Do You Have These Business Licenses?


Planning to start up a business? With a country developing at such a fast pace and economy growing enormously, you can have a great opportunity to venture into one. However, you mustn’t neglect the fact that along with great opportunities also come great challenges. With multiple new businesses coming up every day, you may not believe the statement, but it’s true that India is one of those countries where starting off a business isn’t easy. So, what all do you need to start a business? Obviously, a big budget and an innovative idea! But, have you considered the license you require from the government and other regulatory authorities? Approval of a license from all the authorities present at the local, state, and central levels in India is not only mandatory, but also challenging. This is what makes it difficult to start up a business as there are various different licenses and approvals required before commencing any sort of professional operation. This blog lists down some of the basic licenses required in India for different types of businesses. Check from the list below the type of licenses and approvals you need for your business and get in touch with professionals like iDeal HR Services, a leading statutory government factory approval consultant in Hosur, who can help you get liaisoning, approvals, and certifications required for setting up your new business so that you can run it hassle-free.

Trade license

This license is important for all kinds of trades and businesses to confirm that the manner in which the business is being carried out complies with the relevant rules, standards, and safety guidelines. This license is provided by the municipal authority in charge of the place where the trade is conducted. However, the procedure and fees involved varies from location to location.

Industrial license

Regulated under the Industries Development Regulation Act 1951, and approved by the Secretarial of Industrial Assistance of the Licensing Committee, the industrial license is required by industries, small scale manufacturing industries, and projects affected by locational restrictions.

Factory license

Factory owners need to obtain the factory license under the provision of respective State Factories Rules. An application is to be made to the office of Chief Inspector of Factories in the concerned jurisdiction as per provisions of the rules of the state. However, the procedure, timeframe, and costs involved differ from state to state.

Shops and establishment license

As the name suggests, this license is to be obtained by businesses that involve any kind of premises where any kind of profession or trade is to be carried out. Certain states also require educational institutes and entertainment areas like hotels, restaurants, resorts, spas, etc. to procure this license. Other premises including activities of socializing or charities may also require this license. Check for the requirements within your state to see if your business falls under this category. However, there are certain exceptions to this license. For example, doctors, medical practitioners, lawyers, foreign news agencies, and the shops and factories registered under the Factories Act 1948 do not require this license.

Compulsory license

Under the provisions of Industrial Act 1951, there are many industries that require compulsory industrial licensing. These include industries involved with hazardous chemicals, alcoholic drinks, cigarettes, tobacco substitutes, electronic aerospace, defense equipment, industrial explosives, and the like. These compulsory licenses include land NOCs and approvals, operational approvals, revenue department documents, and government NOCs.

Import/Export license

Businesses involved with importing products that are prohibited or require permissible conditions for importing require the import license that is issued by the Director General of Foreign Trade (DGFT). This license is generally approved up till 24 months for capital goods and 18 months for raw materials, spare parts, and consumables. The import license comprises of a customs copy (for goods clearance) and a foreign exchange control copy (for opening letter of credit).

Similarly, the export license is required for exporting items that are controlled by Minimum Export Price, registration with specified authorities, and quantitative ceilings. The export license is issued by the DGFT for goods mentioned in the Schedule 2 of ITC (HS) Classifications of Export and Import items.

The DGFT issues a unique 10 digit Import Export Code (IEC) against a PAN number, which is valid for all branches, divisions, units, and factories.

Central/State excise license

Manufacturers or dealers of excisable goods need to register their premises with the Central Excise Department before commencing business, as per the Central Excise Act 1944. This registration application is to be made to the jurisdictional Central Excise officer.

Similarly, brands, whether locally produced or imported, also have to be registered with the Excise Department of that particular state. Permits need to be obtained from concerned Excise authorities for movement of excisable goods form warehouse for trading.

These are the very basic licenses required by businesses across the country. There are any more licenses you need to be sure of for your particular industry. Moreover, you must note that applying for licenses is a tedious, time-consuming, and expensive task. Also, your business may require more than one license, and also renewals of the same from time to time. To save yourself of the time and task, it is always advisable to hire professional consultants to take care of all licensing and renewing procedures lawfully. One such name is iDeal HR Services, the best statutory government factory approval consultant in Hosur.