Trade License

Types of Business Registration in India

When launching a business, ensuring compliance is of the utmost importance. Understand which licenses and authorizations are necessary to launch your company.

Getting started is the first step toward accomplishing anything. An Indian startup isn’t quite a fairy tale, but the country has made significant progress in recent years, making it much easier for entrepreneurs to start the business. This section will discuss the types of licenses and registrations required for different types of businesses in India. No matter how big or small your company, obtaining a permit is a need. Businesses in India, like in any other country, are needed to seek and renew various business licenses and permits.

However, obtaining a license can be difficult and complex, especially for small enterprises with few resources. In India, obtaining a business license depends on various factors, such as the business’s size, kind, industry, and jurisdiction. In this post, we glance at some of the company licenses and registrations that are the most typical and easiest to acquire.

What Is a Business License In India?

Purchasing a business license grants the buyer the legal authority to start and run a specific type of business within the license’s jurisdictional scope. It is a form of government-issued license allowing a corporation to do business. As a part of starting a business, you should determine whether or not you are required to have a license because some types of companies do not have this requirement.

However, you are liable for fines or even forced to close your company if you do not have a license. Some businesses require licenses from multiple jurisdictions; others don’t need any. The location of your business will affect the type of license you require and where you can get it.

Business License Registration In India

In India, there are many different kinds of business licenses. However, the most common ones are classified into the following categories:

  1. Business Registration

Most Indian enterprises are founded as sole proprietorships or partnership registration, which do not require formal registration with the government at the national level. The Corporate Affairs department governs companies’ registration procedures and limited liability partnerships. Businesses with annual revenue exceeding Rs.20 lakhs should register as a limited liability partnership or a corporation. Once an LLP or corporation is registered, the business will have its legal existence, and the investors will be protected from financial losses. As a result, the business would be more easily transferable, and the organization would continue to exist. Consequently, consulting an expert and setting up an LLC or corporation are essential steps before launching a firm.

  1. Registration for Goods and Services Tax, GST

There is a mandatory registration requirement for all businesses and people with a combined yearly sales of more than Rs 20 lakhs for most states and Rs 10 lakhs for the Special Category State. In addition, each supplier of goods involved in interstate supply must do new GST registration online, regardless of turnover. In the first 30 days after beginning a firm, every entrepreneur should learn about the requirements and register for the Goods and Services Tax, GST.

  1. Registration for the Udyog Aadhaar

Starting a small business, such as a mini, minor, or medium-sized one, requires registering with the Small Business Administration, SBA. Udyog Aadhaar registration is based on a manufacturing company or service provider’s investments in plant and machinery or on the equipment they use to perform services. When a company obtains Udyog Aadhaar registration, it is eligible for various government subsidies and programs to support India’s small companies.

  1. FSSAI Certification or Registration

FSSAI verifies the safety and standards of food items countrywide. This five-letter term is sought for in the packaging or containers of food sold in restaurants, retail stores, kiosks, and modern trade outlets, as well as by individual customers. FSSAI categorizes licenses and registrations into three distinct groups:

  1. Code for Importing and Exporting

The DGFT Department requires that everyone who imports or exports products or services from India obtain an Import Export Code. The business must have a PAN and a bank account to receive an Import Export Code.

  1. Shops and Establishment Act license

When the “Shop and Establishments Act” was enacted, it was to regulate the operation of a business, including the hours of employment, the use of children, and wages. State governments offer licenses or registrations under the Shop and Establishment Act, which vary from state to state. Therefore, to obtain a Shops and Establishment Act License, it is necessary to contact the appropriate state government authority, which differs depending on the state where the company is located.

  1. Gumastha Permit

To operate a business in Maharashtra, individuals need to get a “Gumastha” license, which is issued by the state. To get it, you’ll need the following documents:

  • PAN Card
  • Address evidence or a landlord’s no-objection certificate 
  • Application letter to the Greater Mumbai Municipal Corporation 
  • Business Authorization Letter 
  • Partnership Government Fees
  • Memorandum and Articles of Association
  • Certificate of Incorporation
  • Director’s ID and Address Proof are required documents for a partnership firm.
  1. Other Permissions and Registrations

Particular businesses involving insurance, defense-related services, financial services, broadcasting, etc., require permission from regulatory agencies like IRDAI, Reserve Bank of India, etc. In addition, a company might be required to acquire permission from the fire service, the environmental control board, or even the local hospital system. Ultimately, it all comes down to what kind of business you want to start and run. Before launching a business, review its legal and regulatory needs with a professional.

Documents Required For Business License In India

The documentation requirements may vary depending on the type of authority or business. To complete the business registration process, the following documents must be provided:

  • Pan Card
  • Driving License/ID/Aadhaar Voter’s card
  • Passport
  • Bank statement
  • No-objection letter from the landlord
  • Lease Agreement or Rent Agreement
  • Authority Letter of Business
  • Articles of association and Memorandum Of Association
  • Co-ownership Agreement


This blog offers India business license advice – Businesses that manage or provide security or safety, broadcasting offices, financial institutions, and defense services, for example, need to be licensed and registered with government authorities like IRDAI, the Reserve Bank, fire stations, RTO, and pollution control boards, and so on. Therefore, everything is determined by the work you will do in the future. Consult with a Vakilsearch before beginning a business in India to learn about the legal requirements for getting a business license and permission.

Read more,


Back to top button


Remove Adblocker Extension