Get a Quote
Get a Quote and Find Services to Fit Your Needs 50000+ Satisfied Clients
5000+ Licenses & Registration
15 Branches across India
75 Years + Combined experience
With the growing awareness regarding health and fitness, the gyms are becoming more and more popular. If you are a fitness enthusiast who has dreamt of owning your own gym, then go through this blog post where we explain the licenses and registrations required to start a gym.
By going through this blog post, you will be able to understand how you can build a successful fitness business and operate it smoothly.
Starting your own gym business allows you to pursue your passion for fitness while connecting with like-minded individuals who share similar health goals as you do. One of the main benefits of owning a gym is the ability to create a community hub. Your gym can serve as a space for people who often feel lonely and bring them together so they can interact and socialize. By cultivating a strong sense of community, you will certainly attract some loyal members who are likely to stay longer and encourage others to join your gym.
As a gym owner, you'll have to take on multiple roles, especially when you're just starting out. If you are someone who enjoys variety and likes having different tasks every day rather than being monotonous, then opening a gym might be the right fit for you. One day, you could be researching competitors, exploring new technologies or investigating the latest fitness trends. The next day, you might be on the gym floor to assist all the gym members directly.
What’s more, owning your gym gives you control over how it operates, particularly in the initial business stages as you build your team. Running your own gym also immerses you in an environment that is focused on fitness and allows you to build a culture centered on well being and inspire positive lifestyle changes among your gym members.
To set up a gym successfully, you need to ensure compliance with all the legal and regulatory requirements. Now, to ensure compliance, you need to secure all the necessary licenses and registrations, including the following:
Before you start a gym, you need to decide on the business structure. If you do not want to register your business and want to be the sole owner, you can opt for the sole proprietorship model. However, if you want to run an unregistered business along with partner(s), then the appropriate business model for you would be a general partnership firm.
The issue with these unregistered business models is that the assets of the owner(s) will be at risk if the business incurs debt or losses. This is why it is recommended to choose to register a business as a limited liability partnership, one person company, private limited company or public limited company.
All four of these models offer limited liability protection so that personal assets of the business owners aren’t at risk in case of losses or debts incurred by the business entity. For registering your business as any of these models, you need to file the prescribed business registration application form with the Registrar of Companies (ROC).
The process for this is online. It needs to be completed via official MCA portal. After filing the application form, the ROC will review it. If satisfied with the application, the authority will register the business and issue a certificate of incorporation to the business entity. This certificate serves as a legal proof of business existence.
To operate a shop or commercial establishment in India, it is necessary to obtain a shop and establishment license. This license is issued by the Labour Department of the respective state government as per provisions of the Shop and Establishment Act. This Act is a state specific Act, meaning each state has its own version of this Act.
The shop and establishment license usually needs to be secured within 30 days of commencing business activities. By securing this license, you will be able to operate your business smoothly and in a legitimate manner.
Another essential legal requirement for a gym is the health safety license. This license is issued by the municipal corporation of the respective state where the business is located.
The license is issued for a set period of time. The exact time period depends on the state law. It requires timely renewal for uninterrupted business operations.
A Fire Safety Certificate, a.k.a No Objection Certificate from fire safety department, is necessary for opening a gym in India. This license is issued by the fire safety department of the state where the business is located. For example: in Delhi, the Delhi Fire Service is the authority for issuing Fire Safety No Objection Certificates under Delhi Fire Service Act 2007.
Having the Fire Safety NOC ensures the gym contains the necessary equipment to handle fire breakouts and protect the occupants. So, make sure to secure this certificate on time.
GST registration is a mandatory requirement for businesses if their annual turnover is more than Rs. 40 lakhs for goods or Rs. 20 lakhs for services. Therefore, if your gym’s annual turnover goes beyond these threshold limits, you will need to secure GST registration. The registration process is entirely online, so you don’t need to visit any government department for it.
You can either complete the registration process from the comfort of your home. If you find the process confusing, you can reach out to an experienced GST consultant who can fulfill the registration process on your behalf.
After getting registered under the GST system, you will receive a Goods and Services Tax Identification Number for your business. It serves as a formal proof that your business is registered under the GST system.
If you want to play music at your gym, you will be required to obtain a music license. The music license issuing authorities in India are Phonographic Performance Limited (PPL) and Indian Performing Right Society (IPRS). The PPL-issued music license is required for public places that play recorded music. The IPRS-issued music license covers copyright licenses for all the musical/literary works.
To start a gym in India and operate it in a smooth and legal manner, you need to make sure you secure all the necessary licenses and registrations from the concerned authorities. For assistance, you can connect with our consultants at Registrationwala. We will offer you with our professional guidance as well as full assistance to establish a gym.
Q1. How to open a gym in India?
A. To open a gym in India, you need to pick the premises for gym, conduct market research for choosing the premises, purchase gym equipment, secure important licenses/registrations like company registration, shop and establishment license, health safety license, music license, GST registration, fire safety NOC, etc.
Q2. Is it mandatory for a gym to secure GST registration?
A. Yes, if the gym’s annual turnover exceeds Rs. 40 lakhs for goods or Rs. 20 lakhs for services, then it is mandatory to secure GST registration.
Want to know More ?
