Complete guide on how to start super market, legal and tax registrations required, and other compliances

super market registration in chennai

Starting a supermarket in Chennai is a very good business option with a High success rate and profitability, If you have a good amount of investment, and desire to work hard at the initial growth phase, then it is the best option for business. Supermarket registration and setup require on average 50 to 75 lakhs in Chennai with a reasonable variety and quantity of stocks.

Positives of starting a Supermarket in Chennai

  1. The high success rate as major products sold in supermarkets are essential commodities, and buying options cannot be postponed like television, etc.
  2. High profitability provided all kinds of products like cosmetics, stationery, and fancy products are sold
  3. Easy availability of materials at a competitive price, as Chennai is the capital and trading hub of Tamil Nadu.
  4. The presence of the high-income groups in Chennai provides an opportunity to sell Unbranded repacked groceries at a good profit. This benefit may not be available to traditional grocery stores.
  5. A busy lifestyle makes the buyer prefer supermarkets to traditional stores, Supermarkets reduce buyer time for purchase because the customer need not wait for his or her turn to place an order with the storekeeper.

How to register and start a supermarket in Chennai

Basic registration of supermarket business

The supermarket can be started in any form of business, normally supermarket is started like a partnership business as it requires heavy investment and people with a good source of fund prefers proprietorship. Choice of selection between different forms does not give additional advantage for running a business, your customer won’t care about it.


  1. Proprietorship registration
  2. Partnership registration
  3. Private limited company registration

Other legal registration is required to start a supermarket

  1. FSSAI registration – Food Safety State License  ( Food safety guide )
  2. Trade License – To be applied with the corporation
  3. Shop and establishment license if there are 5 or more number of employees
  4. Fire Safety License
  5. GST Registration
  6. TAN number for TDS deduction and TDS return filing

Tips for supermarket startups

  1. Open a current account in a nationalized bank, if not possible open an account with the top 3 leading private banks
  2. Do not overstock, decide the quantity of the stock based on shelf life and supply constraints
  3. Top up stock in the rack during afternoon time
  4. Do not fall prey to new products launched, there will be difficulty in supply from the distributor, returns,        regular supply, frequent change of distributor
  5. Have strict internal control for staff for billing product addition, stock addition, etc. This gives good discipline and does not give staff the opportunity for wrongdoings.
  6. Income tax returns and GST return filing on time with proper compliance
  7. Accept loss in certain products to maintain their availability, in some products profit margins will be very less and you will face loss in damage, etc, we need to maintain these products to boost sales of other products.

Income tax, GST, and other compliances that are required for supermarket

Income tax compliance

Most supermarket requires compulsory audit as their net profit is less than 6 % and there is no option for income tax return filing without regular auditing of accounts as turnover will exceed 1 crore in most cases. So every supermarket is suggested to maintain vouchers, sales bills, purchase bills, details of expenses, etc to prepare proper books of account at year-end. More about important income tax dates

Consider the Top 3 income tax compliance priority

1.  Maintain proper Vouchers, bills, etc for preparing books of accounts
2. Deduct, pay, and file TDS returns properly
3. File income tax returns on time so that it will be helpful for your bankers for overdraft limit renewal.

GST compliance and filing GST monthly returns

GST registration for supermarkets is practically mandatory for availing input tax credits and increasing profitability. Moreover, proper filing of GST returns enables the entailment of credit and gives a sense of relief from the compliance workload. Do not pile up and file GST returns for several months because it will give confusion regarding purchase returns etc, opt for the monthly GST filing option, do not select the quarterly option.

Routine accounting tasks required

Implement a proper billing system for separating, zero-rated sales, exempted products, taxable sale value, sales returns, etc. Book purchase returns, items not delivered but billed properly for arriving exact purchase amount for each month. Input stocks received properly so that data will be ready for submitting stock summary statements to banks, income tax year-end auditing, re-ordering, etc.

Year-end and periodic GST, Income tax compliance, others

  1.   Renew FSSAI license
  2.   Fire safety Renewal
  3.   Renew Legal metrology certificate
  4.   File TDS returns
  5.   File Monthly GST returns
  6.   Audit and file income tax returns.
  7.   Pay advance tax
  8.   Apply for OD Limit renewal, and increase in Overdraft limit even if you need it or not, provided the utilized amount in the OD account shall not be used for business purposes.