Requirements of Licences & Permits for Foreign National & Foreign Companies after Incorporating a Company in India: India Business Entry

Repatriation of Funds by Foreign Investors from India | Corporate Lawyer in Delhi NCR | Corporate Lawyer in Delhi | Corporate Lawyer in Noida | Corporate Lawyer in Gurugram | FDI Attorney in Delhi NCR | FDI Attorney in Delhi | FDI Attorney in Noida | FDI Attorney in Gurugram | FDI Attorney in India | FDI in India | Foreign Direct Investments in India | FDI Legal Services in Delhi | FDI Legal Services in Noida | FDI Legal Services in Gurugram | FDI Legal Services in India | India Business Entry | Setup Business in India | Setting up Business in India |

Introduction to Business Setup in India or Setting-up Business in India
Entry into the Indian market by a Foreign National or a Foreign Corporation is an exciting undertaking, but it’s crucial to make sure you have all the licenses and licenses necessary to operate legally. Getting the necessary licenses shows that you are committed to operating legally and serves to safeguard your clients and your company’s interests. By acquiring the necessary licenses, you may abide by the law and win the respect and confidence of your customers, vendors, and business partners. It shows that you care about the security and well-being of your stakeholders, professionalism, and compliance. In India, it is quite easy to set up a company in India. Navigating the licensing process is complicated due to a number of factors, including knowing the pertinent regulations, completing the required papers, and paying any costs for setting up business in India. Although the rules for setting up Corporation in India by a Foreign National or a Foreign Corporation are a bit different yet they have to apply for the same licenses and permits at par with their Indian counterparts.

Licenses And Permits Required for Business Setup in India
Company or LLP Registration for Establishing Business in India
A common way to register a business is as an LLP (Limited Liability Partnership), which combines the advantages of both a partnership and a limited liability company. With minimal liability protection for the partners, it offers firms a flexible and less complicated structure. Compared to other corporate entity types, LLP registration has a number of advantages, including limited liability protection, management flexibility, and simplicity of compliance. Professionals, small firms, and startups who seek to combine the advantages of limited liability and partnership in their corporate form prefer it. A company’s incorporation into the legal system is known as company registration. It is an essential step to take in order to create a formal, legal corporate organization. Entrepreneurs who intend to operate a business with more than 20 lacks yearly revenue should register an LLP or a company.

GST Registration:
Businesses that must collect and pay GST to the government must register for GST (Goods and Services Tax) in order to get a special identification number. India has implemented a comprehensive indirect tax known as GST on the sale of goods and services.

FSSAI License or Registration
Businesses engaged in food-related operations in India must have a license or registration with the FSSAI (Food Safety and Standards Authority of India). The FSSAI is the regulatory authority in charge of guaranteeing food items’ safety and quality.
Three categories make up this license:
State Registration FSSAI
State License from FSSAI
Central FSSAI

Udyog Aadhar Registration
The Ministry of Micro, Small, and Medium Enterprises (MSME) of India issues Udyog Aadhaar registration, a special identification number. Its main objectives are to encourage and aid in the expansion of small enterprises and make it easier for them to access various government programs and perks. An outline of the Udyog Aadhaar registration procedure is provided below.

Import Export Code
Individuals or companies must register with the Import Export Code (IEC) to import and export products and services from India. It is published by the Directorate General of Foreign Trade (DGFT), which is a division of the Indian Government’s Ministry of Commerce and Industry.

The Shops and Establishment Act License
For companies operating within a certain jurisdiction, typically at the state level in India, the Shop and Establishment Act License is a statutory registration requirement. It is governed by the Shop and Establishment Act of the relevant state, which lays out rules regarding working conditions, employee rights, and other requirements for establishments including shops, businesses, and offices.

Gumastha license
Businesses operating in the Indian state of Maharashtra are required to register for the Gumasta License, commonly known as the Shops and Establishments License. The Maharashtra Shops and Establishments Act, which controls the working conditions, employment rights, and other guidelines for establishments like shops, businesses, and offices in the state, governs it.

Professional Tax Registration:
Certain Indian state governments demand a mandated registration known as professional tax registration. It is a type of tax imposed on people who are employed in certain occupations, professions, trades, or businesses. The tax, which is collected by the state government, funds the state’s welfare and development.
The applicant must submit an application for the registration certificate to the state tax office, which will calculate his taxes within 30 days after recruiting employees for his business.

Trade Licence:
To engage in business activities like as manufacturing, importing, and exporting, one needs a trade license. You need to apply and fulfil the requirements in order to be granted a trade license. Different regulations and application procedures could be applicable depending on the state where the company is based.
A trade license, sometimes referred to as a company license or shop license, is a legal document that authorizes the performance of a certain trade or business activity within the boundaries of a specified jurisdiction. In India, it is a prerequisite for establishing and running a certain class of businesses. A trade license’s main function is to control commercial activity and guarantee that it complies with the laws, regulations, and security precautions necessary to safeguard the environment, public health, and safety.

Trademark Registration:
The Trademark Act of 1999 permits trademark registration. It gives the owner exclusive ownership rights and forbids others from exploiting the mark for their own gain. After a trademark application has been approved, both the applicant and the brand are permitted to use the “TM” symbol. To safeguard the brand name, trademark registration is necessary in India.

Fire Department NOC
The Indian Fire Department issues a No Objection Certificate (NOC) as a protection against fire-related losses. After considering the impacted properties, fire assistance, and fire safety precautions, the NOC is provided. The evaluation’s findings must be applied to all fire safety specifications established by the Bureau of Indian Standards.

Conclusion
In Conclusion, obtaining the necessary licenses and permits is crucial for starting and maintaining a business. Legal compliance ensures that your business follows ethical business practices, abides by the law, and protects the public’s health and safety. Each license or permission serves a particular purpose, such as registering business entities, paying taxes, adhering to regulations particular to the sector, or ensuring workplace safety. To register their company, all business types must obtain specific licenses and permit from government bodies.
Authored By: Adv. Anant Sharma & Chandana Surthi

 

#anantsharma #mylawyersadvice #fdiinindia #foreigndirectinvestmentsindia #makeinindia #startupindia #corporateattorneyindia #corporatelawsindia #businesslawsindia #fdiinindia #businessattorneyindia #investmentsinindia #manufacturinginindia #exportsfromindia #importsfromindia #India