Starting a business in India is not an easy task. The person is required to make a plan for each and every aspect and complying with all the norms articulated by government is one of them.
Due to the urge of businesses in India, the government has made tremendous progress in the recent days and made starting a business, very easy for Entrepreneurs.
The process of obtaining license changes from one type of business to the other, based on various factors like the number of employees, the type of business, the place of business etc. But there are few licenses and registrations, which are mandatory for all types of businesses.
List of registrations & licenses required for the Startups
Business Registration for startup:
The first thing that is required to start a new business or startup is getting the business registered. There are multi[le business structures available in India, you can choose the best one for you as per the size and nature of your business.
There are various kinds of business structures in India which are as follows:
- Private Limited Company
- Public Limited Company
- One Person Company
- Limited Liability Partnership
- Partnership Firm
- Sole Proprietorship
- Nidhi Company
Select the business structure after taking into consideration all the factors such as features, pros and cons of such particular business structure.
All types of entities and individuals who have an aggregate annual turnover of more than Rs.20 lakhs in most State and Rs.10 lakhs in Special Category States are required to obtain GST Registration. Further, any person supplying goods involved in intra-state supply is required to obtain GST Registration, irrespective of turnover.
In addition to the above criteria, various other criteria has been provided under the GST Act, 2017. It is important for all Entrepreneurs to understand the criteria’s and obtain GST registration within 30 days of starting a business.
Udyog Aadhar Registration
Udyog Aadhar is a twelve digit Unique Identification Number provided by the MSME Government of India for boosting small scale businesses in the country.
The businesses are benefited with small loans with the help of Udyog Aadhaar registration. Currently, the udyog aadhaar registration is migrated to Udyam registration.
Once, you obtained Udyog Aadhaar registration for a business, you can enjoy various subsidies and schemes specially provided by the Government for helping small businesses in India.
Shop And Establishment License
Every state has its own Shop and Establishment Act, which provides for the rules to be followed by every shop and establishment running its business in the state.
The Act also provides for shop and establishment license or trade license. A business that comes under the definition of shop and establishment must obtain the Shop and Establishment Certificate without fail to avoid penalty and fine.
Import Export Code
Any person engaged in 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.
If you are looking forward to start a business in the state of Maharashtra, you must obtain a Gumastha licence. To obtain it, you are required to posses the following documents;
- PAN Card
- An Address proof or a no-objection certificate from the landlord
- Application letter in the prescribed format to the Municipal Corporation of Greater Mumbai
- Authority Letter for Business
- Government Prescribed Fees for a partnership Firm
- Memorandum and Article Of association
- Certificate Of incorporation of the Company
- Director’s ID and Address proof
Other Licenses and Registrations
Certain types of business that involve aspects of dealing or providing insurance, financial services, broadcasting services, defence related services, etc., would require approval from regulatory bodies like Reserve Bank of India, IRDAI, etc.,
Further, a business may also have ot obtain permits from the fire department, or the pollution control board, or maybe the local healthcare system. It all depends on the type of business you are willing to operate. Hence, prior to starting a business, make sure you discuss your business with a Professional to determine and understand the legal and regulatory requirements.