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A mall is a large indoor shopping center that typically houses a variety of retail stores, including clothing, footwear and home accessory shops. Many malls also feature entertainment options like movie theaters and game arcades. In this blog post, we shall discuss which licenses are required to start a mall in India.
Starting a mall requires you to make a substantial financial investment. Only a few investors can afford to start it. However, it is usually worth it. A mall offers significant potential returns due to high rental income and consistent foot traffic. If your mall is well-located, it can attract numerous tenants, from retail stores to popular restaurants chains and entertainment venues.
The following licenses and certifications are required to start a mall in India.:
Opening a mall requires business registration. The process to register a company in India needs to be completed online. For completing this process, obtaining a digital signature certificate is essential.
In case you are wondering, a digital signature certificate is basically the digital equivalent of a handwritten signature. It is used for authenticating and signing various company incorporation documents. Without a DSC, you cannot register a business online in India.
To start a mall in India, it is essential to register your business and obtain a business incorporation certificate. But before registering your business, you must choose the business structure from the available options, such as private limited company, limited liability partnership and public limited company.
After choosing the structure, you can initiate the business registration process by visiting the official MCA portal. Use the prescribed company registration form to make an online application. Fill in all the necessary details in the form and attach all the required documents.
Now, pay the prescribed application fees and file the form on the portal. Once ROC receives your application, it’ll review it and verify all the documents. If satisfied with the details you provided, ROC will register your company and issue a certificate of incorporation in the company’s name.
Another key requirement to set up a mall in India is securing a shop and establishment license. This license needs to be obtained within 30 days of commencement (in most cases). Each state/union territory has its own Shops and Establishments Act, and the licenses are issued based on the specific regulations of that state's act.
The Fire Safety Certificate, or the No Objection Certificate (NOC) from the Fire Safety Department, is essential for setting up a mall in India. It is issued by the Fire Safety Department of the state/union territory where the mall is located.
For instance, in Delhi, the Department of Delhi Fire Services is responsible for issuing the fire safety NOC. Therefore, to open a mall in Delhi, you must obtain fire safety NOC from the Delhi Fire Services Department.
Fire Safety NOC ensures that the mall staff and customers will be safe in case of fire or other emergencies at the mall. Generally, before the fire safety NOC is issued, the fire department conducts an inspection of fire safety measures and equipment.
FSSAI License is required by food businesses offering food and beverages at the mall. This license is issued by the Food Safety and Standards Authority of India. It is mandatory for all food business operators involved in manufacturing, processing, storage, distribution, import, export or sale of food products.
Securing a FSSAI license ensures compliance with food and safety standards set forth by the Indian government. To secure this license, you must file an online application via the FOSCOS portal. For assistance in the FSSAI application process, you can reach out to FSSAI consultants at Registrationwala.
If you plan to set up a liquor store at your mall, you’ll have to secure a liquor license under the Act applicable in your state/union territory. The liquor license enables retail sale of Indian/foreign liquor at shopping malls. To obtain a liquor license in Delhi, you must file an application with the Delhi Excise Department.
Securing a trade license is mandatory to establish a mall. This license is also necessary for tenant businesses operating within the mall, like cafes, restaurants and cinema.
The trade license is issued by the municipal corporation of the state/union territory where the business is located. For instance, in Delhi, the Municipal Corporation of Delhi (MCD) issues the trade license to businesses located within Delhi.
GST registration is mandatory for businesses if their annual turnover exceeds Rs. 40 lakhs for goods and Rs. 20 lakhs for services. Since a mall makes money in crores, it is quite obvious that you’ll require GST registration for your business. To apply for this registration, the process is entirely online. Just visit the official GST portal and file an application there.
After your application is reviewed, a GST registration certificate will be issued in your company’s name. This certificate will contain a Goods and Services Tax Identification Number (GSTIN), which is a 15-digit identifier assigned to every GST-registered business in India.
If you plan to open a movie theatre at the mall and exhibit films, you will need to obtain a cinematograph license. This license allows the exhibition of cinematograph films in a specific location. To secure a cinematograph license in Delhi, you need to file an application with Delhi Police Licensing authority.
Opening a mall requires securing numerous licenses and certifications, including business registration certificate, GST registration certificate, FSSAI license, liquor license and trade license among others. For assistance in opening a mall in a smooth and hassle free manner, connect with the Registrationwala expert team. We will help you fulfill all the legal and regulatory requirements so you can open a mall successfully in India.
Q1. Which licenses and certificates are required to open a mall in India?
A. Some key licenses required to open a mall include certificate of company incorporation, FSSAI license, liquor license, trade license, business commencement certificate and GST registration certificate among others.
Q2. Is FSSAI license required to open a restaurant at a mall?
A. Yes, FSSAI license is necessary to open a restaurant at a mall.
Q3. Which authority issues Fire Safety NOC in Delhi?
A. The Department of Fire Services, Delhi Government, is responsible for issuing the Fire Safety NOC in Delhi.
Q4. Which license is required to exhibit films at a movie theatre in Delhi?
A. To exhibit films at a movie theatre in Delhi, a cinematograph license is required.
I’m Manish Kumar, a content management specialist. I simplify complex financial and regulatory topics into clear, insightful content. As a regular contributor to the Registrationwala portal, I provide updates on finance, Tax, government schemes, compliance, and other incorporation information. My goal is to keep you informed about key industry developments and their impact.
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