Various Initial Registrations and Licenses

Compliance under environment laws are:

•EC (Environment Clearances)

•FC (Forest Clearance)

•WC (Wild Life Clearance)

•CTE (Consent to Establish)

•CTO (Consent to Operate)

•Authorization (Waste Management & Hazardous and Other Wastes (Management and Transboundary Movement) Rules

•HSM (Hazardous Substance Management)

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, December 2025, Q. 1(e) (Syllabus 2022).

To protect the environment, a broad range of Laws, Rules, Regulations and Standards are framed by the Governments and Regulatory Bodies established by the Government. Following Environment Laws are required to be complied:

•Environment Clearances under Environmental Protection Act, 1986

•Environmental Impact Assessment issued under Environmental Protection Act,

•Air Prevention and Control of Pollution Act 1981

•The Water (Prevention and Control) Act, 1974

•The Water (Prevention and Control of Pollution) Cess Act ,1977

•Hazardous Waste (Management, Handling and Transboundary Movement)

Rules,

•Plastic Waste Management Rules, 2016

•Forest Clearance under Forest Act.

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, December 2023, Q. 4A(ii) (Syllabus 2022).

Yes, obtaining Food Safety and Standards Authority of India (FSSAI) License is mandatory for Ava under the Food Safety and Standards Act, 2006 since she is engaged in food business operations.

FSSAI Registration and Licence requirements are as follows:

•FSSAI Registration: It is required for all petty food business operators. A petty food business operator is any person or entity who manufactures, sells, trades, restaurant who are involved in food business with turnover up to ₹12 lakh and whose:

•State FSSAI License: FSSAI State License is needed for small to medium-sized Food Companies which has an annual turnover of ₹ 12 Lakhs - ₹ 20 crores. State FSSAI license is required for medium sized food manufacturers, processors and transporters.

•Central FSSAI License: For businesses with turnover above ₹20 crore or those operating in multiple states.

In view of the above, it is concluded that obtaining an FSSAI approval is mandatory for her cake and pastry business. As per the Food Safety and Standards Act, 2006, all food business operators, including cake and pastry shops, must obtain either FSSAI registration or a license, depending on their scale of operations. Since she expects an annual turnover of around ₹20 lakh, she is required to obtain a State FSSAI License as per the applicable regulations.

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, June 2025, Q. 2(b) (Syllabus 2022).

FSSAI License Any person or entity that is not classified as a petty food business operator is required to obtain a FSSAI license for operating a food business in India. FSSAI license is of two types:

i.FSSAI State License: FSSAI State License is needed for small to medium sized Food Companies which has an annual turnover of Rs 12 Lakhs — Rs 20 Crores. State FSSAI license is required for medium sized food manufacturers, processor and transporters.

ii.FSSAI Central License: It is mandated for all Food giants with an annual turnover of more than Rs 20 Crores. Based on the size and nature of the business, the licensing authority would change. Large food manufacturer/ processors/transporters and importers of food products require central FSSAI license.

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, December 2023, Q. 4(c) (Syllabus 2022).

The following documents are required to be uploaded by A and B with GST registration application form on the GST portal for GST registration of “Technical Solution LLP:

1.Copy of Certificate of Incorporation of LLP& LLP Agreement

2.Permanent Account Number (PAN) of LLP

3.Consent / Resolution by designated partners for obtaining GST Registration

4.Declaration / Authorization to Authorized Signatory

5.Bank Account Details: Scanned copy of a cancelled cheque containing name of the Business entity, Bank Account No., MICR, IFSC and Branch details.

6.Photos of all Partners

7.PAN Card / Aadhar Card of all Partners

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, June 2024, Q. 1(d) (Syllabus 2022).

Composition Scheme under the GST Act, 2017 The composition levy is an alternative method of levy of tax designed for small taxpayers whose turnover is up to Rs. 1.5 Crores (Rs. 75 lakhs in case of few States). The objective of composition scheme is to bring simplicity and to reduce the compliance cost for the small taxpayers. Moreover, it is optional and the eligible person opting to pay tax under this scheme can pay tax at a prescribed percentage of his turnover every quarter, instead of paying tax at normal rate.

Composition Scheme is now made available to service providers as well, whose aggregate annual turnover does not exceed Rs.50 lakhs. Both exclusive service providers and mixed service providers of goods and services can opt for this scheme.

K advises R to opt for composition scheme as R is a small businessman starting his company afresh and normal GST registration can burdensome him with major compliances, which will not be in case of GST Composition Scheme.

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, December 2023, Q. 1(d) (Syllabus 2022).

Procedure to apply for Industrial License

1.All applications for Industrial License under the Industries (Development and Regulation) Act, 1951 can now be applied online on G2B Portal in their respective forms.

2.The Applications are scrutinized for their completeness. Information in respect of incomplete applications is sought from the applicants.

3.If the applications for grant of license are complete in all respect with necessary documents, Department for Promotion of Industry and Internal Trade (DPIIT)

circulates them to concerned administrative ministries, Ministry of Home Affairs, Concerned State Government and other concerned agencies for their comments.

4.After receipts of Comments from the concerned Ministries/Agencies, files are processed and submitted to the Licensing committee for consideration.

5.Licensing committee can recommend for grant of license/rejection of proposal/deferment of the proposal, based on the comments received and deliberations in the Committee. After recommendation, the approval of the Minister in charge of DPIIT is obtained for grant of licenses or otherwise.

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, December 2023, Q. 4A(i) (Syllabus 2022).

Import Export Code (IE Code) is a key business identification number which is mandatory for exporting or importing goods. It is a 10-digit code which is issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry.

However, for services exports, IEC shall be not be necessary except when the service provider is taking benefits under the Foreign Trade Policy.

IE code has lifetime validity.

Importers are not allowed to proceed without this code and exporters can’t take benefit of exports from DGFT, customs, Export Promotion Council, if they don’t have this code.

The IE Code must be quoted by importers while clearing customs.

Also, banks require the importers IE Code while sending money abroad. For exporters, IE Code must be quoted while sending shipments and banks require the exporters IE Code while receiving money from abroad.

The nature of the firm obtaining an IEC may be any of the follows- “Proprietorship, Partnership, LLP, Limited Company, Trust, HUF and Society.” Consequent upon introduction of GST, IEC number is the same as the PAN of the firm. The IEC would be separately issued by DGFT.

MN Ltd is advised accordingly.

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, June 2024, Q. 4(d) (Syllabus 2022).

M advised the following process to apply for Importer Exporter Code (IEC) on the DGFT portal to the directors of XYZ Appliances Pvt. Ltd:

Process to apply for Importer Exporter Code (IEC) on the DGFT portal (https://dgft.gov.in):

a)Valid Login Credentials to DGFT Portal (After Registering on DGFT Portal)

b)The user should have an active Firm Permanent Account Number (PAN) and its details like Name as per PAN, Date of Birth or Incorporation.

These details will be validated with the Income Tax Department site.

c)Scanned Documents for Upload in the System (PDF Only and Max file size of 5 MB).

a.Proof of establishment/incorporation/registration.

i.Partnership ii. Registered Society iii. Trust iv. HUF v. Others b. Proof of Address can be any one of the following documents:

i.Sale Deed, rent agreement, lease deed, electricity bill, telephone landline bill, mobile, postpaid bill, MoU, Partnership deed; ii. Other acceptable documents (for proprietorship only): Aadhar card, passport, voter ID; iii. In case the address proof is not in the name of the applicant firm, a no objection certificate (NOC) by the firm premises owner in favor of the firm along with the address proof is to be submitted as a single PDF document.

c.Proof of Firm’s Bank Account i. Cancelled Cheque ii. Bank Certificate

d)The user should have an active DSC or Aadhaar of the firm’s member for submission.

e)Active Firm’s Bank account for entering its details in the Application and to make online payment of the application fee.

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, December 2024, Q. 1(b) (Syllabus 2022).

Business entities which provide internet services or engaged in commercial communications ie. call center, BPO, Tele-education, Tele-banking, tele networking, e-commerce and other IT enabled services who are categorised as ‘Other Service Providers’(OSP) under New Telecom Policy, 1999, must obtain a telecom license from Department of Telecommunication (DoT) under Ministry of Communications, Government of India.

The telecom license entitles the entities to provide telecommunication services in India. OSP license shall be categorized into two types:

1.Domestic OSP - OSP providing services to clients located within national boundaries of India

2.International OSP - OSP providing services to clients outside India.

So, considering the above facts, A and B require Domestic OSP as they want to setup business in Rewari, Haryana which is in India.

Process:

A company registered under the Companies Act, 2013 or under any other previous law i.e., the Companies Act,1956 or LLP registered under Limited Liability Act,2008 or Partnership Firm or organisations registered under Shops and establishment Act are eligible to obtain OSP license.

a.To Obtain a OSP license, the Company or LLP shall file an Application in specified Form to the DoT through online on DoT portal.

b.OSP license is a location specific and can have multiple registrations for each such site.

Documents required to obtain license:

•Certificate of Incorporation issued by ROC;

•Memorandum and Articles of Association;

•Copy of LLP Agreement;

•Board resolution Power of Attorney authorizing the Authorized signatory with attested signature;

•Resolution passed by all designated partners or Partners as per provisions of LLP Act;

•A Note on nature of business or activities of the proposed OSP;

•List of present directors of the Company;

•List of present designated partners of LLP;

•Present Shareholding pattern of the Company;

•Present Shareholding pattern of LLP.

All the documents must be certified with seal by company secretary or one of Directors or Statutory Auditors or public notary in case of Company.

All documents must be certified with seal by either designated partner or all partners or statutory Auditors or public notary in case of LLP.

The OSP license is valid for a period of 20 years and can be extended for further period of ten years from the expiry of twenty years.

State level Approval from the respective State Industrial Department.

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, June 2024, Q. 2(c) (Syllabus 2022).

Other Service Providers (OSP)

Business entities which provide internet services or engaged in commercial communications i.e., call center, BPO, Tele-education, Tele-banking, Tele-networking, e-commerce and other IT enabled services are categorised as ‘Other Service Providers’ (OSP) under New Telecom Policy, 1999.

They must obtain a telecom license from Department of Telecommunication (DoT), Government of India. The telecom license entitles the entities to provide telecommunication services in India.

OSP license shall be categorized into two types:

1.Domestic OSP - OSP providing services to clients located within national boundaries of India

2.International OSP - OSP providing services to clients outside India.

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, December 2023, Q. 4(d) (Syllabus 2022).

Linking the Permanent Account Number (PAN) with Aadhaar is crucial for:

1.Tax Compliance: Ensures accurate identification of taxpayers and reduces tax evasion by preventing the issuance of multiple PANs.

2.Fraud Prevention: Minimises the risk of identity fraud by linking a unique identity (Aadhaar) to a financial identifier (PAN).

3.Regulatory Requirement: Compliance with government regulations, as linking is mandatory for filing income tax returns and conducting certain financial transactions.

4.Efficiency: Streamlines financial processes, such as applying for loans, accessing government services, and claiming tax benefits.

Overall, the linkage enhances transparency, ensures regulatory compliance, and promotes financial integrity

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, June 2025, Q. 4(e) (Syllabus 2022).

Utility of PAN

•This number is unique to each cardholder and helps identify the income tax payer.

•PAN enables the department to identify/ link all transactions of the PAN holder with the department. These transactions include tax payments, TDS/TCS credits, returns of income, specified transactions, correspondence etc, and so on.

•It facilitates easy retrieval of information of PAN holder and matching of various investments, borrowings and other business activities of PAN holder.

•It also serves as an identity proof for a large number of purposes e.g. sale or purchase, by any person, of shares of a company or sale or purchase of any immovable property.

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, December 2023, Q. 1(c) (Syllabus 2022).

Procedure for obtaining NOC from Pollution Control Board:

1.The application for consent to establish (CTE) and consent to operate (CTO) can now be made online by logging onto the concerned State’s pollution control board’s website.

2.The State Pollution Control Board need to reply within 4 months. Due diligence is carried out by the pollution authority of the business premises and pollution.

3.The NOC application is either accepted or rejected. If the application is accepted for NOC, then a certificate is issued to the business. However, if application is rejected by pollution control board, then the applicant needs to be intimate of the reason for the same.

If an individual fails to obtain a CTE/CTO or Pollution license, they will be subject to 6 months to 1 year of imprisonment, with chances of a 6-year extension and fine.

PART – II

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, June 2025, Q. 4A(v) (Syllabus 2022).

Section 24 of Central Goods and Services Tax Act,2017 provides for compulsory registration for certain category of persons irrespective of their turnover that is to say, the threshold exemption of 40 lakh rupees or 20 lakh rupees as the case may be is not available to them.

The following categories of persons shall be required to be registered under this Act:

•Inter State Suppliers persons making any inter-State taxable supply;

•casual taxable persons;

•persons taxable under reverse charge;

•person who are required to pay tax under sub-section (5) of section 9;

•non-resident taxable persons;

•persons who are required to deduct tax under section 51, whether or not separately registered under this Act;

•persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;

•Input Service Distributors;

•Suppliers who supply goods through electronic commerce operators;

•every electronic commerce operator who is required to collect tax;

•every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person Thus, Section 24 of the CGST Act, 2017 mandates compulsory registration for businesses engaged in inter-state supply of goods or services, among other criteria.

For QuickTech Solutions, this means that as they began providing services to clients in other states, they were legally required to obtain GST registration regardless of their turnover. The implications include the necessity to comply with tax regulations, the ability to claim input tax credits on business expenses, and enhanced credibility with clients.

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, December 2024, Q. 3(d) (Syllabus 2022).

As a business owner of a shop or establishment, it us compulsorily required to get the same registered under the Shops and Establishment Act:

Procedure for Registration of Shops & Establishments

1.Submit an application in the prescribed form to the Inspector of the area within 30 days of starting any work in the shop/establishment. The application is to be submitted along with the prescribed fees and should contain the following information:

a.Name of the employer and the name of a manager, if any; b. The postal address of your establishment; c. The name of establishment; d. Such other particulars as may be prescribed.

2.Upon receiving the application for registration and the fees, the Inspector shall verify the accuracy and correctness of the application. Once suitably satisfied, he shall enter the details in the Register of Establishments and issue a registration certificate for the establishment. This certificate will be valid for 5 years and has to be renewed thereafter.

It is important that the registration certificate has to be prominently displayed at the establishment.

The Labour Department of each state has authority for the registration process.

Many States have a 100% online process, while some states are still following the manual procedure for filing. The Registration certificate is required to be renewed periodically as mentioned in the state regulations.

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, December 2025, Q. 4(b) (Syllabus 2022).

License under Shop and Establishment Act Any shop or commercial establishment that commences operation must apply to the Chief Inspector for a Shop and Establishment Act for obtaining the License within the prescribed time.

The application for license in the prescribed form must contain:

•the name of the employer,

•address of the establishment,

•name of the establishment,

•category of the establishment,

•number of employees, and

•other relevant details as requested.

On submission of the application and review by the Chief Inspector, the shop or commercial establishment will be registered and a registration certificate will be issued to the occupier.

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, December 2023, Q. 2(d) (Syllabus 2022).

A Trade License is a permission issued by the local municipal authority allowing a business to operate in a specific location and engage in particular activities. It is required for businesses that may impact public health, safety, or the environment, such as restaurants, manufacturing units, warehouses, salons, and commercial shops. The license ensures that the business follows local regulations related to hygiene, safety, building norms, and zoning laws. It also helps authorities monitor commercial activities within their jurisdiction. Without a Trade License, a business may face closure, penalties, or legal action. The license must be renewed periodically to maintain compliance. It provides legitimacy to the business and assures customers that the establishment meets required standards.

In other words, Licenses are integral to run any business. Depending on the nature and size of business, several licenses are applicable in India. Knowing the applicable licenses for the enterprises and obtaining them is always the best way to start a business. The lack of relevant licenses can lead to costly lawsuits and unwanted legal battles. Business licenses are the legal documents that allow a business to operate while business registration is the official process of listing a business (along with relevant information) with the official registering authority.

There are many factors affecting authorizations of business licenses which may include the type of business ownership, such as partnership, sole proprietor or company, & the number of employees, location of business etc. Business licenses are not only required for new business entity but also required for already established Companies.

PART–II

Source⁠​‌​‌‌​‌​⁠: ICSI Guideline Answers, June 2026, Q. 4A(v) (Syllabus 2022).