Small businesses are however growing rapidly in today’s world. Every person has a unique idea in order to enter into entrepreneurship and the making of profits. If a person plans in order to establish his small business needs then there is a requirement of certain registrations and the licenses. Fulfilling the legal requirements is thus the first step which is required towards a lawful progress. Many of the businesses fail due to non-compliance with the legal rules and regulations and they land into a pit of huge penalties and legal proceedings. This could, however, hamper the growth and then the entrepreneur will have to lock down his startup. Consulting of legal professionals for the necessary registrations and the licenses saves time to the great extent. Getting registered and then acquiring the license are two different things. We first are required to register in order to get the license permit.
Related Topic: Small business ideas in India
Registration and license requirement
This may thus differ from state to state and the rules and regulations but some are common-
Register business name– the first and foremost step is registering your small business under a fictitious name.
State Business license– Tax collection is the purpose of every state. In order to keep a regular check on sale and the purchase transactions and tax amounts, state governments have made this license mandatory for every business. The state governments issue a license only after verifying few documents. Every small business whether it is dealing in apparel, food, consumer goods, sports, electronic devices and the like needs license permit.
Tax registration– GST registration is thus compulsory in order to avoid tax penalties. However, different registrations are thus required for different licenses. You cannot get your business registered with one department only. The businessman is required to apply for every registration which your small business is eligible for.
Fire Department License– If your business deals with something flammable material and it is thus open to the public, fire department permit becomes essential. Some states have made it mandatory. While in other states this licence is made as an option, fire departments merely pay periodical inspection visits in order to check whether your business is following fire safety rules on not? Businesses like- restaurants and where the people gather frequently require such license permit.
Air and Water pollution Permit– Businesses dealing with manufacturing process that are using natural resources need a permit from the environmental department. This should however be done before constructing any building because the environmental department may raise an issue later.
Sign permit– Sometimes you may have to face sign ordinances. Sign ordinances include size, lighting, location and the type of sign which you can use outside your business premises.
Health Department permits– Food selling startups need this permit from the state or the central authorities. Before issuing a license, government authorities would surely inspect the quality of food items.
Registrations and licenses thus elevate goodwill of the business as people tend to choose those who have the government approval. It also attracts the investors in order to invest in your business.