Starting a business in India requires a set of permission and licenses for its smooth functioning. Fulfilling the legal formalities is one of the first steps which startups should never ignore. Otherwise, there may be huge penalties and other legal complications which will hamper the name and growth of the company.
Depending on your business, there are certain licenses and permissions that are required. Government agencies can fine or shut down a business that operates without a licence.
Business Licence: A legal document that grants you the right to operate a business in your city. It is a permit which indicates that the company has the approval of the government to operate.
Various Kinds of Business Registration: The various kinds of business registration in India are-Private Limited Company, One Person Company, Partnership Firm, Public Limited Company or an NGO/Trust. A business will have to get registered under any of the above type o structure.
Safety Registration/Fire Permits
Depending on the type of business you intend to operate, you may need to get an inspection and permit from the local fire department.
GST Registration:
It has now become mandatory for all businesses to get their GST registration done. It needs to be obtained within 30 days of business incorporation, otherwise, the startup will be subject to heavy penalties.
MSME Registration
MSME Registration can be obtained by micro, small and medium enterprises in India to enjoy few subsidies and benefits in terms of loans, taxation, and other schemes.
Startup India Registration
When the business comes under the definition of a startup as per the DIPP Notification, it can get its Startup India registration done. There are a few criteria for it, for e.g., it has not been more than 10 years from the date of business registration. The annual turnover of the entity for any financial year since its registration has not exceeded Rs. 100 crores.