A Guide of Business License Application in India
Getting started is succeeding. Starting a business in India is not a fairy tale story, but the nation has made considerable progress in recent days and has made it easy for Entrepreneurs to incorporate a company. Today, we will look at the most frequently referred licenses and registrations needed for a business in India.
The licensing method varies from one form of company to another, depending on various deciding variables such as the number of workers, industry, size of the company, the position of a business, etc. We look into some of the most commonly obtained licenses or registrations for a business in this article. To decide your exact company needs and more on Business License Application in India, please contact 3E Accounting.
Company or LLP Registration
Most of India’s businesses are started as proprietorships or partnership firms, without Central Government registration. A business registry and LLP are governed by the Ministry of Corporate Affairs. For entrepreneurs with ambitions to run a company with an annual turnover of more than Rs.20 lakhs, it is advisable to have an LLP or Company registration.
The Ministry of Corporate Affairs regulates a Business and LLP’s enlistments. When a corporation or LLP is formed, the organization will have a distinct legal character and the sponsors will enjoy risk control from the Governments. Henceforth it’s better to obtain advice and file a Private Limited company or LLP before beginning a venture.
Once a company or LLP is registered, the entity would have a separate legal identity, and there would be limited liability protection. In fact, the company would have become freely transferable, and the organization would have a perpetual existence. Hence it’s better to consult an expert and register a company or LLP before starting a venture.
To receive GST Registration, all categories of companies and persons with aggregate annual revenue of more than Rs.20 lakhs in most states and Rs.10 lakhs in special category states are needed. In addition, any individual who supplies products that are engaged in intra-state supply is needed to obtain GST Registration, regardless of turnover.
In addition to the above requirements, the GST Act issued several other provisions spelling out the conditions for GST registration. For all entrepreneurs, it is necessary to understand the requirements and obtain GST registration within 30 days of starting a company.
Udyog Aadhar Registration
This is a registry open to entrepreneurs who choose to establish and run a new company – micro, small and medium businesses. The qualifying requirements for receiving Udyog Aadhaar registration are based on the expenditure made by a manufacturing company in plant and machinery or investment in equipment made by a service provider.
FSSAI License or Registration
Food safety and standard authority of India (FSSAI) is responsible to verify the safety and standardization of food products nationwide. Supermarket stores, supermarkets, new retail chains, kiosks and shoppers alike search in their food packages or containers for this five letter phrase.
The license or registration under FSSAI is classified into three categories namely:
- FSSAI Central License
- FSSAI State License
- FSSAI State Registration
Import Export Code
Every individual who is interested in importing or exporting goods/services from India must obtain DGFT’s Import Export Code. To receive the Import Export Code, the company is obligated to have a PAN and a Current Account in a branch.
Shop and Establishment Act License
“The Shop and Establishments Act” was established to govern business behaviour such as hours of service, child labour, fair compensation, workplace welfare and general health. License or registry of the Shop and Business Act is provided by State Governments and differs among States.
Therefore, in order to acquire a Shop and Establishment Act Certificate, the State Government agency involved must be consulted on the grounds of the State in which the company is located.
If you are planning to start a business in the state of Maharashtra, you must obtain a Gumastha licence. To procure it, one needs to possess the following documents:
- PAN Card
- An Address proof or a no-objection certificate from the landlord
- Letter of service in a specified format to Greater Mumbai Municipal Corporation
- Authority Letter for Business
- Government Prescribed Fees for a partnership Firm
- Memorandum and Article Of association
- Certificate Of the incorporation of the Company
- Director’s ID and Address proof
Other Licenses and Registrations
Such forms of company that include aspects of insurance selling or offering, financial services, broadcasting services, security-related services, etc., will entail the approval of regulatory bodies such as Reserve Bank of India, IRDAI, etc.
In addition, an enterprise may also have or obtain permits from the fire department, the pollution control board, or perhaps the local healthcare system. It all depends on the sort of company you plan to manage. Therefore, be sure to discuss your business with a professional or with 3E Accounting before starting a business to determine and understand the legal and regulatory requirements.
We are here to help you. For more information on Business License Application in India, contact us today.