses that have not hired yet.
Stage Two: Your First Salaried Employee
Headcount of one is enough to trigger two things.
TAN. You cannot deduct or deposit TDS without a Tax Deduction Account Number. Salary TDS under Section 192 applies from the first payslip where the employee’s income is taxable — there is no threshold headcount below which it can be skipped. Deducting without a TAN, or not deducting at all, both create problems.
PTRC. Professional Tax Registration Certificate covers professional tax deducted from employee salaries and paid over to the state. PTEC and PTRC are separate registrations with separate obligations, and a business with employees generally needs both. Payments and returns run through the MAHAGST portal at mahagst.gov.in.
Stage Three: Ten Employees
Ten is the threshold that changes the most at once.
Shop Act moves from intimation to registration. Once the number of workers reaches ten, all provisions of the 2017 Act apply and full registration under Section 6 becomes mandatory. You receive a registration certificate and a Labour Identification Number, and the certificate can be valid for up to ten years. This is not a renewal of your intimation — it is a different thing, and the intimation does not convert on its own.
Registration also brings the substantive obligations with it: working hours capped at nine a day and 48 a week, overtime rules, weekly holidays, identity cards, registers, and an annual return.
ESIC applies. Employees earning gross wages up to Rs 21,000 a month are covered, at 0.75% from the employee and 3.25% from the employer. Registration and monthly contributions both begin.
Stage Four: Twenty Employees
EPF applies once the establishment has 20 or more employees — 12% from the employee and 12% from the employer, on wages up to the Rs 15,000 ceiling.
This is also the point where salary structure stops being an internal preference and starts having a cost. Under the Code on Social Security, 2020, basic pay must be at least half of total remuneration. A structure that is light on basic and heavy on allowances raises your PF and ESIC base when it is assessed, and restructuring afterwards is awkward because employees read it as a cut.
Where Businesses Actually Get Caught
Counting the wrong people. Thresholds look at workers engaged, not just those on formal payroll. A business running eight employees and four long-term contractors doing the same work as staff should look carefully at where it actually sits.
Crossing a threshold and not noticing. There is no notification when you hire your tenth person. The obligation starts, and it starts backdated to when you crossed. Whoever runs payroll should be watching headcount against thresholds every month.
Assuming PTEC covers PTRC. They are separate registrations covering different things. Having one does not satisfy the other.
Registering and then not filing. Every registration carries a recurring return. Registration is the easy part; the monthly and annual filings are where businesses fall behind.
Dropping below a threshold. Headcount falling back under ten or twenty does not automatically end your obligations. Coverage generally continues, and exit is a separate process.
Frequently Asked Questions
We have three employees. Do we need Shop Act registration? Not full registration. An establishment with fewer than ten workers files an intimation of commencement in Form F. Full registration becomes mandatory once you reach ten.
What is the difference between PTEC and PTRC? PTEC is professional tax on the business and its proprietor, partners or directors. PTRC covers professional tax deducted from employee salaries. A business with employees generally needs both.
We have twelve employees. Does EPF apply? EPF applies at 20 or more. ESIC applies at 10 or more. Twelve employees means ESIC applies but EPF does not yet.
Do contractors count towards the thresholds? It depends on the substance of the engagement rather than the label. Someone working fixed hours, exclusively, under your direction may be counted regardless of the contract. Take advice if you are close to a threshold.
How long is Shop Act registration valid? Under the 2017 Act the certificate can be valid for a period requested by the applicant, up to a maximum of ten years — considerably longer than the older regime allowed.
We missed a registration. What happens? Register now rather than waiting, since the obligation runs from when the threshold was crossed and does not improve with time. Late registration is normal and recoverable; unregistered operation is what creates the larger exposure.
References
- Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 — Sections 6 and 7
- Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975
- Employees’ State Insurance Act, 1948 — coverage threshold and wage ceiling
- Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 — coverage threshold
- Income Tax Act, 1961 — Section 192 and TAN requirements
- Code on Social Security, 2020 — definition of wages
⚠️ Thresholds, rates, slabs and forms change through notification, and professional tax varies by state. Confirm your position against the official portals or with your advisor before acting on any figure here.
Related Reading: Shop Act Registration on MAITRI Portal · MAHAGST Portal: PTEC and PTRC Rates and Due Dates · Shop Act 2026: The OSH Code Clarification · Salary Structure Design: How to Split CTC Correctly
Call or WhatsApp: +91 7448200422 Email: info@taxkitab.com We handle registrations and monthly filings under Payroll & HR Compliance. If you would rather learn to run payroll yourself, our Academy covers PF, ESIC, TDS and the labour codes end to end.
Related Reading
- New Labour Codes 2025: What Actually Changes for Employers
- PF on Allowances
- Salary Structure Design: How to Split CTC the Right Way
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