Licensing and registering a salon
To register a business, you need to choose whether to do so as a partnership firm, a private limited corporation, a limited liability company, or as a sole proprietorship.
Once you’ve chosen the form of business, obtain the registration from the registrar if it’s a company or LLP. The registration of a partnership firm is done by the subregistrar. In contrast, a sole proprietorship doesn’t have to follow many formalities.
Registering under the Shops and Establishment 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 Establishment Act before they can carry on a business and employ people. Employers are required to follow the provisions of this act regarding opening and closing times, working hours, overtime policy, leaves and responsibilities, display of notice, etc.
TAN Registration and PAN Registration
In the name of every business, a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) are required. When it comes to a sole proprietorship, both the PAN and TAN can be obtained in the name of the owner.
The IRS issues both of these ten-digit alphanumeric numbers. A PAN is required to make payments of Rs. 50,000 or more, and a TAN is required to deduct tax.
Registration with GSTIN
GST is imposed on salon business 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 required if the boutique meets this condition.
Obtain a trade license
You must obtain a local authority trade license before beginning your 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. Trade license applications are accompanied by these documents – company or firm registration papers, property tax documents, Fire NOCs, proof of identity, and proof of address.
Registration with the Professional Tax Board
Municipalities or corporations levy professional taxes. State taxes vary. You have to register yourself for professional tax registration in your state depending on the laws there.
A fire control center
If you are setting up a boutique, depending on the area and type of business you are planning (online/offline) and type of work you are going to be carrying out, you have to obtain the no-objection certificate (NOC) from the Chief Fire Officer (CFO). As an example, if you are conducting an offline business, where customers will access the shop and workers will be employed, you will need a fire NOC.
Safety for your employees and customers, as well as your own safety, depends on this.
For obtaining the NOC, along with the application, there are other documents to be shared too: the building plan, the model of the building, a certificate from the architect, list of electrical appliances being used, etc.