Licenses Required for Business

A business license is essential to establish and operate a business within a specific territory. It is obtained legally from the state licensing organisation to register the business legally. Even for a small business, acquiring a business license is equally essential as it is for a big corporation or big business.

The process of obtaining license changes from one type of business to the other,  based on various determining factors like the number of employees, sector, the type of business, the place of business etc. In this little blog, we look at commonly obtained licenses or registrations for a business. To get a better idea of the exact requirement for your business, get in touch with a Trustra Advisory.

Company or LLP Registration

Following is a list of registrations mandatory that are common to all states are as follows:

1. Registration of Business's Name- Giving a name to your company and securing it right away is the first and foremost step towards registering for your small business under a novel name.
2. Director Identification Number (DIN)- The Director Identification Number (DIN) is a distinctive 8 digit number required for an existing or proposed Director of a company. It is an easy one day process and can be acquired online.
3. GST Registration- Any individual or business providing goods or services dealing in the intra-state supply and unmindful of the turnover must acquire their business's GST Registration. All entrepreneurs need to comprehend the different criteria mentioned under the GST Act and get GST Registration within 30 days from beginning a business.
4. Shop and Establishment Act License - The Shop and Establishments Act”, was created for regulating the conduct of business like the hours of work, child labour, payment of wages, safety and general health of the employees. Shop and Establishment Act license or registration is issued by the State Governments and varies from state. Hence, based on the state in which the business is situated, the concerned State Government authority must be approached for obtaining Shop and Establishment Act License.
5. Import Export Code- Any person involved in the import or export of goods/services from India must obtain Import Export Code from the DGFT Department. To obtain Import Export Code, it is mandatory for the business to have a PAN and a Current Account in a bank.
6. Udyog Aadhar Registration- This is an enlistment for businesses that need to begin and work as an independent company, like Micro, Small or Medium (MSME) Scale Business. It is an initiative of the MSME Ministry, Government of India. Its main objective is to simplify the registration process for entrepreneurs and provide different subsidies and benefits to businesses to promote ease of doing business.
7. FSSAI License or Registration - “Food safety and standard authority of India”(FSSAI), is responsible to verify the safety and standardization of food products nationwide. Retail stores, restaurants, modern trade outlets, kiosks and consumers alike look for this five-letter word in their food packets or containers. Under FSSAI, the license or registration is divided into three categories namely:

• FSSAI Central License
• FSSAI State License
• FSSAI State Registration

Documents Required For Business License In India

Apart from the above registrations necessary for your specific business, the following are the documents that you need to submit and acquire your small business's license:

• Government-issued Identity containing your address
• PAN card
• Driving License
• Address proof
• Bank statement
• Residence card
• Residential proof
• Bank statement
• Passport
• Latest Electricity Bill or Telephone Bill or Mobile Bill
• Registered office proof
• The registered document of the premises of the registered office in the name of the company
• The notarized copy of the agreement in the company’s name and the copy of the rent paid receipt should not be older than a month.

In today's scenario, India has an excellent field for small businesses. Every individual has a unique idea for them to enter into entrepreneurship and make sure profits. There are a few requirements of individual licenses and registrations when a person plans to establish their small business needs. Thus, carrying out the legal requirements is the first and foremost step to lead the business to progress lawfully.