10 Basic Legal & Regulatory Registrations for Every Business in India


10 basic legal requirements for every business in india

Are you all set to dive right into your Start-up? Or are you already running a successful business but still not, sure if you have obtained all regulatory registrations?

Here is a list of 10 essentials business registrations that your business will need to keep your legal and regulatory compliance on point!

1. PAN (Permanent Account Number) and TAN (Tax Deduction Account Number)

The quintessential of all the registrations that are required by any business irrespective of it is a Company, LLP, Partnership Firm or even a Hindu Undivided Family, is to have a PAN and TAN in the name of the business or in the name of the individual in case of Sole Proprietorship (in whose name the transactions are to be made). PAN and TAN are two ten-digit unique alphanumeric numbers issued by the Income Tax Department. Every person who deducts or collects tax at source has to apply for the allotment of TAN. As per the recent changes, AADHAR can be used in place of PAN for filing IT Returns but PAN is still essential when it comes to making payments exceeding Rs 50,000.

2. Trade License / Shops and Establishment License

Trade License and Shops and Establishment license are to be obtained from your municipal corporation, or panchayat, depending on the jurisdiction of your business for setting up of any shop or commercial establishment and running a trade (the municipality usually issues a list of trades which mandatorily needs a trade license). Shops and Establishment license is to be obtained by any establishment having more than 10 employees from the labor commissioner.

3. GSTIN Registration

Under the GST regime, tax is payable if the turnover of Rs.20 lakhs (Rs. 10 lakhs for North Eastern states & Special Category States) is achieved. All business liable to pay GST shall register and obtain GSTIN – a unique Goods and Services Tax Identification Number (GSTIN).

4. Company / LLP / Start-up/ Partnership Firm Registration

Any business entity wanting to start a business in India as a Company or Limited Liability Partnership, shall register itself under the Ministry of Corporate Affairs.  A Partnership firm may opt for registration of its partnership deed under the Indian Partnership Act 1932, and Start-ups may opt for registration under Start-up India Scheme to avail the benefits granted by the Government under various laws, although it is not mandatory.

5. EPF Registration

Employees Provident Fund registration is mandatory for all establishments having 20 or more persons (10 persons in some states in India). In such cases, employees with monthly income less than Rs 15000 shall be mandatorily covered under EPF.

6. ESI Registration

Employees State Insurance Registration is to be obtained by all establishments (excluding Factories) in ESI notified areas, having more than 10 employees. Employees earning less than Rs 21,000 per month are covered under this scheme. Any establishment that is exempted from obtaining ESI registration shall obtain an Exemption Certificate.

7. Professional Tax Registration

Professional Tax is the tax levied by the local municipality on the salary paid to every individual. The tax rate varies from state to state.  For payment of the professional tax, most states issue a registration certificate or an enrollment number, which will be used as a reference for remitting the tax.

8. Contract Labour Registration

Contract Labour license will be applicable if the business – ie Principal Employer, employs more than 10 contract labors. Contract labor registration is to be obtained by both the Principal Employer and Contractor from the Labour Department of the concerned State.

9. Pollution Consent

Pollution Consent is required to be obtained by business falling within Red, Green and Orange category of industries notified by the Pollution Control Board. Pollution Consent is of two types, Consent to Operate (CTO) and CFE (Consent for Establish). Consent to Establish is to be obtained before construction/ set up of the establishment and Consent to Operate is to be obtained after the construction/ setup but before the commencement of operations. This certificate will be subject to renewal as mentioned on the consent.

10. Motor Vehicle Registration

Every business entity who wishes to own vehicles in its name shall obtain, Registration Certificate of the vehicle, Pollution Certificate (not applicable for vehicles purchased less than a year), Fitness Certificate and pay Road Tax.

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