How to Apply for the Necessary Permits and Licenses for your Business?

. 6 min read
How to Apply for the Necessary Permits and Licenses for your Business?

Licenses And Permits Needed To Start A Business In India

  1. Having a business license is a fundamental prerequisite in every country, making it compulsory for firms to conform to the regulatory framework affecting every nation.
  2. There are no exemptions on licensing for Indian companies.
  3. Here, companies are expected to obtain registration and business licenses and are also informed in advance for obtaining renewals.
  4. To conduct business in India, various formalities, licenses and permits have been established.
  5. Over the past couple of years, however, the Indian government has taken various steps to make it easier for entrepreneurs to start a company in India.
  6. The government has made the company incorporation process easier with the Digital India project, Startup India scheme, and MSME schemes.
  7. This article is a concise outline of the licenses and permits required to establish a new company in India.
  8. The first thing needed to start a company, before anything else, is to get the business registration completed.
  9. Business registration is carried out in the context of various forms of company systems.
  10. In India, the different kinds of permits and licenses, considering the market systems, are:
  • Company or LLP Registration License
  • GST
  • Udyog Aadhar
  • Registration and License FSSAI
  • Shop and Establishment Act License
  • License for Import Export Code
  • License for Fire Service
  • Air and Water Pollution Permit

Under each of the business models, a new corporation must be incorporated according to the size of its activities, the money spent, the number of members, and the liability associated with the enterprise.

Company Or LLP Registration License

  1. Most companies in India are started with no enrolment from the central government as a private limited company or a collaboration company.
  2. The registration of a corporation and LLP is regulated by the Ministry of Corporate Affairs.
  3. An LLP or company registration is required for entrepreneurs who have ambitions to run a firm with an annual turnover of more than Rs. 20 lakhs.
  4. The corporation would assume a certain legal nature if an organisation or LLP is enlisted, and the proponents would value the risk assurance of the powers.
  5. Also, the corporation would be readily transferable, and the firm would have an existence in perpetuity.
  6. To apply for this license, you have to follow the following process:
  • Obtain DSC
  • Apply for DIN
  • Name approval
  • Incorporation of LLP
  • File LLP agreement
GST banner on green background


GST registration is required for companies and individuals with cumulative annual revenue of more than Rs. 20 lakhs in most states and Rs. 10 lakhs in reserved category states. Also, any person delivering intra-state supply-related products is expected to obtain GST registration, irrespective of the turnover. Apart from the above requirements, under the GST Act, numerous other criteria have been specified to determine the requirements for GST enrolment. Within 30 days of starting a company, all businessmen need to recognise the requirements and receive GST registration. To apply for GST, you have to go to the GST portal ( and start the process of a new registration.

Udyog Aadhar

This is an enlistment extended to businessmen who need to establish a unit and run it as an individual enterprise, such as a micro, small or medium sized business. The qualifying requirements for Udyog Aadhar enrolment depend on the investments made by a professional organisation in plant and machinery produced by an assembly and production firm or investment in software and equipment. When Udyog Aadhar enlistment is obtained for an enterprise, the government may provide numerous subsidies and advantages to support small businesses and projects in India. To apply for Udyog Aadhar, you will have to visit the website register for the license.

Registration and License FSSAI

  1. The FSSAI is responsible for managing the protection and incarceration of food and food products across the country.
  2. In sustenance packages or holders, shopping locations, eateries, existing trade outlets, stalls, vendors, cafes, suppliers, importers and buyers alike check for this five-letter word, which indicates holding of the FSSAI license.
  3. Under the FSSAI, the permit or registration is classified into three primary types:
  • Central license
  • State license
  • Registration

Shop And Establishment Act License

  1. The Shop and Establishments Act was enacted to guide the leadership of the members’ successful long periods of service, youth work, salary payment, well-being and general power.
  2. The Company Permit is granted by the State governments and varies among States, under the Trade and Establishment Act License or Shop Act.
  3. Therefore, based on the State in which the undertaking is located, the State government specialist is involved in acquiring a Shop and Establishment Act Certificate.

License For Import Export (IE) Code

  • An IE Code is required for those who wish to import or export products/services from India.
  • In all relevant customs records, the IE Code must be listed.
  • Financial institutions require valid IEC registration to facilitate international transfers.
  • To obtain the Import Export Code, it is essential to have a PAN and a current account in a bank.
  • In addition to this, some enterprises require NBFC identification for non-banking firms or fin-tech firms, while broadcasting permits are required for digital broadcasting networks.

License For Fire Service

  1. A fire department permit is necessary for any organisation that works with flammable materials.
  2. It has also been made obligatory by certain countries.
  3. This license is particularly important for organisations that host customers, such as restaurants.

Air And Water Pollution Permit

  • For corporation deals with industrial operations using natural resources, the Environmental Department will require a permit.
  • Also, this authorisation is essential before the completion of any building to eliminate any issue being raised later by the environmental department.

Getting A Business License In India

  1. The method of acquiring a license depends on the type of the company, the position of the company, the nature of the company and its scale.
  2. To determine precisely what sort of business license is required to conduct operations in India, you have to contact a legal provider or a CA or CS and seek their guidance in acquiring the necessary permits and licenses for your business.
  3. Getting legal guidance on acquiring a business license will enable a better understanding of whether or not you need a specific business license.
  4. It would also save time and help ensure that no error is made in the course of securing a permit.
licence written on notepad with pen on black background

In Conclusion

  • The permits and licenses required to depend on the type of business you are going to run.
  • Therefore, before starting a company, speak to a lawyer about your business to determine and appreciate the legal formalities concerning business licenses in India.
  • The basic rule is that if you are establishing a company to serve the public, and there is a risk that harm will come to the public from your business, then you'll need to be licensed.
  • Such licenses can also represent the level of experience the company owner has in the industry.
  • Businesses may also require fire department permits, building permits, health trading licenses, among others, in India.

Also Read:

1) How To Reduce Your Taxable Income?
2) How To Stay Ahead of Your Competition?
3) How To Create Business Cards?
4) How to Claim LTDC for Your Business?
5) How To Find The Average Price Of Your Business Product In The Market?


Q. What is a license for a small enterprise?

A. A small business license refers to a legal certificate issued to a corporation for the smooth management of the company within a specified jurisdiction. If the company complies with local licensing conditions and taxes, the license is issued.

Q. Who needs a small business license?

A. A small business license must be acquired by any person or agency who is looking to conduct business in a specific area or has a business setup.

Q. How do you know if the company is approved in that territory?

A. The owner can consult with the region’s planning section to check if the company is allowed/approved in that jurisdiction.