India faces extreme summer heat in most states. While some people use fans and coolers, others prefer AC because it gives better cooling. Usually when summer starts, AC service demand increases for common services like cleaning, repair of gas leakage, cooling issues, installation maintenance, etc. During this time, you can make good money from this business.
If you are interested in starting an AC service business in India, you must obtain necessary licenses and registrations like Business Registration, Shop and Establishment License, TI/HVAC Certification and ISO Certification among others. In this blog post, we shall discuss all of them one by one in a detailed manner.
An AC servicing business is simply a business that provides repair, cleaning and maintenance services for air conditioners. Due to the growth of the Heating, Ventilation and Air Conditioning (HVAC) industry and increasing demand for professional servicing, the need for AC servicing businesses is also rising.
While ACs are common in residential homes, they are even more common in corporate offices. Usually at such offices, multiple ACs require servicing. Therefore, starting an AC servicing business can be quite profitable especially during summer beginning when people prefer AC service before they start using it.
An AC service business usually offers the following services:
|
S. No. |
Service Provided by AC Service Business |
|
1. |
AC installation service |
|
2. |
AC uninstallation service |
|
3. |
AC cleaning service |
|
4. |
AC gas refilling service |
|
5. |
AC repair service |
|
6. |
AC maintenance service |
|
7. |
AC cooling problem repair |
|
8. |
AC water leakage repair |
|
9. |
AC compressor repair |
|
10. |
AC PCB repair service |
|
11. |
AC pipe fitting service |
|
12. |
AC filter cleaning service |
|
13. |
AC wiring repair service |
|
14. |
AC annual service contract |
|
15. |
AC inspection and checking service |
Here is a table that lists the major AC service business licenses and registrations as of 2026:
|
S. No. |
License/Registration Required for AC Service Business |
|
1. |
Business Registration |
|
2. |
GST Registration |
|
3. |
Shop & Establishment License |
|
4. |
ITI HVAC Certification |
|
5. |
ISO Certification |
|
6. |
Trade License |
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Below, we shall explain the licenses and registrations required for AC servicing business in a detailed manner:
One of the primary requirements for an air conditioner servicing business is choosing the most appropriate business structure. While choosing one, you should keep in mind which structure is suitable according to the scale of your business. If business is small and operated by one person, then a sole proprietorship can be ideal. If there are two or more than two partners, then a partnership firm may be suitable. Both these business structures do not require mandatory registration with a government authority. However, in both cases, owners have unlimited liability in case of business loss or debt.
Therefore, many people prefer registered business models. A One Person Company (OPC) is basically a registered, more modern version of a sole proprietorship that offers limited liability protection, which is something the proprietorship lacks. Similarly, an LLP is a registered version of a partnership firm that also provides limited liability protection. However, if there may be a requirement for funding or investment in the future, then a private limited company is usually considered the best option.
You can choose the business structure depending on your requirements and future plans. Remember, all the three structures, i.e., OPC, LLP and private limited company, require ROC registration. To help decide which business structure is better in your case, you can connect with our company registration team at Registrationwala.
GST registration is required for an air conditioner service business if its annual turnover exceeds Rs. 20 lakhs in most states or Rs. 10 lakhs in special category states. This is because AC servicing is treated as a service business under GST law. Additionally, GST at 18% is generally applicable on AC repair and maintenance services.
Even if the business annual turnover doesn’t exceed the specified threshold, GST registration is still recommended as it helps in taking input tax credit, working with registered companies and in building trust with customers.
Shop & Establishment license is one of the most important licenses for a business. Having this license shows that the business is legally allowed to operate. It is issued by the Labour Department under the Shop and Establishment Act of the respective state.
Every state has its own rules and accordingly, requirements for obtaining this license vary. Many states now offer online application through the state labour department official portal.
So, you need to file the application and pay the registration fee. After verification by the labour inspector, the registration certificate will be issued. Usually, you can download it from the same portal.
ITI HVAC certification is a certification program. It teaches skills essential for AC servicing like AC installation, repair, gas charging and system maintenance. It is recommended to obtain the HVAC certification to gain technical expertise so you can provide the best AC services.
Even without this certification, you can start your business. However, being in possession of this certification certainly puts you in an advantageous position over competitors who lack it. These certifications are issued by government ITIs under the Directorate General of Training as well as by private HVAC training institutes.
ISO certification is again not mandatory but still highly recommended. Many AC service businesses obtain it to increase their trustworthiness and professional image. By obtaining ISO certification for your AC service business, you can improve customer confidence and also increase your chances of getting contracts from companies and commercial clients.
It is interesting to note that the ISO certificates are not issued directly by ISO itself; they are provided by accredited certification bodies. For assistance in obtaining ISO certification, you can get in touch with our team.
Trade License is one of the most basic licenses for an AC servicing business. It ensures that the business complies with safety regulations, public health standards and environmental norms. It protects residents from potential hazards. Since an AC servicing business involves electrical equipment, wiring work and refrigerant handling, there are certain safety risks involved.
Therefore, obtaining trade license is of utmost importance as it helps certify that the business is operating in compliance with prescribed safety standards as well as local municipal regulations.
Also Read: Which License is Required for Travel Agency
By starting an AC servicing business, you can offer a wide range of services such as AC installation, repair, gas refilling, maintenance, duct cleaning, AMC services and much more. To start an AC servicing business, you need to ensure legal and regulatory compliance. For this, you must obtain the necessary licenses and registrations mentioned in this blog post.
For assistance in AC service company incorporation, you can get in touch with Registrationwala. We will help you obtain DSC, draft the MOA and AOA, file the SPICe+ form and assist you in obtaining the Certificate of Incorporation.
Q1. How to open an AC service business?
A. To open an AC service business, you need proper tools and a suitable business location. For operating at large scale, you will also need skilled technicians (unless you want to be the sole technician). You should also obtain necessary registrations and licenses such as business registration, GST registration, Shop and Establishment License, trade license, HVAC/ITI certification and ISO certification.
Q2. When does GST registration become a mandatory requirement for AC servicing business?
A. GST registration becomes a mandatory requirement for AC servicing business when its annual turnover exceeds threshold limits, i.e., Rs. 20 lakhs in most states and Rs. 10 lakhs in special category states.
I’m Manish Kumar, a content management professional with expertise in financial and regulatory matters. I specialize in turning complex compliance and incorporation concepts into clear, practical insights. As a regular contributor to the Registrationwala portal, I write about finance, taxation, government schemes, company formation, and statutory compliance. My focus is to provide accurate, up-to-date information that helps readers understand regulatory developments and their real-world implications.
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