Baby care is a service that involves taking care of babies and toddlers in the absence of their parents or guardians. Baby care can be provided at home, at a center, or at a client’s location. Baby care is a rewarding and fulfilling business for those who love children and have the skills and patience to handle them. However, before starting a baby care business in Hyderabad, you need to obtain various registrations and licenses from different authorities to ensure compliance with the legal and regulatory requirements. In this article, we will discuss the main legal requirements for starting a baby care business in Hyderabad.

Company Registration from Ministry of Corporate Affairs (MCA)

Company registration is the first and foremost step to start a baby care business in Hyderabad. Company registration involves registering your business entity with the Ministry of Corporate Affairs (MCA), the central authority that regulates and governs the corporate affairs in India. Company registration provides legal recognition, protection, and benefits to your business. There are various types of company structures that you can choose from, such as:

• Sole Proprietorship: A sole proprietorship is the simplest and most common form of business entity, where you are the sole owner and operator of your business. A sole proprietorship does not require any formal registration, but you may need to obtain a trade license, GST registration, and other licenses depending on your business activity and turnover.
• Partnership Firm: A partnership firm is a business entity where two or more persons agree to share the profits and losses of a common business. A partnership firm can be registered under the Indian Partnership Act, 1932, or the Limited Liability Partnership Act, 2008. A partnership firm registration helps establish the rights, duties, and liabilities of the partners and ensures smooth operations.
• Private Limited Company: A private limited company is a business entity where the ownership is limited to a maximum of 200 shareholders and the shares are not publicly traded. A private limited company is the most preferred choice for baby care businesses, as it offers limited liability, perpetual succession, easy transferability, and access to funding. A private limited company registration can be done online through the MCA portal, by filing the required forms and documents¹.
• One Person Company: A one person company is a business entity where there is only one person as the owner and director of the company. A one person company is a hybrid of a sole proprietorship and a private limited company, as it offers limited liability, perpetual succession, and easy compliance. A one person company registration can also be done online through the MCA portal, by filing the required forms and documents¹.

GST Registration from Goods and Services Tax Network (GSTN)

GST registration is another essential requirement to start a baby care business in Hyderabad. GST registration involves registering your business entity with the Goods and Services Tax Network (GSTN), the online portal that administers and facilitates the GST system in India. GST registration enables you to collect and remit GST to the government and ensures compliance with the tax regulations. GST is a comprehensive indirect tax levied on the supply of goods and services in India. GST registration is mandatory for baby care businesses with annual turnover more than ₹20 lakhs (₹10 lakhs for special category states). GST registration can be done online through the GST portal, by filing the required forms and documents².

Trade License from Greater Hyderabad Municipal Corporation (GHMC)

Trade license is a permission granted by the municipal corporation to carry out a specific trade or business activity at a particular location. It is also known as a baby care license for baby care businesses. Any baby care business operator must obtain a trade license from the Greater Hyderabad Municipal Corporation (GHMC) before starting the baby care business. The trade license is valid for one year and must be renewed annually. The trade license ensures that the baby care business follows the local regulations, health and safety standards, and other statutory requirements. The trade license can be applied online through the GHMC portal, by filling the required details and paying the requisite fee³.

Fire Safety NOC from Fire Department

Fire safety NOC is a no-objection certificate issued by the fire department to certify that the premises of the baby care business are safe from fire hazards and have adequate fire-fighting equipment and measures. Fire safety NOC is mandatory for baby care businesses that involve cooking, heating, or storing inflammable materials. The fire safety NOC is issued by the fire department after inspecting the premises and verifying the fire safety standards. The fire safety NOC is valid for three years and must be renewed thereafter. The fire safety NOC ensures that the baby care business minimizes the risk of fire accidents and protects the lives and property of the clients and the babies.

License from Women and Child Development Department

License from Women and Child Development Department is a permission granted by the state government to operate a baby care center or a crèche. License from Women and Child Development Department is required for baby care businesses that provide care for more than six babies at a time, for more than four hours a day, and for more than 15 days a month. License from Women and Child Development Department is granted by the district or the state level authority of the department, after verifying the eligibility criteria, the infrastructure, the staff, the facilities, and the safety measures of the baby care center or the crèche. License from Women and Child Development Department is valid for five years and must be renewed thereafter. License from Women and Child Development Department ensures that the baby care business complies with the norms and standards prescribed by the department for the welfare and development of the babies⁴.

Other Registrations and Licenses

Depending on the nature and scope of your baby care business, you may also need to obtain other registrations and licenses from various authorities, such as:

• Income Tax Registration: It is the registration of the baby care business under the income tax act. It involves obtaining a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN) for the baby care business. PAN is a unique identification number for the baby care business for the purpose of income tax. TAN is a unique identification number for the baby care business for the purpose of deducting and collecting tax at source from the payments made to the suppliers, employees, etc. Income tax registration is mandatory for every baby care business and can be done online through the income tax portal.
• Professional Tax Registration: It is the registration of the baby care business under the professional tax act of the respective state. Professional tax is a tax levied by the state government on the income earned by the professionals and employees. Professional tax registration is required for baby care businesses that employ any workers or professionals. Professional tax registration can be done online or offline through the professional tax authority of the state.
• Labour Law Registrations: These are the registrations of the baby care business under the various labour laws and authorities. Labour law registrations are required for baby care businesses that employ any workers or staff. The main labour law registrations for baby care business are:
  • EPF Registration: It is the registration of the baby care business under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. It involves obtaining an EPF code number for the baby care business. EPF is a social security scheme that provides retirement benefits to the employees. EPF registration is mandatory for baby care businesses that employ 20 or more workers. EPF registration can be done online through the EPF portal, by filling the required forms and documents.
  • ESI Registration: It is the registration of the baby care business under the Employees’ State Insurance Act, 1948. It involves obtaining an ESI code number for the baby care business. ESI is a social security scheme that provides medical and cash benefits to the employees and their dependents in case of sickness, injury, or death. ESI registration is mandatory for baby care businesses that employ 10 or more workers. ESI registration can be done online through the ESIC portal, by filling the required forms and documents.
  • EC Registration: It is the registration of the baby care business under the Employee’s Compensation Act, 1923. It involves obtaining an EC policy for the baby care business. EC is a social security scheme that provides compensation to the employees and their dependents in case of injury or death due to an accident arising out of and in the course of employment. EC registration is mandatory for baby care businesses that employ any workers. EC registration can be done online or offline through the EC authority.
• Infrastructure Licenses: These are the licenses to avail the basic infrastructure facilities such as electricity, water, and gas for the baby care business. Infrastructure licenses are required for every baby care business to ensure the smooth and uninterrupted operation of the baby care business. The main infrastructure licenses for baby care business are:
  • Electricity License: It is the license to obtain the electricity connection for the baby care business. Electricity license is granted by the electricity distribution company of the area. Electricity license is subject to the payment of security deposit and monthly electricity charges. Electricity license ensures that the baby care business has adequate and reliable power supply for the baby care, lighting, cooling, etc.
  • Water License: It is the license to obtain the water connection for the baby care business. Water license is granted by the water supply board of the area. Water license is subject to the payment of security deposit and monthly water charges. Water license ensures that the baby care business has adequate and clean water supply for the baby care, drinking, washing, etc.