What licenses do I need to start a business in India?

The Shops and Establishments Act is a state law — each state has its own (Maharashtra Shops Act, Delhi Shops Act, Karnataka Shops Act, etc.) — regulating conditions of work in shops, commercial establishments, hotels, restaurants and entertainment houses.

Who needs registration: any commercial establishment with paid employees (even one), any shop, store, restaurant or café, offices of consultants and freelancers in many states, and even home-based businesses with paid help.

Common provisions: working hours typically 9 hours a day and 48 hours a week; one weekly holiday; overtime pay for hours beyond the standard; entitlement to annual, casual and sick leave; timely payment of wages; and display of the registration certificate at the premises.

Procedure: apply within 30 days of starting business (varies by state); online via state single-window portals such as Aaple Sarkar Maharashtra or Seva Sindhu Karnataka; documents include PAN, business address proof, business activity description and employee list; fees range ₹100-₹10,000 depending on employee count and state; the certificate is valid for 1-5 years and is renewable.

Penalty for non-registration is a fine of ₹100-₹50,000 depending on state. Some states (Maharashtra, Karnataka) have decriminalised the requirement; others retain criminal penalties.

The Food Safety and Standards Act, 2006 and its Rules and Regulations require every food business to be registered or licensed by the FSSAI in one of three tiers.

FSSAI Registration (Basic) covers petty food businesses with turnover up to ₹12 lakh a year — small dhabas, juice vendors, tea stalls, tiffin services and small-scale home bakers. FSSAI State Licence applies for turnover between ₹12 lakh and ₹20 crore — mid-sized restaurants, cafés, cloud kitchens, food trucks, mid-scale catering and small manufacturers. FSSAI Central Licence is required for turnover above ₹20 crore, importers, exporters, e-commerce food sellers with inter-state operations and specified categories like dairy units processing 50,000+ LPD.

Procedure: apply online at foscos.fssai.gov.in; fees are ₹100/year for basic registration, ₹2,000-₹7,500/year for state licence, ₹7,500/year for central licence. Documents include PAN, address proof, business plan, list of food categories, and a water test report for manufacturing. Timelines run 7-60 days depending on type; validity is 1-5 years and renewable.

Operating without FSSAI is a punishable offence — fine up to ₹5 lakh plus imprisonment up to 6 months. Display the licence number prominently on premises, packaging and invoices.

Beyond Shops Act and FSSAI, several industry-specific licences may apply.

Drug Licence from the State Drug Controller for pharmacies, drug manufacturers, distributors and hospitals dispensing drugs — two types, wholesale (Form 20B/21B) and retail (Form 20/21). Pollution NOC — Consent to Establish and Consent to Operate — from the State Pollution Control Board, required for manufacturing, processing, hotels, hospitals and IT parks; categorised Red, Orange and Green by pollution potential. Factory Licence under the Factories Act, 1948 for any establishment with 10+ workers using power or 20+ without power. Trade Licence from the Municipal Corporation — annual, with rates varying by trade.

IEC (Import Export Code) from DGFT for any import or export — free, online at dgft.gov.in. BIS Certification for specific products (electronics, helmets, cement) under the Bureau of Indian Standards Act. Sector-specific: RBI registration for NBFCs, payment systems and money exchangers; SEBI for investment advisers, portfolio managers and AIFs; IRDAI for insurance brokers and agents. State Excise Licence for liquor businesses.

RERA registration for real estate developers (see our RERA guide). Commodity-specific: Spices Board, Tea Board and Coffee Board registrations. EPFO and ESIC registration once you cross 20 employees (PF) or 10 employees (ESI).

Many states now run single-window systems to streamline multiple business registrations.

Prominent examples: Maharashtra's MAITRI portal, Karnataka's Seva Sindhu, Tamil Nadu's TN Single Window Portal, Telangana's TS-iPASS for industrial approvals, Andhra Pradesh's Single Desk Policy, Gujarat's Investor Facilitation Portal and the Delhi Single Window System. At the Centre, the India Investment Grid and Startup India platforms run alongside.

The National Single Window System (NSWS), launched in 2021, aims to be a one-stop portal for central and state approvals — nsws.gov.in.

Typical coverage: industrial approvals, Pollution NOC (Consent to Establish / Operate), Factory Licence, industrial power and water connections, land-use approvals, and state-specific incentives. Not usually covered: FSSAI (separate at foscos.fssai.gov.in), Drug Licence (State Drug Controller direct), BIS and IEC (Central direct), and GST (separate at gst.gov.in).

For large investments, the District Industries Centre (DIC) helps coordinate. For SMEs, Udyam Registration as an MSME unlocks a range of benefits.

Compliance doesn't end at licensing — several ongoing obligations follow.

Licence renewals: Shops Act annually or every 5 years depending on state; FSSAI 1-5 years; Trade Licence annually; Pollution NOC 5 years; Drug Licence 5 years; IEC is a one-time registration with no renewal.

Tax compliance: GST returns monthly or quarterly; TDS returns quarterly; income tax return annually; advance tax quarterly; and professional tax monthly or quarterly. Employee statutory compliance: PF monthly contribution and return; ESI monthly; salary, leave and attendance records under Shops Act / Factories Act; POSH Act Internal Committee and policy (see our POSH Act guide); maternity benefits (see our maternity guide).

Corporate compliance for private limited companies and LLPs: annual return (Forms AOC-4, MGT-7) to ROC; four board meetings a year for private limiteds; statutory audit for companies above ₹40 lakh turnover; and annual Director KYC via Form DIR-3 KYC.

Industry-specific: FSSAI annual return (Form D1); Pollution Control Board annual statement; Drug Licence sale registers.

Engage a reputable, specialised business compliance CA, Company Secretary or lawyer. Non-compliance penalties have escalated significantly post the 2020 reforms. For startups, our Startup India guide covers unlock-able benefits.