Unified system for license fees provides huge relief for entrepreneurs
Thrissur: A unified system has been implemented in Kerala to determine the license fee to be collected from entrepreneurs in corporations and municipalities. This has resulted in most entrepreneurs receiving huge reductions on license fees.
The new system has also ended variations in fees in different cities. The new system was implemented based on the state government’s recommendation to ease the process of operating business enterprises.
It also ended the situation where license fee collection used to be postponed due to court procedures and opposition from entrepreneurs. Although there would a reduction in revenue for municipalities, there will no longer be dues in license fees due to court procedures.
The entrepreneurs will now be able to provide affidavits to the respective corporation/municipality officials based on their investment capital. Lapses in details provided in the affidavit will attract action from the government.
The new system solves problems in the license fee collection process that had been existing since 1994.
The previous stipulation mandated that municipalities should be divided into three categories and fees must be collected accordingly. However, the new unified system divides license fees into 5 slabs according to investment capital in production and service sectors.
Categories and fees
- Micro Enterprises: Investment capital below Rs 25 lakh in production and Rs 10 lakh in service sector. (Fees Rs 500)
- Mini Enterprises: Investment capital between Rs 25 lakh and Rs 1 crore in production; and between Rs 10 lakh and Rs 25 lakh in service sector. (Fees Rs 1,000)
- Small Enterprises: Investment capital between Rs 1 crore and Rs 5 crore in production; and between Rs 25 lakh and Rs 2 crore in service sector. (Fees Rs 5,000)
- Medium Enterprises: Investment capital between Rs 5 crore and Rs 10 crore in production; and between Rs 2 crore and Rs 5 crore in service sector. (Fees Rs 10,000)
- Large Enterprises: Investment capital above Rs 10 crore in production; and above Rs 5 crore in service sector. (Fees Rs 15,000)