Licenses

Mandatory requirements to fulfill for the food business

1. Health/Trade License
In India, to conduct business that deals in goods and services that affects the health of consumers at
large, the government mandates Health Licenses. Primarily there are two kinds of licenses

 Health Care License

 Health Trade License

Health Care Licenses are issued to the entities dealing in medical care to provide assurance of

authenticity.

Health Trade Licenses are issued by municipal corporation. This license works like a certificate

permitting the open business to engage goods and services that directly affect the health of the

general public.

Example:- restaurants, cafes, sale of milk and milk products, medical shops, manufacturing drugs,
and so on.

Documents For Obtaining The Health Trade License

 Payment proof of property taxes, fines, etc

 PAN/TAN

 Site/layout sanction plan

 Plan of premises

 Proof of ownership

 The latest copy of electricity and water bills

 Medical certificate

 Self declaration
  NOC from the commissioner of police/fire services department

 List of ancillary commodities(Necessities)

 Water testing report

 Sewer connection proof(A pipe which transfers the waste water this dhould take the

permission of govt)

Mandatory Documents For Health Trade License Renewal

 Copy of original Health License

 Identity proof of partners

 Proof of payment of property tax paid on premises

 Challan for the previous year

Eligibility Criteria For Obtaining Health Trade License

To obtain the license, the applicant must be 18 years of age and above, must have a clean record

and own a business which is permitted legally.

Renewal of License

The licenses are issued for a defined period, and the renewal date is also mentioned in the license.

The applicant must apply for renewal of the license prior to 30 days from the date of expiry. In cases

where the license restoration process is postponed, fine will be processed.

Fee can be found in Welcome to CDMA (telangana.gov.in)

Mandatory to have trade licence in food business

2. LIQUOR LICENSE 
The Liquor license is an authorization granted by a State’s Excise Department that allows people to
manufacture, transport, and sells alcoholic beverages within the state. The Liquor license authorizes
businesses to sell and market alcohol

What Documents are required for obtaining the Liquor License?

 Identity proof of the applicant

 Address proof of the applicant

 Address proof the premise used

 Affidavit Duly Notarized – Declaring actual Possession (No Litigation Involved)

 Physical Possession- (Approved by DDA/NDMC/MCD)

 Layout Plan

 License Fee – (May differ from time to time Circular)

 Security Amount (Refundable)

 Follows the Interior Design as Applicable rules

 NOC from the Fire Department

 NOC from Municipal Corporation

 Application with business details

 If an applicant is a company, list of directors, MOA and AOA

 Copy of latest Income Tax return

 Photograph of the authorized person

 An affidavit stating that the applicant has no criminal background

 An affidavit stating that the authorized person is not levanter when it comes to payment
of dues

 Refrigerator Invoice
Elucidate the Checklist to be kept in Mind while Filing a Liquor License

 Businesses that are authorized to sell.

 Types of liquor that may be sold.

 Who can sell the alcohol?

 Quantity of alcohol that may be sold at a time.

 Who can apply for a liquor license?

 Costing of License.

 Documentation required for obtaining the license.

What do you mean by Revoking of the Liquor License?

The State Excise Authorities has the power to revoke the license on encountering one of the following
events:-

1) Liquor served on dry days(Dry days are observed on national holidays, major
festivals and during elections in India)
2) Liquor served after violating prescribed rules and regulations
3) Liquor served to minor

3. Fire Department

How To Get No Objection Certificate (NOC) From Fire Department

For this, the premises need to register for NOC from the State Fire Department before
the building construction starts. Applications for registration can be found online on the
state government website. After having all the safety equipment in place, you must invite
the Chief Fire Officer (CFO) for inspection and get the NOC. There is no such fee
required for NOC as of now. 

4. GST Registration
Under Goods And Services Tax (GST), businesses whose turnover exceeds the threshold
limit of Rs.40 lakh or Rs.20 lakh or Rs.10 lakh as the case may be, must register as a normal
taxable person. It is called GST registration.
For certain businesses, registration under GST is mandatory. If the organization carries on
business without registering under GST, it is an offence under GST and heavy penalties
will apply.
GST registration usually takes between 2-6 working days

Who should obtain the GST registration?


o Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.)
o Businesses with turnover above the threshold limit of Rs.40 lakh or Rs.20 lakh or
Rs.10 lakh as the case may be
o Casual taxable person / Non-Resident taxable person
o Agents of a supplier & Input service distributor
o Those paying tax under the reverse charge mechanism
o A person who supplies via an e-commerce aggregator
o Every e-commerce aggregator
o Person supplying online information and database access or retrieval services
from a place outside India to a person in India, other than a registered taxable per

documents Required for GST Registration

 PAN of the Applicant
 Aadhaar card
 Proof of business registration or Incorporation certificate
 Identity and Address proof of Promoters/Director with Photographs

 Address proof of the place of business

 Bank Account statement/Cancelled cheque
 Digital Signature
 Letter of Authorization/Board Resolution for Authorized Signatory

Am I allowed to submit applications for multiple GST registrations?

If a business operates from more than one state, the taxpayer should obtain a
separate GST registration for each state. For instance, If an automobile company
sells in Karnataka and Tamil Nadu, he has to apply for separate GST registration in
Karnataka and Tamilnadu respectively.

 What is a GST identification number or GSTIN?

Each taxpayer is allotted a PAN-based 15-digit Goods and Services Taxpayer

Identification Number (GSTIN) in every state that they operate. It is obtained as a
part of the GST registration process. Once the GST registration application is
verified and passed by the GST officer, a unique GSTIN is assigned to the business.

 How long can I wait to register under GST?

 Any person must get a GST registration within 30 days from the date when they
become liable to obtain GST registration.

 What if the GST registration application gets rejected?

If an applicant finds that their GST registration application was rejected, they will
get an option to reply to the rejection letter. However, if they want to make a new
GST registration application, then they must wait for a final rejection, which will
take about 10 days.

What happens after obtaining the GST registration?

After obtaining the GST registration successfully, the taxpayer will get a GST registration
certificate in Form GST REG-06 and gets a valid GST Identification Number. One will be
eligible to avail input tax credit, raise GST-compliant invoices and must start filing GST
returns monthly or quarterly, as the case may be
Documents Required for GST Registration
A. Proprietorship
PAN Card and address proof of proprietor

B. LLP

 PAN Card of LLP 

 LLP Agreement 
 Partners’ names and address

C. Private Limited Company

  Certificate of Incorporation
 PAN Card of Company
 Articles of Association, AOA 
 Memorandum of Association, MOA
 Resolution signed by board members
 Identity and address proof of directors
 Digital Signature

The following can be shown as proof of address of a director:-

 Passport 
 Voter Identity Card 
 Aadhar Card 
 Ration Card 
 Telephone or Electricity Bill 
 Driving License 
 Bank Account Statement

Add One can use a PAN Card, Aadhar Card as identity proof. 
5. Shop & Establishment Act
When a business entity employs people who may be full-time employees, casual
workers, contract-based etc, to regulate the work conditions and ensure the workers’
rights are protected, it is compulsory to get itself registered under the Shops and
Establishments Act, informally called Shop Licence. This license is city-specific in
nature.

Documents Necessary for Shop & Establishment Act License

1. Passport size photo of the applicant 

2. Photo of the shop along with the owner 
3. List of management employees and directors, if applicable 
4. Details of employees, their wage rates and the company 
5. Address proof of establishment 
6. Affidavit to be shared with the applicant

Registration and licenses required for Startups

Some of the licenses required by some start-ups are:-

 Business Licenses.
 Fire department licenses (for flammable required things).
 Air and Water pollution control permit (for the wastage producing
factory).
 Sign permits.
 Food Permits.
 Sales Tax license.
 State licenses.
 Country permits.
he following are the many types of business structures seen in
India:

 Private Limited Company

 Public Limited Company
 One Person Company
 Partnership Firm
 Limited Liability Partnership
 Sole Proprietorship
Private Limited Company😊
Company listing under MCA records(Ministry of corporate affairs)
2. Provides protection from personal liability as well as security against other
losses & risks(Personal money)
3. Low tax rates as compared to sole proprietorship firm
4. Directors and Shareholders can be separated(Shareholder :- The person who
holds shares)

5. Attracts more customers

6. Easily obtains bank loans and good investments from trustworthy investors
7. Provides liability insurance to safeguard your company's assets.
8. Greater capital contribution diversity and stability
9. Enhances the ability to become large and expand

# Minimum Two Directors(Directors-senior staff of company)\

A private limited company must have at least two directors, with a maximum of
fifteen. A minimum of one of the company's directors must be a resident of
India.
If you have only one director you can go with one company registration
One Person Company Registration (OPC) in India is one of the simplest forms
of corporate entities to manage in case you are a single owner to run the
business
A One Person Company (OPC) is formed when only one person serves as both
the director and the shareholder of the business.

One Person Company Registration provides various benefits beyond sole

proprietor firm. The legitimacy of your business firm is enhanced by having a
registered company under MCA. It assists your business in the following ways:
1. A single owner can incorporate company
2. Unlike Sole proprietor firm, Your company name is secure and can not be
copied by others
 3. Less compliances
4. Limited liabilities of its director
5. Suitable for Banking loans, credits
6. Less Income Tax Rate as compare to sole proprietor
7. No intervention from any third person can be involved
8. Ownership easily transferable to nominee in case of death of owner
Eligibility