Popular Licenses for Businesses in India

Business licenses and permits have been used in the country for the past forty years, and state governments manage them via municipal corporation laws.

This ensures that no one is harmed in any way due to a commerce or business’s disturbance and health danger. This also ensures that the business or trade is being held in a particular area, in a specific location and that no one is engaging in illegal business activities.

Let us go over the business license, its uses, and its advantages in more detail.

The process of getting a license differs from one type of industry to the next, depending on a variety of criteria such as the number of workers, the sector, the type of business, the location of the firm, and so on. In this section, we’ll look for some of the most popular company licenses and registrations and delve into this more.

Eligibility to Apply for a Business License

The following are the requirements for applying for a business license:

  • The applicant must be at least eighteen years old.
  • There should be no criminal records on the candidate.
  • The company should be lawful to operate.

How to Apply for a Business License in India?

The process to obtain a business license is determined by the type of the firm, its location, its nature, and its size. To find out what type of business license and permits in India is necessary, call a professional service provider or even a CA, CS, and ICWA agency and ask for advice on securing a business license in India.

Getting professional advice on gaining a business license will help determine whether or not you need that specific business license. It would also save time and ensure that no errors or mistakes are made throughout obtaining a company license.

To start a business in India, you’ll need the following documents. 

  • Pan Card
  • Driving License and Voter Id
  • Aadhar Card
  • Passport
  • Rent Agreement and Lease Agreement’
  • Electricity Bill, Water Bill, or Telephone Bill
  • Chartered Accountant Certificate
  • Memorandum Of Association and Article of Association.
  • Partnership Deed

So, those are the documents you’ll need to set up a business in India.

List of Popular Business Licenses in India

PAN - TAN Card

PAN is an electronic system through which, all tax related information for a person/company is recorded against a single PAN number.

Import Export Code

Before you start Import/Export, obtaining an Import Export Code is a pre-requisite. This is a unique 10-digit number that will help you in establishing your identity in front of the Authorities.

Shop & Establishment Act

The Shops and Establishments Act regulates the work conditions and ensures the workers’ rights are protected. When an entity employs people who may be casual workers, full-time employees, contract-based etc.,

MSME Registration

MSME registration or SSI registration helps businesses avail multiple government subsidies and benefits MSME act.

FSSAI (Food License Regn)

A food license or FSSAI license is granted to all manufacturers, traders, restaurants carrying out any food business which may involve manufacturing or processing.

MCD Factory License

Factory License can be obtain for confirming industrial area, DDA/DSIDC/DI Built up Auction/Allotted sheds, free hold plots, House hold category, Local Commercial Category, Relocation Scheme, Sub letting of lease hold plots and sheds.

GEM Portal Registration

Government E-Marketplace, is a procurement portal, which can be used to purchase or sell any item or goods by anyone. Nevertheless, like anything else, an individual will need to comply with the registration form to begin their endeavour on the platform.

Start-Up India Registration

There are a number of benefits startups receive by the Startup India Scheme. Nevertheless, in order to avail these benefits, an entity is needed to be set up by the DPIIT as a startup.

Trade License

A trade license is a document/certificate that gives the permission to the applicant (person seeking to open a business) to commence a particular trade or business in a particular area/location.

The Bottom Line

We hope you found our guide on the business license in India helpful. Certain kinds of businesses, such as one that deals in managing or providing security or safety, Financial Institutes, broadcasting offices, Defense Services, etc., would require licensing and registration from public agencies such as the Reserve Bank of India, IRDAI, Fire Station, Pollution Control Board, RTO, and so on.

All are based on the type of business in which you will engage. As a result, before starting a business, consult with an expert to determine and know the legal formalities associated with obtaining a business license and permit in India.