Registration under Various Law
Well begun is half the job done. Starting a business in India is not an easy job, but India has made a great progress in the recently and made starting a business, very easy for Entrepreneurs. We will be looking at the most common referred registrations and licenses mandatory in running a business in India.
There are various licenses depending on the type of business and changes from business to business based on various determining factors like the number of employees employed in the entity, the sector in which the entity operates, the type of business the entity in involved, the place of business etc. In this brief article, we will be looking at some of the common licenses and registrations required for a business. To determining the various requirements for your business, get in touch with GAB & Assocaites.
Company or LLP Registration
Many businesses in India are incorporated as proprietorship concerns or partnership firms which requires no registration from the Central Government. The Ministry of Corporate Affairs regulates the registration of a company as well as LLP. It is advisable for entities having plans of operating the business with an annual turnover in excess of Rs.20 lakhs to incorporate as a LLP or a Company.
Company and LLP have separate legal entity which means the promoters of the business will not have unlimited liability. By adopting a LLP or Company form of business, the same will become easily transferable and would also have perpetual existence. Hence, before incorporating a business, it is best to consult an expert to get the best of advice.
Entities having an aggregate annual turnover in excess of Rs.20 lakhs in most State and Rs.10 lakhs in Special Category States are mandatorily required to obtain Registration under Goods and Service Act, 2017. Further, any person involved in supplying intra-state goods is also compulsorily required to obtain GST Registration, irrespective of the turnover achieved. In addition to the given criteria, various other criteria have also been provided under the GST Act, establishing the criteria’s for GST registration. It is important for all entities to understand the criteria’s and to obtain GST registration.
Udyog Aadhar Registration
Udhyog Aadhar registration is available for entrepreneurs who want to set up and operate a small scale business – MSME. The registration criteria under Udhyog Aadhaar is based on the investment deployed in plant & machinery by a manufacturing concern and for service sector the investment deployed in equipment.. Udyog Aadhaar registration opens ways for various subsidies and schemes specially provided by the Government.
FSSAI License or Registration
“Food safety and standard authority of India (FSSAI)”, has the responsibility to ensure the safety of and use of standardize food products nationwide. Restaurants, retail stores, modern trade outlets, kiosks and consumers alike look for this five letter word in their food packets or containers.
The license or registration is divided into three categories under FSSAI, namely:
• FSSAI Central License
• FSSAI State License
• FSSAI State Registration
Import Export Code
Any entity involved in business import or export of goods/services from or to India is mandatorily required to obtain Import Export Code from the DGFT Department. In order to avail the Import Export Code, it is compulsory for the business to have a current account with a bank and a Permanent Account Number.
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.
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