Types of India Business License in 2024

• Securing an India Business License is imperative for enterprises of all scales, be it expansive corporations or modest startups. Much like in any other country, businesses operating in India are obligated to obtain a variety of licenses and permits, periodically renewing them as necessary. However, navigating this process can prove intricate and bewildering, particularly for small businesses grappling with limited resources. The procedure for obtaining a business license in India varies based on specific criteria such as business size, type, sector, geographical jurisdiction, among others. For those looking to register company in India, understanding and fulfilling these requirements are paramount for seamless operation within the legal framework. 

Types of India business license 

Company license 

• In India, the registration of companies and limited liability partnerships (LLPs) falls under the jurisdiction of the Ministry of Corporate Affairs. Company registration grants businesses perpetual existence, a distinct legal identity, and limited liability protection. This facilitates systematic growth and expansion, especially as turnover surpasses predefined thresholds. Under the Companies Act of 2013, various forms of companies exist: 

• One Person Company (OPC): Introduced in 2013, OPC allows sole proprietors to register their businesses and conduct operations legally. 

• Private Limited Company (PLC): PLCs restrict shareholders to specific groups. 

• Public Limited Company (PLC): Unlike PLCs, public limited companies can invite the general public to invest as shareholders without preference for any particular group.  

• Tetra Consultants can assist you in securing company licenses to comply with regulatory requirements and facilitate your business operations seamlessly. 

GST registration 

• For businesses exceeding turnover thresholds or engaging in intrastate supply, registration under the Goods and Services Tax (GST) is mandatory in India. Various criteria dictate compulsory GST registration. Tetra Consultants can facilitate the process of obtaining India business licenses, including GST registration, ensuring seamless compliance with regulatory requirements. Our expert assistance extends to guiding businesses through the online registration process within specified timelines for new ventures. Additionally, we provide a comprehensive checklist of documents necessary for GST registration. 

Udyam registration 

• The registration process for small businesses in India is overseen by the Udyam online portal. Although registration with Udyam is not obligatory, it offers numerous advantages, including access to government loan schemes and subsidies. Eligibility for Udyam registration is determined based on composite criteria involving investments in plants and machinery, as well as business turnover. Tetra Consultants can guide you through the small business registration process, ensuring clarity and assistance at every step. From understanding eligibility requirements to navigating the online portal, we streamline the process for seamless registration. 

FSSAI registration 

• The Food Safety and Standards Authority of India (FSSAI) oversees the safety and standardization of food products across the nation. It mandates that all establishments selling food items, including retail stores, trade outlets, kiosks, restaurants, caterers, and cloud kitchens, obtain licenses or registrations under FSSAI and renew them periodically. The requirements for licensing or registration are categorized as follows: 

• FSSAI Basic Registration: Applicable for turnovers up to Rs 12 lakh. 

• FSSAI State License: Required for turnovers ranging between Rs 12 lakh and Rs 20 crore. 

• FSSAI Central License: Mandatory for turnovers exceeding Rs 20 crore. 

Import export code 

• Export and import businesses in India necessitate a distinct license called the Import Export Code (IEC), issued by the Directorate General of Foreign Trade under the Ministry of Commerce. Registration is attainable online via the DGFT website by submitting mandatory documents. Required documents include a PAN card, identity card with address proof, proof of business residence, and current bank account proof. 

• Tetra Consultants can help you in complying with all the required documents through their comprehensive business service packages which also includes corporate bank account opening. 

Retail store license 

• To open a retail store in India, a license must be obtained under the “Shop and Establishments Act.” Registration is granted by state governments, leading to varying guidelines across different states. This Act governs all shops and commercial establishments, ensuring compliance with regulations regarding child labor, working hours, conditions, wage policies, and more. Tetra Consultants can guide you through the process of obtaining the necessary license under the Shop and Establishments Act, ensuring adherence to state-specific regulations and seamless operation of your retail store. 

Trade license 

• With a plethora of easily accessible online business loans for MSMEs, numerous small entrepreneurs are gravitating towards the virtual realm as their preferred business platform. For small businesses, a sole proprietorship stands as the most convenient business structure due to reduced compliance requirements. Similar to traditional shops, a sole proprietorship can acquire a trading license under the Shop and Establishments Act. Tetra Consultants also extend their services to include offshore financial licenses, facilitating comprehensive support for entrepreneurs seeking to establish and grow their ventures seamlessly. 

Factories license 

• To operate a factory in India, registration is compulsory under the Factories Act of 1948, granted by the state government. Additional permits may be necessary based on the type of business and state regulations concerning safety, welfare, and labor standards. Tetra Consultants can assist you in navigating the registration process under the Factories Act, ensuring compliance with all requisite permits and regulations, thereby facilitating smooth operations for your factory. 

Documents required for India business license 

• Pan Card 

• Driving License/Voter ID/Aadhaar Card 

• Passport 

• Bank statement 

• An Address proof or a no-objection certificate from the landlord 

• Rent Agreement or Lease Agreement 

• Authority Letter of Business 

• Memorandum Of Association and Article of Association. 

• Partnership Deed 

Conclusion 

• At Tetra Consultants, we recognize the paramount importance of securing a India business license. Our expert guidance ensures a seamless journey through the intricate process of registration, renewal, and compliance with regulatory standards. Whether it’s obtaining licenses under the Shop and Establishments Act, Factories Act, or specialized permits like the Import Export Code, we provide comprehensive support tailored to your business needs. With Tetra Consultants by your side, rest assured that your business is equipped with the necessary licenses and permits to thrive in the dynamic Indian market, paving the way for success and growth. 

• Contact us to know more about India business license and our team will revert back in 24 hours.