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Licenses

Definition

Licenses and permits are issued by the government of a certain municipality or state to allow firms to operate. For a specific individual to start a business in India, obtaining a business license is necessary. This is an important and needed document issued by a municipal council. Businesses are allowed to engage in defined activities in a given area. These licenses and permits are also used to check on businesses to determine whether or not they are following the law’s standards.

Service Planing

Importance

  • Business licenses hold companies answerable for their actions and behavior.
  • Professional licenses point toward the level of skill and knowledge a particular professional holds.
  • To recognize your business and ensure you are responsible for your actions.
  • To protect public safety and health.
  • To monitor your finances for tax purposes.

Benefits

  • It creates an opportunity for passive income.
  • It creates new business opportunities.
  • It reduces risks for both parties.

Eligibility

  • The applicant must be at least eighteen years old.
  • There should be no criminal records on the candidate.
  • The company should be lawful to operate.

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Subcategory

License

1. Udyog Aadhar Registration

The Udyog Aadhaar certificate is now known as Udhyam. Typically, the Micro, Small, and Medium-Sized Enterprises receive it (MSME). It is a twelve-digit unique identification number that is required for micro, small, and medium-sized businesses and is provided to MSMEs after their registration.

Need

  • Offers subsidised interest rates and access to loans without guarantees.
  • Having access to funding for attending international expos.
  • Possession of special government subsidies.
  • he capacity to apply for microloans and other similar programmes.
  • Simpler access for businesses to government services.

Document Required

  • Personal Aadhaar number.
  • Name of owner.
  • Category of applicant.
  • Name of business.
  • Type of organisation.
  • Bank details.
  • Key activity.
  • National Industrial Classification code.
  • Aadhaar card or enrolment ID no.

2. Gumastha Licence

It is an application for business registration. You will be given permission to conduct business at a certain location with the help of this licence. Within 30 days of opening for business, you must register for a Gumasta licence.

Need

  • It gives the business the legal right to operate.
  • It serves as evidence that the business is legitimate and has a legal entity.
  • It facilitates the process of applying for business loans.
  • Most banks only open current bank accounts for people who have gumasta licenses in several states.

Document Required

  • Aadhaar card/ Pan Card/ photo.
  • Address proof (like Electricity bill).
  • Application Letter in the prescribed format.
  • Authority letter for business.
  • Proof of ownership of Property.

3. FSSAI Licence

The Food Safety and Standards Authority Act is a legislation that protects food laws and establishes science-based standards for food to regulate its production, storage, distribution, sale, and import, as well as to ensure food availability for human use and address other food-related issues.

Need

  • It guarantees better client retention, fosters consumer trust, frees the company from legal entanglements, and promotes business growth and higher profits.

Document Required

  • Photo of Food Business Operator.
  • Document for Identity Proof like Ration Card, Voter ID Card, PAN Card, Driving License, Passport, Aadhaar Card, Senior Citizen Card, Department Issued ID.
  • Supporting Documents (if any):- NOC by Municipality or Panchayat, Health NOC.

4. Provident Fund Registration

A provident fund is money that is held by the firm and then returned to the employee at retirement. This assures that every employee will have access to money in their retirement and that they will have their money in their hands.

Need

  • Every employee needs it since it aids in planning for old age, assures the increase of employees' pay because it is a tax-free interest amount, and provides the availability of funds in the event of serious medical emergencies.

Document Required

  • Bank statement or cacanceledheque of entity.
  • Digital signature of Director, Partner, or Proprietor.
  • Leased, hired, or rented agreement (if applicable).
  • PAN card of Partner, Director, or Proprietor.
  • Aadhaar card of Director, Partner, or Proprietor.
  • GST certificate or shop and establishment certificate or any license issued for the establishment by the government.
  • Address proof like water bill, electricity bill, or telephone bill of the registered office (must not be older than two months).

5. Import Export Code

A key company identifying number required for exporting from or importing into India is an Importer-Exporter Code (IEC). Unless specifically exempted, no person may export or import without first obtaining an IEC.

Need

  • Global Market Reach.
  • Online Registration.
  • Simple Document Requirement.
  • PAN Based Registration.
  • Life Time Validity.
  • Benefits of Scheme.
  • No Compliance.
  • No Annual Maintenance.

Document Required

  • Individual’s or Firm’s or Company’s copy of PAN Card.
  • Individual’s voter id or Aadhaar card or passport copy.
  • Individual’s or company’s or firm’s cancel cheque copies of current bank accounts.
  • Copy of Rent Agreement or Electricity Bill Copy of the premise.
  • A self-addressed envelope for delivery of IEC certificate by registered post.

6. ISO Registration/Certificate

The International Organization for Standardization (ISO) certification is a stamp of approval from a third party agency confirming a corporation adheres to one of the global standards it has created and made public.

Need

  • Creates a more effective and efficient operation.
  • It helps to increase the level of customer satisfaction and relation.
  • It reduces audits and also the expenses.
  • It helps in the improvement of the marketing process.
  • Enhance the motivation of employees as well as awareness and morale.
  • It promotes international trade.
  • Helps in increasing the profit.
  • It helps in the reduction of wastage and increase productivity.
  • It is a common tool for standardization.

Document Required

  • Copy of PAN Card.
  • Passport Sized Photos.
  • Copy of Aadhaar Card/Voter Identity Card.
  • Two copies of Sales Bill/Purchase Bill.

7. ISI Registration

The Indian Standards Institute, or ISI, is a certification programme run by the BIS (Bureau of Indian Standards), which attests to a product's compliance with BIS standards and safety.

Need

  • A product with an ISI mark allows consumers to confirm its quality.
  • An ISI-marked product reduces the company's losses and product rejection.
  • A product with the ISI certification is guaranteed to perform better and last longer.

Document Required

  • Registration certificate of the company.
  • Receipt of Property tax.
  • Insurance policy.
  • If the property is rented, then submit the rent agreement.
  • Telephone bill.
  • Electricity bill.
  • Bank statement.
  • Aadhaar card of the directors of the company.
  • Voter ID card.
  • Driving License.
  • Copy of test reports.
  • List of Manufacturing machinery.

8.ESIC License

Employee State Insurance, or ESI, is a programme administered by the Employee State Insurance Corporation (ESIC), a legally independent agency housed within the Ministry of Labour and Employment of the Government of India.

Need

  • It provides Medical benefit.
  • Sickness benefit.
  • Maternity benefit.
  • Dependants benefits.
  • Disablement benefits.
  • Other benefits.

Document Required

  • Copy of pan of company/partnership/firm.
  • Copy of Certificate of Incorporation /Registration certificate.
  • Copy of Bank Statement.
  • Copy of all licenses issued in the name of establishment.
  • A cancelled cheque.
  • Copy of electricity Bill.
  • Copy of rent/ lease agreement Copy of pan and voter id of directors/partners.