Event management is one of the fastest-growing industries in Mumbai, the entertainment and business capital of India. From corporate conferences and weddings to product launches and large-scale concerts, event companies play a pivotal role in making occasions successful. However, behind the glamour and creativity lies a crucial responsibility — legal and tax compliance.
For any event management company in Mumbai, compliance with government regulations ensures smooth operations, client trust, and protection from legal hurdles. Let’s dive into the key compliances every event management business must follow.
Before starting operations, your event company must be legally registered. Options include:
Sole Proprietorship – Suitable for freelancers or small-scale planners.
Partnership Firm/LLP – Preferred for companies with multiple partners.
Private Limited Company – Recommended for large event management firms seeking scalability, funding, and credibility.
Each structure comes with its own compliance obligations like ROC filings, board resolutions, and annual returns.
Event management falls under the service sector, making GST registration mandatory once turnover exceeds Rs. 20 lakhs (Rs. 40 lakhs for goods supply).
GST is charged at 18% on event services.
Companies must issue GST-compliant invoices to clients.
Regular GST return filing (GSTR-1, GSTR-3B, and annual return) is mandatory.
Input Tax Credit (ITC) can be claimed on expenses like venue rentals, equipment, catering, and logistics.
In Maharashtra, Professional Tax is applicable for both employers and employees. Event companies must register under:
PTEC (Professional Tax Enrollment Certificate): For the company itself.
PTRC (Professional Tax Registration Certificate): For deducting and depositing professional tax from employees’ salaries.
Event management firms must follow income tax filing norms:
Proprietors file ITR-3 or ITR-4.
Partnerships/LLPs file ITR-5.
Private Limited Companies file ITR-6.
TDS (Tax Deducted at Source) must be deducted on vendor payments such as artists, caterers, and venue owners.
Since event companies often hire staff, freelancers, and on-ground crew, labor law compliance is essential. This includes:
EPF Registration – Mandatory if 20 or more employees are hired.
ESI Registration – Required for firms with employees earning below Rs. 21,000 per month.
Shops & Establishment License (Maharashtra) – Required for all commercial establishments, including event firms.
Event companies frequently use music, logos, graphics, and branding. To avoid infringement issues:
Obtain proper licenses for playing copyrighted music (IPRS/PPL license).
Register your company’s own brand name or logo as a Trademark.
Sign NDAs and copyright agreements with creative vendors.
Depending on the type of event, several permissions may be needed:
Police permission for large gatherings.
Fire safety clearance for indoor and outdoor venues.
Liquor license if alcohol is served.
Municipal permissions for loudspeakers, banners, and public advertising.
FSSAI registration if the company directly handles catering services.
Maintaining transparent accounts is essential for tax audits, client billing, and vendor payments. Event companies must:
Maintain books of accounts (digital or physical).
Track GST input/output invoices.
Reconcile TDS deducted/collected.
Maintain payroll records of employees.
Given the risks involved in large events, event liability insurance is highly recommended. It protects against:
Accidents at the venue.
Damage to property or equipment.
Cancellation of events due to unforeseen reasons.
Depending on the chosen business structure, event management companies must comply with:
ROC Annual Filings (for LLPs/Companies).
Annual GST Return Filing.
Tax Audit (if turnover exceeds prescribed limit).
Renewal of licenses and registrations.
Avoid Penalties: Non-compliance can lead to heavy fines, cancellation of licenses, or event disruptions.
Client Trust: Corporate clients prefer event partners with proper licenses and tax registrations.
Smooth Operations: Timely permits and clearances ensure hassle-free event execution.
Business Growth: A compliant company can easily bid for larger projects and attract investors.
For an event management company in Mumbai, creativity and compliance go hand in hand. While creativity ensures client satisfaction, compliance ensures sustainability and legal security. From GST and labor laws to municipal permissions and IP rights, following these regulations is the key to building a professional and trustworthy event brand.
If you’re starting or already running an event management business, ensure all compliances are in place. At TAXAJ, we specialize in helping event companies with registrations, GST filing, labor law compliance, and ongoing advisory support.