These businesses, however, will not be allowed to reopen in Chennai and other containment zones.
However, no air-conditioning is allowed in these shops which can be open from 7 am to 7 pm.
The state government said salons and beauty parlours must ensure everyone wears masks, social distancing is maintained and their premises are disinfected at least five times a day.
No worker or customer who shows symptoms of COVID-19 should be allowed inside. Also, no resident living in containment zones will be allowed to work in the salons.
Chief Minister Edappadi Palaniswami in a statement earlier this week had said he had given orders for reopening salons for men in rural areas after sympathetically considering demands from barbers.
Tamil Nadu has the second-highest number of cases of coronavirus in India.