Opening a Salon Business in India

Detailed Registration Process

• Step 1: The registration under Shops and Establishment Act

  According to this act, a license must be obtained within 30 days of the business's launch. One must register under the Shops and Establishments Act before operating any shop or establishment, conducting business, or hiring staff. This legislation outlines the standards that the employer must adhere to with regard to opening and closing times, working hours, overtime rules, leave policies, how work is distributed, how notices are displayed, etc. You can reach out to experts at Zolvit to complete your registration asap.

• Step 2: Signing up for PAN and TAN

  Each and every company is required to register in its own name for a PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number). However, in the event of a sole proprietorship, the PAN and TAN can both be obtained in the name of the owner. Both are ten-digit, alphanumeric, and one-of-a-kind numbers provided by the Income Tax Department. A PAN is required in order to make payments of ₹50,000 or more, and a TAN is required in order to deduct TDS.

• Step 3: Registration of GSTIN

  If a company's yearly turnover exceeds ₹10 lakh in special category and north eastern states, and ₹20 lakh in all other states, it must pay GST. Your company needs a GSTIN registration if the boutique's revenue meets this requirement.

• Step 4: Trade Permit

  It is required to obtain a trade license from the local administration before starting the firm. Only after verifying that the trade is both legal and in accordance with public policy is this license granted. The following documents are included with the trade license application: the company/firm registration paper, the property tax document, the fire NOC, the ID proof, the address proof, etc.

• Step 5: Registration for Tax Professionals

  The local government, whether it be a municipality or corporation, imposes the professional tax. This tax is different in each state. You must register yourself for professional tax registration in accordance with the legislation that governs in your state.

• Step 6 : Fire NOC

  A No Objection Certificate (NOC) from the Chief Fire Officer is required when opening a salon, depending on the locale, the type of business (online/offline), and the work being done. As an illustration, if you are running an offline business where consumers will visit your shop and employees will be needed to run the business, you must obtain the fire NOC.

  This is essential to secure your own safety as well as the safety of your boutique's clients and staff. Along with the application, the following additional documents must be shared in order to obtain the NOC: the construction schedule, the building model, and an architect's certification.

• Step 7: Employment Registration

  Registration with Employees State Insurance (ESI) is required if you hire 20 or more people on a pay basis. Each employee who earns under ₹21,000 per month is qualified to get benefits under this scheme.

• Step 8: Pollution Control Board Approval

  According to the Pollution Control Board, if you dye hair in your store and treat clothing materials with chemicals and other things, it is considered an industry. The PCB will grant you a license after checking the provided documentation and, if necessary, doing an on-site inspection of your facilities.

• Step 9 : Tax Compliance and Auditing

  The GST rate may apply to salon services depending on the type of services one is receiving. The act requires the salon registered under the GST guidelines to submit a GST return. The proprietors of salons must also have annual and legal audits carried out in accordance with the applicable regulations.