As a business owner, you must ensure that your enterprise complies with the laws and regulations mandated by the government. One such requirement is acquiring the correct licenses to carry out business activities. Governments require businesses to procure licenses to ensure that operations are managed legally and in a way that does not harm anyone involved. Thus, it becomes vital for you to learn more about business licenses.
What are the business licenses required in India?
If you own a business in India, you have to ensure that you obtain the following licenses as applicable to your operations:
Company registration:
Firstly, when you incorporate an entity to carry out business activities, you must register the same. You can choose from the following types of company registration according to the form of entity you choose:
Company or Limited Liability Partnership (LLP)
One Person Company
Private Limited Company
Public Limited Company
Read more about registering an LLP company here.
GST registration:
Goods and Services Tax (GST) registration is necessary for companies and people with annual revenue of more than ₹20 lakh in most regions. Even entities delivering goods for intra-state sale must register for GST. The Goods and Services Tax Act lay down other criteria that must be fulfilled for registration. Ensure that you understand the conditions and obtain GST registration within a month of starting your business.Udyog Aadhaar registration:
You can apply for this license if you want to run a company that classifies as a micro, small, or medium business. The eligibility criteria for Udyog Aadhaar registration is based on the plant and machinery investment for production entities and only machinery investment for service providers.
Once you procure this license, your company can apply for government benefits and subsidies for small enterprises.Import-export code:
The Directorate General of Foreign Trade (DGFT) mandates that anyone who deals with importing or exporting goods or services from India has to get an Import Export Code. Your company also has to have a Permanent Account Number (PAN) and a bank account so it can receive the import export code.Shop and establishment act license:
The Shops and Establishment Act, 1948, aims to control unfair business practices such as long working hours, child labour, salary and wages, worker health and safety, etc. State governments provide licenses and registrations under the Shop and Establishment Act according to the regulations prevalent in that area. Thus, you can get in touch with the concerned authority in the state where your company is located for these licenses.FSSAI license:
If you have a food business, then you have to get licenses issued by the Food Safety and Standard Authority of India or FSSAI. FSSAI is a government undertaking that ensures that food business and products are safe and standardised. If you are starting a food business of any kind, whether it be a service or product-based enterprise, you have to obtain an FSSAI license. Today, you can apply for a food licence online, as well.
Apart from the types of licenses mentioned above, you might also have to apply for others, depending on your business. For instance, you might have to opt for a trading license and registration, regulatory permission from the Reserve Bank of India or the Insurance Regulatory and Development Authority of India (IRDAI), etc.
HDFC Bank recognises the challenges entrepreneurs face while acquiring capital. Thus, HDFC Bank has created MyBusiness, a one-stop solution that gives you easy access to loans, digital solutions and provides you with the essential knowledge you need to run your business. With HDFC Bank MyBusiness, you can scale up, expand your operations, and nurture your business.
To learn more about the various products and services at HDFC Bank that can benefit your enterprise, you can check out the MyBusiness page here.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. HDFC Bank recognises the challenges entrepreneurs face while acquiring capital. Thus, HDFC Bank has created MyBusiness, a one-stop solution that gives you easy access to loans, digital solutions and provides you with the essential knowledge you need to run your business. With HDFC Bank MyBusiness, you can scale up, expand your operations, and nurture your business.