Notary

Notary: a practical guide to your rights, the procedure and what to do first. Legals365 is the legal platform of Advocate B.K. Singh and associates, based in Delhi NCR.

In short. Most businesses in India need several permits, not one: a shop and establishment registration, a municipal trade licence where the trade is listed, an FSSAI registration or licence for any food business, a fire NOC for larger or riskier premises, and sector licences such as drug, petroleum, excise or factory licences. Each is issued by a different authority under a different law.

People often ask for a business licence as if there were one document that lets a business open its doors. There is no such single licence in India. What a business actually needs depends on what it does, where it does it, how big it is and what kind of building it sits in. A small consultancy in a commercial office may need little more than a shop and establishment registration and GST. A restaurant in the same building may need an FSSAI licence, a municipal health trade licence, a fire safety certificate, an excise licence if it serves liquor, and music licences if it plays recorded songs.

This page explains the common licences and permits, the law and authority behind each, how to apply, what documents are asked for, how the answer changes with the premises and the city, and what to do when an inspector issues a notice, refuses a renewal or seals the premises. It also covers some related paperwork that businesses ask about in the same breath, such as notarised affidavits, gazette notifications of a change of name, residence certificates and buyer audits like SEDEX and SMETA.

Main laws

Food Safety and Standards Act 2006 and its 2011 licensing regulations; state shops and establishments Acts; municipal Acts (for example the Delhi Municipal Corporation Act 1957); state fire service Acts; Petroleum Act 1934; Drugs and Cosmetics Act 1940; Legal Metrology Act 2009; OSH Code 2020

Authorities

FSSAI and state food safety departments, municipal corporations, state labour departments, fire services, PESO, drugs controllers, state excise departments, pollution control boards

FSSAI thresholds

Since March 2026: basic registration up to 1.5 crore annual turnover, state licence up to 50 crore, central licence above that and for some categories such as importers

Validity

FSSAI licences and registrations now continue unless suspended or cancelled, subject to annual returns and fees; most other licences need periodic renewal

Time to obtain

From a few days for online registrations to several months where inspections or building approvals are involved

Documents

Identity and address proof, entity documents, proof of right to use the premises, building approvals and occupancy papers, layout plans, safety and equipment details

Which licences does a business need in India?

Start with three questions: what the business sells or makes, what kind of premises it uses, and how many people it employs. The answers decide the list. Almost every business with a shop, office or establishment needs registration under the state shops and establishments law. Any business that handles food, from a cloud kitchen to a grocery wholesaler, needs FSSAI registration or a licence. Trades listed by the municipal corporation need a trade licence. Larger or riskier premises need fire clearance. Manufacturing units need a factory licence once they cross the worker threshold, and pollution consents unless their industry falls in an exempt category.

On top of these sit the sector licences. A pharmacy needs a drug licence, a fuel or solvent store needs a petroleum licence, a bar needs an excise licence, a packer of goods sold by weight needs legal metrology registration, and an importer needs an Importer Exporter Code from the DGFT. Products covered by a BIS Quality Control Order need BIS certification before they can be sold.

Tax registrations are separate from licences but are usually done at the same time. GST registration depends on turnover and the type of supply, and is explained on our page on GST registration, returns and notices. The entity itself, whether company, LLP or firm, should be set up first, because most licences are issued in the name of the legal entity and changing the name later means fresh paperwork. Our page on company, LLP and business registration covers that first step.

Common business licences at a glance

FSSAI registration and licence: what changed in 2026

FSSAI amended its licensing regulations in March 2026 and the thresholds are now much higher than before. A food business with annual turnover up to 1.5 crore needs only basic registration. Above that and up to 50 crore it needs a state licence. A central licence is needed above 50 crore, and some categories, such as importers of food, need a central licence whatever their size. Many businesses that held central or state licences under the old limits have moved down a level, and their files have moved to a different authority. Check which authority now holds your file before you apply for any modification.

The same amendment removed the old system of renewal every one to five years. Licences and registrations now remain valid unless suspended or cancelled. That is not a licence to forget them. Manufacturers holding a state or central licence must still file the annual return and pay the annual fee on time, and failure to do so can lead to automatic suspension. Every change in the premises, the product categories, the directors or partners, or the address needs a modification application. Operating a category of business that is not on the licence is treated much like operating without one.

Running a food business without registration or a licence is an offence under section 63 of the Food Safety and Standards Act. Inspections now focus on product risk, past compliance and third-party audit results, and pre-licence inspection has been removed for micro and small units. Street vendors registered with their municipal body or town vending committee are treated as registered with FSSAI. Applications are made on the FoSCoS portal, and the 14-digit licence or registration number must appear on labels, menus and bills.

Trade licence and shop and establishment registration

A trade licence is a municipal permission to carry on a particular trade at a particular place. It is not a general permit for all business. Municipal corporations keep a list of trades that need one, typically eating houses, sweet shops, bakeries, storage of goods, workshops, salons, guest houses and certain kinds of retail. In Delhi the MCD issues health trade licences and general trade or storage licences under the Delhi Municipal Corporation Act 1957 and its bye-laws, and the NDMC and the Delhi Cantonment Board deal with their own areas. In Uttar Pradesh the municipal corporations of Ghaziabad, Lucknow and other cities follow their own bye-laws, while in Noida and Greater Noida the industrial development authorities control land use and building approvals. Lists and procedures are revised from time to time, so check the current list for your area before assuming a licence is or is not needed.

The trade licence is tied to land use. A municipal body will refuse a trade licence for a commercial activity in a building or street not permitted for that use under the master plan. In Delhi, the mixed land use rules allow certain activities on notified streets on payment of conversion charges, and a trade licence application from a residential plot outside those streets is likely to be refused. That is why the first document anyone checks is not the application form but the property papers.

Shop and establishment registration is a labour law registration, not a municipal one. Delhi, Uttar Pradesh and Haryana each have their own shops and establishments law, with online registration through the state labour department. The registration certificate records the employer, the number of workers, working hours and holidays. It is usually the first document banks, landlords and payment gateways ask for when a new business opens an account. Changes in the number of employees, the address or the ownership must be notified.

Fire NOC: when it is needed and why it is refused

A fire NOC, more accurately a fire safety certificate, is needed for buildings and occupancies the state fire law classifies as high risk. The usual triggers are building height, the type of occupancy (assembly, educational, institutional, mercantile, industrial, storage of hazardous goods), floor area and, for eating houses, seating capacity. Delhi follows the Delhi Fire Service Act 2007 and the Delhi Fire Service Rules 2010. Uttar Pradesh and Haryana each passed a new fire and emergency services Act in 2022. The technical standards come largely from the National Building Code.

The process has two stages for new buildings: fire clearance of the building plans before construction, and a fire safety certificate after the fire officer inspects the completed installations. For an existing building, the owner or occupier applies with the building plans, details of fire-fighting installations such as hydrants, sprinklers, alarms and extinguishers, the means of escape and the electrical load. The certificate is valid for a fixed period and must be renewed. A tenant who runs a restaurant or clinic in a building whose owner has never obtained fire clearance will find it very hard to get a certificate for one floor alone.

Refusals usually come from a short list of defects: staircases narrower than required or blocked, a single exit where two are needed, missing or non-working sprinklers, extra floors or mezzanines built without sanction, and changes of use from residential or storage to assembly. When Advocate B.K. Singh's office looks at a fire refusal, the first thing checked is whether the defect is physical, which needs works on site, or documentary, which needs approved plans or an occupancy certificate. Physical defects cannot be argued away, and a legal challenge on those grounds wastes time that could have been used to fix the building.

Factory licence, pollution consents and labour registrations

Manufacturing businesses carry a heavier set of permits. The Occupational Safety, Health and Working Conditions Code 2020, in force since November 2025 along with the other Labour Codes, replaced the Factories Act 1948. Under the Code a factory is premises with 20 or more workers where power is used, or 40 or more without power, higher numbers than under the old Act. Factories need a licence and registration under the Code and the state rules, and the occupier and manager carry personal responsibility for safety. Contractors who supply workers need a licence once they cross the threshold set in the Code. State rules are still being finalised in places, so check the rules notified in your state.

Most industries also need consent to establish before they build and consent to operate before they start, from the state pollution control board under the Water Act and the Air Act. Units are classified as red, orange, green or white according to pollution potential, and white category units are generally exempt from consent. Hazardous waste, plastic packaging, batteries, tyres and e-waste carry their own registrations. Our page on consent to establish and consent to operate explains that process in detail.

Employers also register with EPFO and ESIC once they reach the thresholds, and with the state labour department under the Labour Codes. These are not licences in the strict sense, but an inspector checking a factory will ask for them, and buyers running social compliance audits will too. The page on labour and employment law covers wages, PF, gratuity and POSH obligations.

Sector licences: petroleum, drugs, liquor, metrology and imports

A petroleum licence is needed to import, store or transport petroleum products above the quantities exempted by the Petroleum Rules 2002. Petroleum is graded into classes by flash point, and the exempt limits differ by class. Licences are issued by the Petroleum and Explosives Safety Organisation (PESO), usually after a no objection certificate from the District Magistrate, which in turn involves reports from the police and fire services. The site plan, the distances to neighbouring buildings and the design of tanks and pumps are examined closely. Explosives, compressed gas cylinders and gas storage have separate rules under the Explosives Act 1884 and connected rules.

A drug licence under the Drugs and Cosmetics Act 1940 is issued by the state drugs controller for retail and wholesale sale, with conditions on a registered pharmacist or competent person, storage and record keeping. Manufacturing licences for drugs, cosmetics and medical devices involve both state and central authorities. Excise licences for liquor are issued under each state's excise law and are among the most tightly controlled, with location restrictions near schools and religious places and frequent policy changes. Packers and importers of pre-packaged goods register under the Legal Metrology Act and must print the mandatory declarations on every package.

Importers and exporters need an Importer Exporter Code from the DGFT, and some goods need further permissions, such as BIS certification, plant quarantine clearance or a licence for restricted items. Our page on FDI, FEMA and foreign exchange compliance deals with the foreign trade and investment side.

How to get a business licence, step by step

The order matters. Applying for a trade licence before the premises are cleared, or for FSSAI before the entity is formed, produces refusals that then sit on the record.

1. Map the licences

   List every licence the business needs by activity, premises, size and city. Ask the landlord or society what approvals the building already has, including the occupancy certificate and any fire clearance.

2. Check the premises

   Confirm that the land use permits the activity and that the building matches its sanctioned plan. Extra floors, basements used for business and unapproved changes of use are the most common reasons for refusal later.

3. Set up the entity

   Form the company, LLP or firm, obtain PAN, and open the bank account in its name. Licences should be applied for in the name that will run the business.

4. Collect documents

   Prepare identity and address proofs of the owners or directors, the entity documents, the rent agreement or title papers with owner's NOC, layout plans, and equipment or product lists. Get every document in the same name and address format.

5. Apply online and track

   Most applications now go through state single-window portals or the authority's own portal. Answer queries within the time given, attend the inspection with the documents in hand, and keep the acknowledgement numbers.

6. Display and diarise

   Display licences where the law requires, print licence numbers where required, and keep a calendar of annual returns, renewals and fee dates. Assign one person to own it.

Single-window portals in Delhi, Uttar Pradesh (Nivesh Mitra) and Haryana bring several applications together, but each approval is still decided by its own department under its own law. A delay in one does not automatically hold up the others, and a refusal by one is appealed under that department's law.

Documents usually asked for

How the premises change the answer

The same business can be easy or nearly impossible to license depending on the building. For a unit in an approved commercial complex or mall, the developer usually holds the occupancy certificate and fire clearance, and the tenant mainly needs its own licences and a copy of the building approvals. For a shop on the ground floor of a residential plot, everything turns on whether the street is notified for commercial or mixed use and whether the conversion charges have been paid. For a basement or an extra floor, check the sanctioned plan before signing any lease: commercial use of an area not shown in the plan invites sealing.

In an industrial area, the allotment terms of the industrial authority control what can be made there. A plot allotted for one activity may need permission before a different activity starts, and leasehold plots in Noida, Greater Noida and Ghaziabad often need the authority's consent for change of activity, sub-letting or transfer. In Delhi, industrial areas have their own rules, and units in non-conforming areas face continuing difficulty with licences.

Where the property is rented, insist on an owner's NOC for each licence that needs one, and a clause in the lease obliging the owner to cooperate with renewals. Landlords who sign happily at the start sometimes refuse later when the relationship sours, and without a written undertaking the tenant has little to fall back on. Our pages on NOC assistance and occupancy certificates explain those papers.

Delhi, Noida, Ghaziabad and Gurugram: what differs

In Delhi, three bodies matter most for a typical business: the MCD (or NDMC in its area) for trade licences, property tax and building plans; the Delhi Fire Service; and the Delhi government's departments for labour, food safety, excise and drugs. Mixed land use and master plan rules decide what can run where. Police licences are needed for some activities, and their scope has been reduced in recent years, so check the current position for your trade.

In Noida and Greater Noida, the land belongs to industrial development authorities and is mostly leasehold. The authority's lease deed, building bye-laws and its approval of the activity matter as much as any licence. UP uses the Nivesh Mitra single-window portal for many state approvals. In Ghaziabad, the municipal corporation and the Ghaziabad Development Authority share the roles, and older colonies regularised over the years can carry gaps in approvals.

In Gurugram and the rest of Haryana, the Department of Town and Country Planning, the Municipal Corporation of Gurugram and HSIIDC (for industrial estates) are the main players, and the Haryana Enterprise Promotion Centre handles single-window approvals. Change of land use permissions are a frequent issue for businesses outside licensed colonies. The broad structure of licences is the same across the region; the authority, the portal and the local rules are what change.

Inspection, show cause notice, suspension or sealing: what to do

Most enforcement starts with an inspection, followed by an inspection report, an improvement notice or a show cause notice. Read the notice for three things: the exact provision said to be violated, the time given to reply or comply, and the consequence threatened. A food safety improvement notice, for example, gives a fixed time to correct the defects, and only if the business fails does suspension or cancellation follow. A fire or municipal notice may threaten sealing. The time limits are short and are counted from the date of service, not from the date someone in the business got round to reading it.

Reply in writing, point by point, with documents. Where the defect has been fixed, say so and attach photographs, invoices and certificates. Where the notice is wrong in law, for example because the activity does not need the licence claimed, explain why and cite the provision. Ask for a personal hearing if the notice does not offer one. Silence or a vague letter promising compliance is treated as an admission. Our page on legal notices: drafting and replying has more on writing replies that hold up later.

If the premises are sealed, the remedy is usually an application or appeal to the authority or appellate body named in the statute, and in Delhi sealing under the municipal law has its own appellate route. Courts expect the business to have used that route first. Where the action is plainly without jurisdiction, without notice or in breach of natural justice, a writ petition before the High Court under Article 226 is possible, as explained on our page on cases in the Delhi High Court. The page on responding to a sealing notice covers property sealing in detail.

Key provisions and remedies

Related paperwork: notary, gazette notification and residence certificate

Some documents often grouped with licences are not licences at all, but they come up when businesses apply for one. A notary under the Notaries Act 1952 attests signatures, administers oaths for affidavits and certifies copies. Notarisation proves that a person signed before the notary; it does not make a document valid, and it is no substitute for registration where the Registration Act requires it. Many licence applications ask for notarised affidavits or undertakings, and some authorities now accept self-attested or e-signed documents instead.

A gazette notification is used to publish a change of name, a correction in a name or date of birth, or a change of religion. Changes for individuals are usually published in the Gazette of India through the Department of Publication, or in the state gazette, after an affidavit and a newspaper advertisement. Businesses need it when a proprietor's name on licences, PAN and bank records differs, and authorities will often refuse to amend a licence until the gazette copy is produced.

A residence or domicile certificate is issued by the revenue authorities, usually through the SDM or Tehsildar on the state e-District portal. It is needed for some state schemes, quotas, subsidies and licences reserved for local residents. Proof of continuous residence, such as old electricity bills, school records or property papers, is what decides the application.

Buyer audits: SEDEX, SMETA and how licences feed into them

Exporters and suppliers to large retailers are often asked to pass a social compliance audit. SEDEX is a membership platform where suppliers share audit and compliance data, and SMETA (Sedex Members Ethical Trade Audit) is an audit methodology covering labour standards, health and safety, environment and business ethics. These are private, buyer-driven requirements, not government licences. No law forces a supplier to be SEDEX registered, but a buyer can make it a condition of the contract.

In practice, a SMETA audit is largely a test of whether the legal licences and records are in order. Auditors ask for the factory licence, the fire certificate, pollution consents, PF and ESI registrations and challans, wage registers, working hour records, the POSH committee, and contractor licences. A missing fire certificate or excessive overtime will appear as a non-compliance, and the buyer will expect a corrective action plan. Getting the licences right first makes the audit much easier.

If a buyer has suspended orders after an audit, read the contract to see what the buyer can actually do, how long you have to correct the findings, and whether the buyer's code of conduct forms part of the contract. Our page on commercial contracts deals with such disputes.

Mistakes that cause refusals and penalties

• Signing the lease before checking the building. No licence can cure an unauthorised floor, a prohibited land use or a missing occupancy certificate.
• Applying in the wrong name. Licences taken in a proprietor's name and later used by a company, or the other way round, lead to fresh applications and gaps in cover.
• Ignoring modifications. New product categories, a new address or a change of directors usually need a modification application, not just an email.
• Missing annual returns. Under the 2026 FSSAI rules, licences no longer expire, but a missed annual return or fee can suspend them.
• Replying late or vaguely to a notice. The time to reply is short and an inadequate reply becomes part of the record used against the business later.
• Relying on an agent's word. Get the acknowledgement, the application copy and the licence in hand, and verify the licence number on the authority's portal.

What to do this week

If you are about to open, make the list of licences, collect the building papers from the landlord, and do not sign the lease until the land use, sanctioned plan and occupancy certificate have been checked. If you are already running, pull out every licence and registration, check that the name, address and activities match how the business actually runs, and set up a calendar of returns and renewals.

If you have received an inspection report, improvement notice, show cause notice or sealing order, note the date of service and the time given, gather the documents that answer each point, and get a written reply on file within time. Where an appeal lies, the clock is already running. In licence disputes that reach Advocate B.K. Singh's office, the business usually loses ground in the first two weeks after a notice, not in the hearing.

If you want the papers checked before you act, the team of Advocate B.K. Singh at Legals365 can review them and tell you the next step through our talk to a lawyer page.

Frequently asked questions

Is FSSAI registration enough for a small food business?

Since the March 2026 amendment, food businesses with annual turnover up to 1.5 crore need only basic registration, while those above need a state or central licence. Some categories, such as food importers, need a central licence regardless of turnover. The business may still need a municipal trade licence and fire clearance depending on the premises.

Does an FSSAI licence need renewal now?

Licences and registrations now remain valid unless suspended or cancelled, so the old renewal cycle has gone. Licensed manufacturers must still file annual returns and pay the annual fee on time, and missing them can lead to suspension. Any change in premises, categories or ownership still needs a modification.

What is the difference between a trade licence and shop registration?

A trade licence is a municipal permission for a listed trade at a particular place and depends on land use. Shop and establishment registration is a labour law registration covering employees, working hours and holidays. Many businesses need both.

Is a fire NOC needed for a small shop or office?

Usually not, if the building is low-rise and the occupancy is not high risk. It is needed for buildings above the height limits, assembly and institutional uses, larger eating houses, hotels, hospitals, schools and hazardous storage. Check the state fire rules for the thresholds that apply to your building.

Can I get a trade licence for a business in a residential area?

Only if the land use rules allow that activity at that location. In Delhi, notified mixed use and commercial streets allow certain activities on payment of conversion charges. Elsewhere in a residential area, a trade licence is likely to be refused and the premises risk sealing.

Who issues a petroleum licence?

Licences for storing petroleum above exempt quantities are issued by the Petroleum and Explosives Safety Organisation under the Petroleum Rules 2002. A no objection certificate from the District Magistrate is usually needed first. The site plan and safety distances are examined closely.

What happens if I run a food business without a licence?

It is an offence under section 63 of the Food Safety and Standards Act, punishable with imprisonment up to six months and a fine. Food safety officers can also stop the business and seize stock. Apply at once and keep the acknowledgement while the application is processed.

How do I reply to a food safety improvement notice?

Correct the defects within the time given and reply in writing with photographs, invoices and test reports. If you disagree with the notice, say why point by point. An appeal lies to the Commissioner of Food Safety within the short time the Act allows.

Can a licence be taken in the name of a proprietor and used by a company?

No. A licence is issued to a particular person or entity, and a new company needs its own licences or a formal transfer where the law allows. Using a proprietor's licence for a company exposes both to penalties.

Is SEDEX or SMETA certification compulsory?

No law requires it. It is a buyer requirement, usually written into supply contracts by retailers and brands. The audit checks whether the legal licences, labour records and safety measures are in order.

Why is a gazette notification needed for a licence?

When the name on a licence application differs from the name on PAN, bank or identity records, authorities ask for proof of the change. A gazette notification of the change of name is the accepted proof. It is published after an affidavit and a newspaper advertisement.

Can I challenge a sealing order in the High Court directly?

Courts usually expect you to use the appeal provided in the municipal or other statute first. A writ is possible where the sealing was done without jurisdiction, without notice or in breach of natural justice. Act quickly, because delay weakens any request for interim relief.