A business license is a legally sanctioned document required to run a business within a particular regional boundary. One has to legally register their business with the State Licensing Organization. Obtaining your business license is crucial, whether it is a small business license or one of a corporation.
The first thing one should set up their small business with is a business license. By registering your business, you will be able to go hand-in-hand with the central as well as star guidelines. Also, every nation has made it necessary for all businesses to obtain a business license. This will ensure that every established business complies with the rules and regulations concerning the business’ environmental issues. Registering for a business license can get you avail of business loans.
How To Obtain A Business License?
Every nation goes by certain rules and regulations that they have to follow in order to get their small business license. The requirements, as well as the amount spent on getting your business licensed, depend on the location of your business, business tasks, and rules prescribed by the government. If you want to learn how to obtain a license and other permits for your small business, we have mentioned the way how you can get one.
- Choose the location of your business firm
- Select the structure of your business
- Choose an appropriate name for your firm
- Register your business with the State Licensing Organization
- Get access to your federal as well as state tax ID numbers
- Apply for the licenses and permits
Documents Required For Obtaining Your Business License
There are specific documents required for the registration of your business legally. The documents you have to submit in order to acquire licenses that will work for small business loans too are:
- Government-issued identity containing your address
- Driving License
- PAN Card
- Bank Statement
- Address Proof
- Residence Card
- Residential Proof
- Electricity Bill/ Mobile Bill/ Telephone Bill
- Registered Office Proof
- The registered document of the business establishment of the registered office in the name of the company.
- The registered copy of the agreement in the name of the company along with the receipt of rent paid. These should not be older than a period of 30 days.
Importance Of Business License Registration In India
Obtaining a business license grants you permission to legally run your business under the jurisdiction of the nation. A business license helps in enhancing the name of the business owner in many ways. It has a positive impact on the employees, customers as well as stakeholders of the business by greeting them with confidence. A legal business license also guarantees that the goods and services offered by their firm are legally saturated and trustworthy.
A business license also adds to the profitability and prosperity of the business. It helps in collecting extra revenue, examining whether the firms are operating efficiently, and managing the various restrictions faced. It also gives the business an upper hand as a competitive lead as they will be able to lead with the proof of bearing a legal license during any debates.
Some of the additional benefits of obtaining a business license are:
Ensures Legal Protection
Applying for a business license ensures your business ticks off the criteria for all legal requirements. Since your business complies with the necessary needs, it is safe to say that you will be legally protected.
Guarantees Foreign Trading With Ease
Since you will be the holder of a legally issued document, it will be easy for you to conduct business with foreign affairs too. Engaging in business with new markets will become a comparatively easy job than it was before. A much more convenient and cheap way of expanding your firm is through a process called Manufacturing Under License. In this process, if you are the owner of a good or service which bears a patent, copyright, or trademark, you will be given limited foreign rights. These rights will involve producing and selling your commodities or services with foreign markets.
Acquiring Business Loans Will Become Simpler
Since you will have steady and legal paperwork concerning your business, you do not have to face any additional issues in signing up for an MSME loan.
Getting hold of small business loans will be comparatively easier than before. A business license will ensure speedy approval of loans since you already will be in possession of all the requirements.
The Bottom Line
By obtaining a business license for your firm, you will be doing yourself as well as the entire organization a huge favor. From getting legal protection to ensuring fast approval of small business loans, a license will help you go by the central as well as state guidelines. This will also make sure that you can engage more easily in foreign trade.