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BMC queries for SaaS business

A little background

  • SaaS-based bootstrapping company
  • Located in Mumbai
  • Team of 4. Plan to have 9 members in near future
  • Operating from a rented apartment
  • No client visits are done in our office as entire business is online
  • Currently no HR or admin is handling my operation

My queries are related to BMC legalities

  1. For a SaaS-based company, is it mandatory to have Shop & Establishment License?
  2. Is it illegal to operate from an apartment?
  3. If I take a commercial office in a building, do i still have to comply with S&E Act?
  4. Similarly what if I rent a commercial shop but use it as a office, do i still have to comply with S&E Act?
  5. Can society take an objection to our operation?
  6. What registrations do I have to make to run a legally acknowledged operation?
  7. Anything other laws besides IT & PT, I need to follow?

Would sincerely appreciate your guidance.




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  1. I need inputs too. Members please guide us.

  2. Dhiren, you probably need to apply for professional tax id, and acquire shop and establishment certificate also.

    The property tax component will change with your rental property being used for professional purposes and not residential.

    A CA or a lawyer who works with start ups may be able to guide you better.

    Let me know if you can’t find one, will point you to some.

    Good luck.

  3. Hello Deeti

    Thanks for your guidance.

    I am regularly paying PT & TDS were applicable. However I was informed by a professional that S&EL is not applicable to my kind of business even though I am paying commercial electric bill.

    I will seek someone’s guidance once again. Would ask for your help in case I don’t find someone credible.



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