Starting something is always the first step in completing something. Although starting a business in India is not quite a fairy tale, the nation has made major strides in recent years, making it considerably simpler for entrepreneurs to do so. The many licences and registrations that are needed in India for various business types will be covered in this section. No matter how big or small your business is, you must secure a permit. Like in any other nation, businesses in India must apply for and renew a variety of business licences and permissions. To learn more about the various business licence registration categories, continue reading.
However, getting a licence can be challenging and complicated, particularly for small businesses with little resources. Getting a business licence in India depends on a number of variables, including the business’s size, kind, industry, and jurisdiction. In this piece, we take a quick look at some of the most prevalent and straightforward business licences and registrations.
What Does an Indian Business Licence Entail?
When a business licence is bought, the buyer is given the legal right to launch and operate a specific kind of business within the license’s legal area. It is a type of business permit granted by the government to a corporation. You should ascertain whether or not you need a licence before starting a business because some types of businesses do not have this necessity.
If you don’t have a licence, though, you could face penalties or even be compelled to shut down your business. Some companies need licences from numerous jurisdictions, whereas others don’t. The kind of licence you need and where you may receive it depends depend on where your firm is located.
Registration Of Business Licences In India
There are numerous types of business licences available in India. The most typical ones, however, fall into the following groups:
The majority of businesses in India are established as sole proprietorships or partnership firms, which do not need to be formally registered with the government on a national basis. Limited liability partnerships and company registration procedures are regulated by the Corporate Affairs division. Businesses that generate more than Rs. 20 lakhs in annual revenue should register as a corporation or a limited liability partnership. After registering as an LLP or corporation, the company will have a legal existence and the investors will be shielded from financial damages. As a result, the company would be simpler to transfer, and the company would survive. In light of this, seeking professional advice and forming an LLC or corporation are crucial actions to take when starting a business.
Goods and Services Tax, GST, registration
All companies and individuals must register if their combined annual sales exceed Rs. 20 lakhs in the majority of states and Rs. 10 lakhs in the Special Category State. In addition, regardless of turnover, every supplier of products involved in an interstate supply must complete a new GST registration online. Every entrepreneur should get familiar with the criteria and register for the Goods and Services Tax, or GST, within the first 30 days of starting a business.
Enrollment in the Udyog Aadhaar
It’s necessary to register with the Small Business Administration, or SBA, before starting a small business, such as a micro, minor, or medium-sized one. A manufacturing company’s or service provider’s investment in plant and machinery, or the equipment they employ to offer services, is the basis for Udyog Aadhaar registration. When a business registers for Udyog Aadhaar, it becomes eligible for a number of government incentives and initiatives to support India’s small businesses.
Registration or FSSAI Certification
Nationwide, the FSSAI verifies the quality and standards of food products. This five-letter phrase is sought for by both businesses and individual customers in the packaging or containers of food offered in eateries, shops, kiosks, and modern trade venues. Licences and registrations are divided into three categories by the FSSAI:
State Registration FSSAI
State FSSAI Licence
Central Licence Code for Importing and Exporting issued by FSSAI
Everyone who imports or exports goods or services from India must receive an import export code, according to the DGFT Department. To obtain an Import Export Code, the company needs a PAN and a bank account.
Stores and Establishments Act authorization
When the “Shop and Establishments Act” was passed, its purpose was to control how businesses operated, including their use of children, working hours, and pay. Under the Shop and Establishment Act, state governments provide licences or registrations, which differ from state to state. Therefore, it is required to get in touch with the proper state government authority, which varies depending on the state where the business is located, in order to secure a Shops and Establishment Act Licence.
Permit for Gumastha
In Maharashtra, one must obtain a “Gumastha” licence from the government in order to run a business. You’ll require the following paperwork to obtain it:
PAN Card Address proof or a landlord’s letter of approval
Greater Mumbai Municipal Corporation Application Letter Business Authorization Letter Partnership Fees
Documents needed for a partnership firm include the Memorandum and Articles of Association, Certificate of Incorporation, Director’s ID, and Address Proof.
Additional Licences and Registrations
Regulatory organisations like the IRDAI and Reserve Bank of India, among others, must grant licence for specific enterprises that provide insurance, defense-related services, financial services, broadcasting, etc. Additionally, a business could need to request authorization from the local hospital system, the environmental control board, or even the fire department. What kind of business you want to create and run in the end is what matters most. Consult a professional about the legal and regulatory requirements before starting a business.
Documents Needed For An Indian Business Licence
Depending on the sort of authority or business, different types of documents may be required. The following paperwork must be submitted in order to complete the business registration process:
Driving licence, ID and Aadhaar on Pan Card Voters’ ID
Bank statement on a passport
Lease Agreement or Rent Agreement Authority Letter of Business Articles of Association and Memorandum of Association Co-ownership Agreement No-objection letter from the Landlord