Licenses and permits represent business identity, integrity and competency. Indian government has set various rules, regulations and acts for businesses to function efficiently. Obtaining and adhering to the required permits and licenses secures your business, builds customer confidence, improves reputation and gives you an edge over competitors.
StartupYo tries to list all relevant licenses and permits that are applicable to your business.
IATA registration brings value and credibility to the Travel Agents. IATA registration is not mandatory. International Air Transport Association (IATA) is the trade association for the world airlines. IATA membership is awarded to travel agents after evaluating the following: · financial record and standing agent · staff qualifications · premises · security · positive net equity and Earnings before Interest, Taxation, Depreciation, Amortisation and extraordinary items (EBITDA) Travel agents must provide a Financial Security with a minimum amount of USD 50,000.
Registration for a Travel Agent is not mandatory, but it provides a recognition.?A Travel Agency can be registered as a One Person Company, Private Limited Company or LLP followed by Service Tax and VAT registration. For becoming a Government of India recognized travel agent, requirements on capital invested, number of staff-employed, maintenance of minimum office space etc. must be met. Application must be submitted to the Ministry of Tourism. International Air Transport Association (IATA) membership is an added advantage for Travel Agents.
The government has set specific laws for setting up a Rice Mill. Any person or authority can apply for rice mill license through an application to the Central Government. Details of location, size and type of rice mill are required. The permits are granted after specifying the period within which the mill is to be established. Before granting any permit, the Central Government has the powers to undertake a full and complete investigation regarding number of rice mills in the locality, availability of paddy, employment opportunities, power and water supply, type of rice mill and possibilities of unemployment in the neighbourhood.
Bureau of Energy Efficiency (BEE) develops policies and strategies to reduce energy intensity of the Indian economy. BEE has made it mandatory for certain items to have ratings and labels to indicate their performance. BEE also rates enterprises on a scale of one to eight. The BEE rating indicates the enterprise’s compliance level for energy efficiency. Higher BEE level indicates better performance. Enterprises target a better BEE rating every year. Products will obtain the license (label) to be sold only if they meet the BEE standards. Label (rating on the scale of 1 to 5) is a certificate on the product indicating its performance.
AGMARK is a certificate given to agricultural products that pass the tests conducted in the AGMARK labs. These tests ensure health and safety of the consumers. It is not mandatory for all the producers to use AGMARK on their products. 213 products are listed by the Directorate of Marketing and Inspection, Government of India for AGMARK certification. Products include food grains and allied products, fruits and vegetables, spices and condiments, oil seeds and fat and vegetable oil etc. To obtain AGMARK for an agricultural product, visit the local Regional AGMARK Laboratories. To start the business of grading and marking AGMARK, apply?to the Sub Office/Regional Office of Directorate of Marketing & Inspection (DMI) with the documents. To grade through the State Grading Laboratory, submit the?application to the concerned State Authority. An?Officer of the Sub Office/Regional Office inspects the infrastructure, premises and laboratory?for assessing its?suitability to undertake grading of the commodity.
To manufacture, sell and distribute any cosmetic product, a cosmetic license is required from the licensing authority of the State Government. Two types of cosmetic license exist: Manufacturing and Importing. Application forms are available at the State Drug Department website. Depending on the business activity, choose the registration form as follows. · For manufacture or sale, fill and submit Form 32. · For loan license of manufacture, sale and distribution, fill and submit Form 32-A. · For testing drugs, cosmetics or raw material used in the manufacturing, fill and submit Form 37. After site visit, the license is issued or rejected.
Drug License is mandatory for all enterprises involved in manufacture, storage, distribution and sale of drugs or medicine or cosmetics. It is issued by the Drug Control Authority. Drug License is awarded after validating the area, competency and infrastructure. Drug License is applicable to businesses dealing with allopathic, homeopathic, ayurvedic or unani drugs. Types of Drug Licenses: Manufacturing License, Sale (Retail and Wholesale) License and Loan License. Drug License can be applied online. Fill and submit the application with the required documents and make payment. The business premises are examined by the District Senior Drug Controller. On fulfilling all requirements, the State Drugs Controller of the concerned licensing authority issues the license.
International Organization for Standardization (ISO) is an independent international organisation. It develops International Standards but does not issue ISO certificates. External certification bodies in India perform ISO certification registrations. An ISO certificate brings international credibility, customer satisfaction and product quality to businesses. Different types of ISO certifications are offered based on the nature of business. To register an ISO certificate, choose a suitable ISO Certification, an ISO certification body and submit the application form. Documents are reviewed by the ISO Registrar and an initial review is performed to identify major gaps. ISO registrar will conduct a physical onsite inspection to audit the changes made. Final audit is then conducted to check closure of gaps and the ISO certificate is issued.
Factory license is mandatory for enterprises to carry out manufacturing in an area. Any person or entity willing to construct, extend or use any building as a factory must obtain this license. The Factories Act ensures safety measures and promotes health and welfare of the workers in the factories. The local Chief Inspectorate of Factories issues this license. To obtain factory license, apply for approval of the plan by filling the application, paying the fee and submitting it to the Chief Inspector or State government.
All jewellers, jewellery shops and stores willing to sell hallmarked jewellery must have a Bureau of Indian Standards (BIS) License. For multiple jewellery outlets, the jeweller can apply for corporate license. After the license is issued, the terms and conditions mentioned in the agreement must be adhered to. Failure or deviating from the agreement may result in penalty or cancellation of license. To apply for BIS license, create an agreement on a stamp paper. Fill the BIS Hallmark application form and submit it with supporting documents after paying the processing fee. The BIS inspector comes for inspection and issues or rejects the license.
Employee State Insurance (ESI) is a scheme that provides social, medical and monetary benefits to the workers. Any enterprise with more than 10 employees (20 employees in some states) receiving a monthly salary less than Rs. 15000 must register with the Employee State Insurance Corporation (ESIC). ESI is governed by the ESIC, Ministry of Labour and Employment, Government of India. Every month, the employer contributes 4.75% of employee’s monthly salary and the employee contributes 1.75% of the monthly salary towards ESI. To register ESI online, fill the Employers Registration Form and submit it with the required documents. After verification, the government issues a 17-digit identification number.
Any enterprise involved in generation, disposal, storage or transport of sewage, gas, biomedical waste or hazardous waste must obtain a No Objection Certificate (NOC) from the State Pollution Control Board. It is also mandatory for enterprises set up outside the designated Industrial Area or converting agricultural land into industrial area. An application for NOC can be submitted online. After field visit by the officials, the NOC is issued or rejected.
Trademark is a logo that represents and distinguishes your company. Trademark registration is not mandatory but with a registered trademark the owner has the right to sue for damages due to misuse of trademark. Trademarks are registered by the Controller General of Patents Designs and Trademarks, Ministry of Commerce and Industry, Government of India. Trademark registration can be applied online. Fill in the trademark application Form- TM 1, attach supporting documents and submit it. After receiving the acknowledgement, symbol ‘TM’ can be used with your brand name until registration completes. The Registrar checks and publishes the trademark in the Indian Trade Mark Journals if it complies with the laws. If no objection is raised within 3 months from the date of publication, a Certificate of Registration is issued. Thereafter, symbol ‘R’ can be used with the trademark logo.
No objection Certificate (NOC) from the Fire Department is required by restaurants, fireworks, gas and oil vendors, schools, theatres, clubs, and other businesses where flammable materials exist. Application must be submitted at the local fire department after which the Chief Fire Officer would inspect the site and issue NOC.
All food enterprises like hotels, restaurants, bakeries etc. must?obtain a health trade license to run the business. It ensures food safety and hygiene to the customers. Applications must be submitted at the local municipal office. Every State has its own municipality laws for Health Trade License.
Shops and Establishment License is mandatory for all business entities carrying out commercial activities. Shops and Establishment Act governs the laws of employer and employees like wage payments, leaves and holidays, work hours, etc. Shops and Establishment Act is governed by the Labour Department of the state. Regulations vary from state to state. Application for license must be submitted to the local Labour Department Officials.
BIS Certification ensures the quality, safety and reliability of products. BIS Certification is mandatory for certain products like cement, household electrical goods, food and related products, diesel engines, oil pressure stoves, automobile accessories, cylinders, valves and regulators, medical equipment, steel products, electrical transformers etc. Samples of products are tested in the preliminary and surveillance operations. Types of BIS Certification Schemes based on products and duration for certification are: Normal Procedure for Domestic Manufacturers Simplified Procedure for Domestic Manufacturers Tatkal Scheme ECO Mark Scheme Foreign Manufacturers Certification Scheme
GST registration is mandatory for a person or entity supplying goods or services in India with a turnover exceeding Rs. 20 Lakhs (Rs. 10 Lakhs for special states). The type of GST registration depends on the type of goods or services sold. To apply for GST Registration online, visit gst.gov.in. Fill the registration form Part-A. After verification and confirmation from portal, upload documents, fill Form-B and submit. After successful registration, Goods and Services Tax Identification Number (GSTIN) is issued. Absence of GSTIN may attract penalty.
EPF Registration is mandatory for enterprises with more than 20 employees. The employees of the EPF registered employer will be eligible for Provident Fund (PF). After EPF Registration, the employer deducts and pays the PF. EPF Registration can be applied online. Fill the registration form on epfindia.gov.in and submit it. Download, print and submit the application PDF at the EPF office.
Value Added Tax (VAT) is a tax collected from consumers and paid to the government by entities selling goods and services. VAT registration is mandatory for businesses producing and selling products with an annual turnover over specified limits. VAT regulations differ from state to state. VAT registration can be applied online through state government’s VAT website. After filling the application and attaching the documents, the business is verified, and a 11-digit VAT Number / TIN Number / CST Number is allotted after fee payment.
After company registration, all business owners must obtain a Trade License to start any kind of business activity. Without Trade License, the business is considered illegal and attracts penalty. The issuing authority, application fee and renewal policies vary from state to state. The State Government along with the local Municipal Corporation issues this license. Trade license can be applied online.
MSME stands for micro, small and medium enterprises. The MSMED Act promotes and supports all MSMEs through schemes, incentives and subsidies. Enterprises willing to avail these facilities must have an MSME Registration. Major benefits of MSME Registration are low interest rates, excise exemption, tax subsidies, power tariff subsidies and capital investment subsidies. To apply for MSME registration, fill the application online on udyogaadhaar.gov.in and upload the required documents. MSME Registration Certificate is issued after approval.
Service providers with an annual turnover exceeding Rs.10 Lakh charge service tax on the goods and services they sell and pay the tax to the Service Tax Department. To collect and pay the Service Tax, Service Tax Registration is mandatory. It is applicable to all service providing businesses like restaurants, caterers, tour operators etc. Failure to obtain a Service Tax Registration attracts penalty. Service Tax and Service Tax Registration are exempted for small businesses with an annual turnover less than Rs. 10 Lakhs. To apply for service tax registration, register on aces.gov website, fill the ST-1 form, print and sign the acknowledgement and ST-1 form. Send them to the Commissioner-ate. After verification, Service Tax Registration Certificate (ST-2) and a 15-character Service Tax Number is allotted to the Service Provider.
Food Business Operators making an annual turnover less than Rs. 12 lakhs or producing food products less than 100kgs or litres need not obtain an FSSAI License. They can apply for FSSAI Registration. FSSAI Registration also applies to petty food businesses and slaughter units slaughtering not more than 2 large animals or 10 small animals or 50 poultry birds a day. To obtain FSSAI registration, submit FORM A application to the Food and Safety Department.
Food Safety and Standards Authority of India (FSSAI) is an autonomous body under the Ministry of Health & Family Welfare, Government of India. It regulates and ensures food safety. Every Food Business Owner must have an FSSAI License (a 14-digit registration number) to run the business. FSSAI license is mandatory for all Food Business Operators either: · making an annual turnover more than Rs. 12 lakhs · producing food products more than 100 kg or litres a day · handling and collecting milk over 500 litres a day · slaughtering more than 2 large animals or 10 small animals or 50 poultry birds a day The type of FSSAI License - state license or central license depends on business volume, turnover, location etc. Food business operators with the annual turnover between Rs. 12 to 20 lakhs must apply for State License (FORM B) and food business operators with the annual turnover above Rs. 20 lakhs must apply for Central License (FORM C). FSSAI License is valid for five years. Deviation from the FSSAI rules and regulations results in penalty or cancellation of license.
Permanent Account Number (PAN) is a 10-digit alphanumeric number issued by the Income Tax Department. PAN in the name of the legal entity is mandatory for all individuals/entities doing business in India - registered in India or abroad. Companies or business entities require PAN to avoid withholding tax of more than 30%, quote financial transactions, help Income Tax Department track transactions, pay invoices, remittances and IT returns. It is illegal for a company to have more than one PAN. Company PAN is permanent and unchangeable.
Tax Deduction and Collection Account Number (TAN) is a 10-digit alphanumeric number issued by the Income Tax Department. It is required by every business entity that deducts/collects Tax at Source (TDS) TAN is required by the following business entities: · Company/Branch/Division of a company · Individual (Sole Proprietorship) / Branch of individual business · Hindu Undivided Family · Firm / Branch of firm · Association of Persons · Body of Individuals · Association of Persons (Trusts) · Artificial Juridical Person Obtaining a TAN is mandatory for TDS / TCS returns, payment challans and certificates. TAN can be applied online or offline. No documents are required to apply for TAN. Only one TAN is allotted per entity. Businesses having TAN must file TDS returns quarterly. Changes or corrections in TAN are allowed.
To start any business activity, it is mandatory to register the name of the company and the type of the company. While the name of the company becomes the face and identity of business, the type of your company defines its operation. In India, there are six major types of registrations for a company. A company must be registered based on the business activity, requirements and legal advantages.