The Business Registration Process
If you want your business to run properly, you should register it as either a partnership firm, private limited company, limited liability company, or sole proprietorship.
Once you’ve chosen the form of business, obtain the registration from the registrar if it’s a company or LLP. Partner firms are registered at the sub registrar’s office. Nevertheless, if it is a sole proprietorship, little formality is needed.
Registration under the Shops and Establishments Act
A license under this act must be obtained within 30 days of opening a business. Shops and establishments have to register under the Shops and Establishments Act before they can carry on a business and employ people. It lists the rules that an employer must follow with respect to opening and closing times, working hours, overtime policy, leaves and assignment of work, and display of notices.
Registration of PANs and TANs
Each business must register for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN). For sole proprietorships, both PANs and TANs can be obtained in the name of the owner.
Both are assigned by the Income Tax Department and consist of two alphanumeric ten-digit numbers. To deduct TDS, it is necessary to have a PAN in order to make payments of Rs. 50,000 or more.
Registration with GSTIN
GST is imposed on salon business in india whose turnover is more than Rs. 10 lakhs for North Eastern and special category states, and more than Rs. 20 lakhs in other states. GSTIN registration is necessary if the boutique has a turnover that meets this requirement.
License to trade
You must obtain a local authority trade license before the hair salon business plan. Licenses are issued only when it is determined that the trade is not harmful to the public and does not violate public policy. These documents are attached to the trade license application – company/firm registration documents, tax papers, Fire NOCs, ID proofs, and address proofs, etc.
Registration with the Professional Tax Board
Local authorities – municipalities and corporations – levy professional tax. Rates vary from state to state. Depending on the laws governing your state, you may have to register yourself for a professional tax registration.
In order to start a boutique, you must obtain a no-objection certificate (NOC) from the Chief Fire Officer, depending on the area and the kind of business and work being done. An offline business, like a shop where customers will visit and workers are employed, needs a fire NOC to function.
As well as ensuring the safety of your customers, employees, and yourself, this step is vital.
In addition to the application in order to obtain the NOC, other documents must be shared too. These include the building plan, model of the building, architect’s certificate, and list of electrical appliances used.
Registration under labour law
When more than 20 employees are hired on a salary basis, registration with Employees State Insurance (ESI) is required. The scheme is available to all employees earning less than Rs. 21,000 per month.
The Pollution Control Board has granted permission
As per the Pollution Control Board (PCB), dyeing clothes and treating dress materials with chemicals and other substances fall under the category industry. If required, the PCB will conduct an on-site inspection of your facilities after verifying your documents.
Audit and compliance with tax laws
For salon services, the GST rate varies based on what kind of service is being received. A salon registered under the GST regulations must file a GST return as prescribed by law. Additionally, salon owners have to comply with regulatory laws by completing annual and regulatory audits.