The statutory responsibility of companies does not end with the company registration. Employers need to apply for many statutory registrations to run the business in India under various departments.
SRP assists startup companies in all statutory registrations, Licenses and permissions that are mandatory for new start up business in India like Shops and Commercial establishment, Factories License, ESI, PF, PT, CLRA, MSME, Trade License and FSSAI etc.
Karnataka Shops & Commercial License:
"Shop" has been defined by the Act to include "any premises where any trade or business is carried out or where any service is rendered to customers". It includes offices, store rooms, godowns and warehouses used for trade or business. And "Commercial Establishment" means a commercial, trading, banking, insurance establishment, and an establishment where people are engaged in office work, a hotel, restaurant, boarding or eating house, a café, or other refreshment, theatre or other public entertainment place. The above-mentioned shops and commercial establishment should get Shops and Commercial Establishments Registration and should comply with the provisions of the Act to avoid penalty. Shops & Establishment Registration is Valid only for 5 years and is to be renewed after the stipulated period.
Karnataka Factories License:
The Factories Act is applicable to the premises wherein 10 or more workers are employed with the use of power or 20 or more workers are employed without the use of power or Less than 10 workers, if the activity is notified by the State Government on any day preceding 12 months, wherein manufacturing activities are carried on.
Employee’s state insurance is a social security and health insurance scheme for employees. ESI is applicable to all organizations where there are more than or equal to 10 employees.
Employees State Insurance covers employees having a salary of less than or equal to Rs 21,000 per month.
For every establishment or a factory employing 20 or more persons EPF registration is mandatory and any establishment employing even less than 20 persons can be covered voluntarily.
The Employer must get registered under "Karnataka tax on Professions, trades, callings and employment Act 1976" within 60 days of Company Registration. All registered business organizations need to make monthly payment of Profession tax along with Monthly Return in Form 5A if they have employees drawing salary of Rs. 15,000/- or above. Apart from this, annual return needs to be filed using Form -5.
Contract Labour License – CLRA:
The act applies to establishments and to the contractors wherein twenty or more workmen are employed or were employed or were employed even for one day during the preceding twelve months as contract labour.
If the act is applied to an establishment the principal employer must make an application in the prescribed form, accompanied by the prescribed fees to the registration officer of the establishment under the act. If the application is complete in all respects the registration officer will register the establishment and issue the certificate of registration in the prescribed form to the principal employer.
It applies to every establishment which employs or had employed on any day of the preceding twelve months, ten or more building workers in any construction work. The cost of such construction work should be more than ten lakhs. Building workers mean a person who is employed to do any skilled, semi-skilled or unskilled, manual supervisory, technical for hire, whether the terms of employment be implied, in connection with any building work.
Registration of establishment within a period of sixty days from such commencement of Construction work.
Micro, Small & Medium enterprises can apply for MSME registration; our team will help you obtain a license.
The Food Safety & Standards Act, 2006 introduced to improve the hygiene and quality of food has brought about tremendous changes in the food industry. Any person involved in food manufacturing or processing or packaging or distributing entity is now required to obtain a FSSAI License.
FSSAI License is issued by the Food Safety and Standards Authority of India (FSSAI). Application to commence a food business must be made to the FSSAI in the prescribed format. Based on the application and supporting documents, FSSAI will accord approval.
Who is commencing a new business needs to get the business registered with the local government unless he is doing the business in his own name. However, registration of business is different from obtaining a trade license. Trade license is the permission that one needs to get from the government to begin a business.
Trade license is applicable to all the eating establishments like hotels, restaurants, canteen, food stalls, bakeries, sale of vegetables, meat, provisions store, etc. Trades which use motives like manufacturing industries, factories, power looms, flour mills, cyber café, etc.
Offensive and dangerous trades like barber shop, Dhobi shop, timber wood, sale of firewood, candle manufacturer, cracker manufacturer, etc.