Which licences and registrations are required for business in India? In India, the landscape of licences and registrations mandated for all types of businesses encompasses a wide range of requirements that must be fulfilled to legally set up and operate a business. These foundational steps include securing various licenses and registrations required for business in India, such as registering with the Registrar of Companies (ROC) for specific business structures like private limited companies, public limited companies, or partnerships. Additionally, every business must acquire a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN) for taxation purposes, which are essential for financial and regulatory compliance.
Depending on the specific sector and nature of operations, additional permits required for business setup may be necessary. This includes the Goods and Services Tax (GST) registration for businesses engaged in the supply of goods or services, Professional Tax registration applicable in certain Indian states, and sector-specific licences such as the FSSAI licence for food-related businesses, ISO certifications for manufacturing entities, or environmental permits from the State Pollution Control Board.
Important Registrations and Licences Required for Businesses
With licences and registration for all types of business in India being mandatory, understanding the essential registrations can help immensely. From securing permits for business setup to obtaining industry-specific licences, each registration plays a pivotal role in ensuring compliance and establishing credibility in the competitive market.
With licences and registration for all types of business in India being mandatory, understanding the essential registrations can help immensely. From securing permits for business setup to obtaining industry-specific licences, each registration plays a pivotal role in ensuring compliance and establishing credibility in the competitive market.
1. Company Registration
In India, many businesses start as Proprietorships or Partnerships without getting any registration from the regulatory authority, on the other hand, LLPs, Private Limited Companies and other Companies are mandated to be registered under the Ministry of Corporate Affairs (MCA). This registration grants a separate legal identity, limited liability protection and ease of transferability, fostering growth potential. The registration process is simplified by filling online SPICe form on the MCA website with submitting a Digital Signature Certificate (DSC), Director Identity Number (DIN) and other specified documents. Once submitted to the Registrar of Companies (RoC), documents are reviewed, leading to the issuance of a Certificate of Incorporation.
2. GST Registration
Businesses with an aggregate annual turnover exceeding Rs. 20 lakhs (Rs. 10 lakhs for Special Category States) are required to register for GST. It ensures compliance with the tax laws of India, allowing businesses to collect taxes from their customers, file tax returns, and remit the collected taxes to the government. Registration with GST lends legitimacy to a business. It provides evidence that the business is recognized by the government and is operating within the legal framework.
How to Obtain a GST Certificate
- Visit the official GST portal. Click on the “Services” option and select “Registration” from the dropdown menu.
- Click on”New Registration” to kickstart the registration procedure.
- Proceed by selecting the “Taxpayer” category.
- Complete the GST Registration Form (REG-01) with essential details such as PAN, mobile number, and email address. Upon submission, a verification OTP will be sent to your mobile and email for authentication.
- Upon successful submission, an Application Reference Number (ARN) will be generated and dispatched to your mobile and email for tracking purposes.
- Upload the required documents as per the checklist provided on the portal.
- Once the application and documents are verified by the GST authorities and approval is granted. you will receive the Certificate of Registration containing your distinct Goods and Services Tax Identification Number (GSTIN).
3. MSME / Udyam Registration
MSME / Udyam Registration offers a vital gateway for entrepreneurs aiming to establish and operate small businesses across India, encompassing micro, small and medium enterprises. The eligibility criteria for this registration hinge on the investment made in plant and machinery for manufacturing concerns or equipment for service providers. Upon securing Udyog Aadhaar registration, businesses gain access to government schemes to foster growth and sustainability.
How to Obtain MSME / Udyam Registration
- Visit the official website Udyam Registration
- Click on “For new entrepreneurs who are not registered yet as MSME or those with EM-II” on the homepage.
- Enter your Aadhaar Number and the Name of the Entrepreneur, then click “Validate & Generate OTP.”
- Validate the OTP received on your mobile linked with the Aadhaar card.
- Proceed to PAN verification by entering the Type of Organisation, PAN number, and indicating GSTIN and the previous year’s ITR status.
- Complete the Udyam registration application form with necessary details such as enterprise name, location, address, bank details, activity, NIC code, and employment count.
- Provide investment in plant and machinery details, turnover details, and select the declaration.
- Enter the final OTP received, submit the form and you will receive the Udyam e-registration certificate via email.
4. FSSAI License
Obtaining an FSSAI (Food Safety and Standards Authority of India) license is important for ensuring compliance with regulatory standards and safeguarding consumer health for food business ventures in India. The FSSAI, as the governing body, oversees the safety and standardization of all food products circulating within the country. Whether you’re venturing into restaurant operations, cloud kitchens, packaged foods, or any other food-related endeavour, securing an FSSAI license is imperative.
How to Obtain FSSAI License
- Food Business Operators (FBOs) can apply for FSSAI registration online by completing either Form A (for Registration) or Form B (for State and Central License) on the FoSCoS portal. Alternatively, they can opt for offline registration by submitting the respective forms to the Food and Safety Department.
- The FSSAI registration form must be accompanied by the required documents. The documents must be uploaded online on the FoSCos portal at the time of filling the application or submitted to the Food and Safety Department along with the application physically.
- The FSSAI registration form can be accepted or it may be rejected by the Department within 7 days from the date of receipt of an application either physically or online through the FoSCoS portal.
- The Department will scrutinize the submitted documents.
- If deemed necessary, the Department may conduct an inspection of the food premises before granting the certificate.
- Upon satisfying all criteria, the Department will issue an FSSAI registration certificate containing the registration number and the applicant’s photo via email. The certificate can also be downloaded from the FoSCoS portal.
- FBOs are required to prominently display the FSSAI registration certificate at their place of business during business hours.
5. Import Export Code
The Import Export Code (IEC) stands as a fundamental requirement for individuals or businesses engaged in importing or exporting goods and services from India. Issued by the Directorate General of Foreign Trade (DGFT) Department, the IEC serves as a unique identifier, facilitating seamless transactions across borders. This code not only ensures regulatory compliance but also serves as a crucial tool for fostering global business endeavours.
How to Obtain Import Export Code
- Go to the DGFT website.
- Click on ‘Services’ and choose ‘IEC Profile Management.’
- Select ‘Apply for IEC’ and then click ‘Register.’
- Enter details and request for OTP. Enter the OTP for validation.
- After successful OTP validation, you will receive a temporary password.
- Use the temporary password to log in to the DGFT website.
- Click on ‘Apply for IEC’ and choose ‘Start Fresh Application.’
- Enter the general information of the proprietor/partner/director/Karta/managing trustee, and bank details. Attach Digital Signature Certificate (DSC) and make payment.
- After successful payment, you will receive a receipt.
- The IEC Certificate will be emailed. Download it from the DGFT website under ‘Print IEC under the ‘IEC Profile Management’.
6. Shop and Establishment License
The Shop and Establishment Act stands as a pivotal legislative framework designed to oversee and regulate various aspects of business operations, including working hours, wage payments, child labor, and employee welfare. The issuance of Shop and Establishment Act licenses is delegated to state governments, with variations existing between different states. Consequently, businesses must approach the respective State Public body corresponding to their location to obtain the necessary license.
How to Obtain a Shop and Establishment Registration Certificate
- Obtaining the Shop and Establishment Registration Certificate varies by state and can be done online or offline.
- For online registration, the proprietor fills out the application form on the State Labour Department website, uploads documents, and pays fees. Once approved, the certificate is issued online.
- For offline registration, the proprietor submits the application to the Chief Inspector with fees. After verification, the Chief Inspector issues the certificate.
- The application form includes employer and establishment details, address, category, and employee count.
Final Thoughts
Obtaining the right licenses and registration for all types of businesses in India forms the legal backbone of their operations. From company registration to obtaining industry-specific licenses and permits, each step ensures compliance and operational legitimacy. Burgeon Law serves as an invaluable partner to businesses offering support and expertise to navigate the intricacies of licenses and registration for all types of business in India. Our team provides tailored solutions, ensuring compliance with regulatory requirements while maximizing operational efficiency.
Navigate Your Business’s Legal Foundation with Ease
Securing the necessary licenses and registrations for all types of businesses in India can be daunting, but professional legal services can simplify these complex processes. With Burgeon Law’s expertise in navigating India’s regulatory landscape, businesses can confidently embark on their journey. Explore Burgeon Law’s “Setting up in India” services to receive personalized advice and assistance tailored to your business’s specific requirements. Our team of legal professionals is dedicated to guiding you through the intricacies of registrations and licenses, empowering your business to thrive in the Indian market.
FAQs
1. What is the first step in obtaining legal registration for a business in India?
The first step in obtaining legal registration for a business in India is to determine the appropriate business structure or entity type. This decision is crucial as it impacts taxes, compliance requirements, ownership rights, and access to investors. Once the business structure is chosen, the registration process can be initiated accordingly, adhering to the specific regulations and procedures set forth by the Ministry of Corporate Affairs
2. How crucial is GST registration for a business in India?
GST registration holds immense importance for businesses in India as it serves as a gateway to tax compliance and operational legitimacy. Beyond meeting statutory requirements, it enables businesses to avail input tax credits, thereby reducing tax liabilities and enhancing financial efficiency. Moreover, it fosters trust among customers and partners, signaling adherence to regulatory standards and bolstering market reputation.
3. How does Burgeon Law support businesses in navigating regulatory requirements?
Burgeon Law supports businesses in navigating regulatory requirements by providing comprehensive legal expertise and strategic guidance tailored to their specific needs. We work closely with clients to understand their business objectives and operational intricacies, offering solutions that align with legal requirements while optimizing efficiency and minimizing disruptions.
4. How can businesses ensure compliance with Indian regulatory requirements?
Businesses can ensure compliance with Indian regulatory requirements through several key steps:
- By Staying Informed of Regulatory Changes
- Conducting Regular Audits
- Developing Compliance Policies
- Maintaining Accurate Records
- Engaging with Legal Counsel
- Monitoring Changes
- Collaborating with Authorities
5. How long does it take to secure all necessary licenses for a new business in India?
The time to secure all necessary licenses for a new business in India can vary significantly depending on various factors such as the type of business, the industry, the location, and the complexity of regulatory requirements. In general, it may take anywhere from a few weeks to several months to obtain all the required licenses and permits. Complex businesses or those operating in heavily regulated industries may require more time due to additional compliance requirements and regulatory scrutiny.
6. How can legal services like Burgeon Law benefit my startup’s registration process?
Burgeon Law offers comprehensive support throughout your startup’s registration journey. Our team of legal experts provides tailored guidance and solutions, ensuring that every step of the process aligns with your specific needs and objectives. We navigate the complex regulatory landscape on your behalf, ensuring strict compliance with all applicable laws and regulations.
