Obtaining business permits and licenses is one of the main requirements when starting a company in India. All enterprises registered here have to obtain certain permits and, depending on the business activity developed by the company, additional licenses can be required. The procedure for obtaining business or trade licenses in India can vary depending on the company’s business form, the number of employees, or the Indian location in which the company will operate. Our team of specialists in company formation in India can offer consultancy services related to the procedure of obtaining permits for local businesses.
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Licenses issued for specific activities and trades in India
Depending on the business activities conducted by investors starting a company in India, businesses may need permits issued by the fire department, construction permits, health licenses, and others. Our team of consultants in company registration in India can offer in-depth advice regarding other types of business licenses available here.
Just like in other countries, when starting a company in India, you can operate in various industries. The same applies to carrying out certain trades. In both cases, there are various business and trade licenses to be obtained in India, no matter if you are a local or foreign investor.
Here are the main sectors in which specific Indian business licenses are required:
- the sale of goods in shops and establishments is subject to the shops and establishment license;
- recruitment agencies must obtain a labor license in India;
- operating a factory in India also requires a factory business permit;
- the FSSAI license – the Food Safety and Standard Authority of India (FSSAI) provides licenses for all local operators such as restaurants, outlets, retail stores, and other similar businesses;
- the import-export code – any business that is involved in trading activities in India is required to obtain this license.
When it comes to the trade license in India, it must be obtained by:
- online companies;
- sole traders with professions they can carry out by themselves.
Our Indian company formation agents can offer more information about these business permits.
Documents required to obtain a business license in India
No matter if you intend to apply for a business or trade license in India, the documents to provide to the relevant authorities imply:
- the Permanent Account Number, which is the equivalent of a tax identification code for natural persons;
- a valid ID or passport in the case of foreign citizens;
- the statutory documents in the case of companies filing for specific business licenses in India;
- proof of legal address in India.
Please note that in the case of companies, a person or representative is usually designated to apply for the necessary business permits in India. The appointed people must not have been accused of major crimes to represent the enterprise.
Feel free to address our company formation specialists in India for support in gathering the necessary documents.
How to apply for a business permit in India
There is no general procedure for applying for an Indian business license, as each authority has its own regulations. The same applies to the issuance dates and renewal conditions if they apply. However, you can rely on our local specialists who can guide you during the application procedure.
General business licenses in India
The procedure for obtaining permits and licenses can vary on the above-mentioned factors, but, as a general rule, those who want to register a company in India will need compulsory registration permits for taxation, as presented below:
- Udyog Aadhar Registration – this is a type of permit available for micro, small and medium-sized enterprises and the eligibility is given by the company’s investments in plant and machinery;
- Goods and Services Tax (GST) Registration – the term refers to the registration for value added tax, known in India as GST, a requirement which is also imposed on natural persons operating in their own name on the supply of goods on the Indian market.
How many companies operate in India?
In the 2023 – 2024 fiscal year, more than 185,000 companies were incorporated in India. Specifically:
- at the end of March 2024, there was a total of 2,663,016 companies registered in the country;
- 64% of them or 1,691,495 businesses were active;
- 71% of companies operated in the services industry, 23% in the industrial sector, and 6% in agriculture.
You can also rely on our accountants in India for assistance. They can help you set up the payroll for your company in India.
Businessmen are invited to address our team of representatives, who can advise on how to form a company in India and who may offer tailored assistance on the compulsory permits available for a specific type of activity carried out on the Indian territory.