Gyms and fitness centres are indeed a lucrative business opportunity in India. However, before you prepare to get yourself a hefty slice of the oh-so-tasty gym business pie, there are certain formalities, documents and licences that need to be obtained and carried out to keep your business legal, and running smoothly. At Gym Consultants India, we are well-versed with these matters, and can help you out with all of these procedures.
Court rulings have ensured that gyms in India need to obtain a licence before opening for business. This clearance has to be got from the local police department in your area. While the licence can be obtained by reaching out to the police department in person, gyms can also obtain one online. In addition, in case the gym property is a rented one, the gym must issue an undertaking to this effect at the nearest police station.
Before any establishment opens for business, the business needs to be registered with the local government, and the same follows for gyms and fitness centres as well. Furthermore, a gym or fitness business also requires a Shop & Establishment Licence as well as a Trade Licence in order to commence activities. However, do consider that while the S&E Licence can also be obtained on residential premises, the Trade Licence will only be issued for commercial properties. Registering your gym with the municipal corporation is another significant process that should be carried out as well.
SSI or Small Scale Industry Registration is another thing to be considered before commencement of business, and this bestows gyms and fitness businesses with several advantages.
Before commencement, a gym can apply for a provisional registration certificate, for items that do not require an industrial license. When this application is received by the authority, a provisional registration certificate will be issued, without necessitating a visit to the gym premises. Later on, once it is open for business, the gym can proceed to apply for permanent registration.
Before applying for the permanent registration licence, your gym needs to obtain all the necessary statutory and administrative clearances. Besides this, care must be taken to ensure that there is no violation of the location restrictions, and that the value of the gym premises and the equipment do not exceed the specified prescribed limits. In conclusion, it should also be proven beyond sufficient doubt that the gym is not a subsidiary, or even controlled or owned by another industrial undertaking.
In addition, gyms have to obtain a Labour Licence for employees receiving a salary of 15,000 or below – as they are liable for ESI & PF.
Registration of your gym or fitness centre is the next thing that should be done. Your business can be set up as a Limited Liability Partnership or as a PVT. LTD. company – this will ensure that the business can be easily sold and transferable in the future.
The paying of Service Tax, as mandated by the government, is a must if your gym business is expected to exceed a turnover of nine lakhs. An ST-1 form must be submitted online for this purpose. Gyms will also have to pay a luxury tax in case there is an air conditioner fitted on the business premises.
As gyms and fitness centres typically play music, obtaining a Music Licensing Public Performance License Phonographic Performance Ltd (PPL) will ensure that there is no copyright infringement. There are two music copyright bodies in Indian namely, Novex Communications and Phonographic Performance Limited. You can visit the websites of these two bodies to obtain the licences.
In addition to all of the above, and in conclusion, gyms and fitness centres need to obtain an affiliation letter from the local bodybuilding association prior to business commencement.
Now, we do hope that you found this post useful and informative. In case you have any further questions, or need us to help you with any of these procedures, or anything at all to do with the fitness business or gym industry, do get in touch with us. We’ll only be too glad to help you out!
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