How To Get a Business License? Eligibility, Documents to Apply Business License


How To Get a Business License: The first step is to success. Starting a venture in India isn’t simple, but India has made substantial progress over the years, making it simpler for enterprises to commence operations.
Permits and licenses are issued by the government of a particular municipality or state to permit companies to operate. An individual must obtain a business license before opening a company in India.

This is a key and essential document that comes from a municipal council. Businesses are permitted to engage in specific activities in a designated area. These licenses and permits are issued to test businesses to make sure they are operating responsibly.

Why do You Need a Business License and Permits?

Since 1975, business licenses and permits have been issued in the United States by the state government. Municipal corporations operate under state regulations.

This protects people from being harmed in any way due to a disruption or health hazard of a commercial business or trade. It also allows for the location, area and activities of a particular company or trade to be restricted to a particular area.

Let us examine the business license, which its functions, and its advantages in more detail.

The process of obtaining a license differs from one industry to another, depending on numerous factors, such as the number of employees, the industry, the type of organization, the location, and so forth. In this article, we’ll examine some of the most common industry licenses and registrations and delve into this topic in more detail.

How To Get a Business License

Eligibility to Apply for a Business License

To be eligible for a business license, one must meet these requirements:

  • The candidate must be at least eighteen years old.
  • The candidate should not have any criminal record.
  • The company should be allowed to operate legally.

List of Business Licenses in India

1. Company Registration

The first step in setting up a new company in India is obtaining a business license. Depending on the business structure and the company’s partners, the type of business license required can vary.
Here are some of the types of new business registration categories that exist in India.

Company or Limited Liability Partnership (LLP).

Most firms in India are established as sole proprietorships or general partnerships, with no central-government licensing. The Ministry of Corporate Affairs manages the creation of companies and limited liability partnerships (LLPs). It is recommended that business owners who aspire to run a company with annual revenue of more than Rs.19 lakhs register as a LLP or a company.

Once a business or LLP is registered, it will become legally established, and the promoters will be protected from liability. Furthermore, the company would be easily marketable, and the company would continue forever. As a result, it is always a good idea to speak with a professional prior to starting a company.

The benefits of being a full-time logistics company are that the business is easily transferrable and can be done from any country legally.

One Person Company or OPC

The One Person Company registration was introduced in 2013, allowing a single proprietor to register their company and legally conduct their business operations.

Private Limited Company (PLC)

In India, a Private Limited Company (PLC) or Private Limited Company (Plc) is considered a separate legal entity from its owners. Such an entity has shareholders, directors, and numerous employees, all of whom are regarded as employees of that company.

Organizations and startups seeking to raise funds and offer employee stock units sometimes register as PLC.

Public Limited Company

Public Limited Company is a nonprofit association governed by voluntary membership. The liability of each member is limited to the shares they own. Businesses with high turnover are registered as Public Limited Companies (PLCs) or Private Limited Companies (PLCs). Some registrations are made to acquire a stock certificate without the goal of offering an IPO in the near future.

The Ministry of Corporate Affairs registers businesses under either of these categories. More information can be found here.

2. Registration for GST

GST registration is required for all companies and people making more than Rs.20 lakh per year in most regions and Rs.10 lakh in Special Category Provinces. Registration is also required for anyone who delivers merchandise for sale within the state.

In addition to the preceding requirements, the GST Act includes numerous other stipulations that define the requirements for GST registration. Understanding these requirements and meeting them within one month of starting a company is essential for all business owners.

3. Registration for Udyog Aadhaar (Udyam or MSME)

Those who want to start a business or operate a micro, small, or medium-sized enterprise can apply for this license. The eligibility requirements for getting Udyog Aadhaar registration depend on an applicant’s investment in equipment and plant or in machinery for a service provider.

Once a company has received a Udyog Aadhaar license, it is eligible for a government program and benefits for smaller businesses in India.

4. Import Export Code

The India Directorate of the Federal Tax Authority (DGFT) requires everyone involved with trading products or services in India to obtain an Import Export Code. The company must have a Permanent Account Number as well as a checking account to receive an Import Export Code.

5. A License Under the Shop and Establishment Act

The “Shop and Establishments Act” sets guidelines for the working conditions of employees, including child labor, salaries, workplace safety, and employee health. State governments provide Shop and Establishment Act certifications or registrations, which vary according to state. As a result, the relevant government agency for a Shop and Establishment Act License should be contacted based on the State in which the business is located.

6. Gumastha Registration

To open a business in Maharashtra, you’ll first need to obtain a Gumastha license.

  • Identity Card (PAN)
  • Residence proof or an owner’s no-objection letter
  • I am applying to the __(city)__’s Paramus Office for a job as a __(handicapped)__ service worker. I want to serve as a __(ambulance)__ technician and am available to work weekdays, from early in the morning until late at night.
  • Authority Letter for Business Plan
  • Government in the Standard Format for Partnership
  • Business Documents of Agreement Certificate of Incorporation of the Business Director’s ID and Proof of Address

How To Get a Business License

7. FSSAI License for Food Business

If you are looking to get a business license for food products, this is the response.

Food Safety and Standard Authority of India or FSSAI is a government of India initiative responsible for safety and standardization of all food products sold anywhere in the country. If you plan to open a food business, whether it be packaged food, a restaurant, a Cloud kitchen, or any other kind of food business model, you must obtain a license from FSSAI.

There are three kinds of FSSAI licenses:

  • FSSAI Central Permit
  • A license issued by the FSSAI
  • FSAI has State Registration.

These are designated by business productivity.

  • Earn up to Rs 12 lakh annually: Basic FSSAI registration.
  • Turnover between Rs 12 lakh and Rs 20 crore: State FSSAI registration fee
  • Turnover greater than Rs 20 crore: FSSAI Central registration

8. Other Registrations and Licenses

Certain types of businesses that make or supply insurance, financial services, broadcasting services, security-related services, and other such services would require regulatory approval from agencies like the Reserve Bank of India, IRDAI, and so forth.

Furthermore, businesses might need to secure a permit from the fire administration agency, environmental protection agency, or local health department. It depends on what type of business you are starting. Consequently, before starting a business, it is essential to consult a licensed professional to review the legal requirements.

How To Get a Business License in India?

To obtain a business license, the type of company, its location, its nature, and its size must be considered. An agent or CA, CS, and ICWA agency can advise on how to secure a business license in India.

Seeking help on obtaining a business license will help you figure out whether or not you require that credential. It would also spare you time and effort and make sure that no errors or mistakes are made during the process.

To start a company in India, you will need these documents.

  • PAN Card
  • The driver’s license and voter registration are qualifications for qualifying to receive TOS.
  • Aadhar Card
  • Passport
  • Rent Agreement and Lease Agreement’
  • Electricity, water, or telephone bill
  • Chartered Accountant Certificate
  • Memorandum of Association and Article of Association.
  • Partnership Deed

These are the documents you will need to open a business in India.

We thank you for finding our guide on public business licensing helpful. Certain types of businesses, including ones that handle security or safety, Financial Institutes, broadcasting offices, Defense Services, and others, will require licensing and registration from public agencies such as the Reserve Bank of India, IRDAI, Fire Station, Pollution Control Board, RTO, and more.

You should first contact an expert so that you are aware of all the legal requirements for your type of business. You ought to then obtain a license and permit to operate your business.


Please enter your comment!
Please enter your name here