Packers and movers business is a service that involves packing, loading, transporting, unloading, and unpacking of goods and belongings for various clients. Packers and movers business requires technical skills, knowledge, and equipment to ensure the quality and safety of the goods and the services. However, before starting a packers and movers 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 packers and movers business in Hyderabad.

Company Registration from Ministry of Corporate Affairs (MCA)

Company registration is the first and foremost step to start a packers and movers 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 packers and movers 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 portal¹, by filing the required forms and documents.
• 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 portal¹, by filing the required forms and documents.

GST Registration from Goods and Services Tax Network (GSTN)

GST registration is another essential requirement to start a packers and movers 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 packers and movers businesses with annual turnover more than ₹20 lakhs (₹10 lakhs for special category states). GST registration can be done online through the GST portal², by filing the required forms and documents.

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 packers and movers license for packers and movers businesses. Any packers and movers business operator must obtain a trade license from the Greater Hyderabad Municipal Corporation (GHMC) before starting the packers and movers business. The trade license is valid for one year and must be renewed annually. The trade license ensures that the packers and movers business follows the local regulations, health and safety standards, and other statutory requirements. The trade license can be applied online through the GHMC portal³, by filling the required details and paying the requisite fee.

Other Registrations and Licenses

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

• Professional Tax Registration: It is the registration of the packers and movers 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 packers and movers 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 packers and movers business under the various labour laws and authorities. Labour law registrations are required for packers and movers businesses that employ any workers or staff. The main labour law registrations for packers and movers business are:
  • EPF Registration: It is the registration of the packers and movers business under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. It involves obtaining an EPF code number for the packers and movers business. EPF is a social security scheme that provides retirement benefits to the employees. EPF registration is mandatory for packers and movers 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 packers and movers business under the Employees’ State Insurance Act, 1948. It involves obtaining an ESI code number for the packers and movers 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 packers and movers 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 packers and movers business under the Employee’s Compensation Act, 1923. It involves obtaining an EC policy for the packers and movers 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 packers and movers businesses that employ any workers. EC registration can be done online or offline through the EC authority.
• Vehicle Registration: It is the registration of the vehicles used by the packers and movers business for transporting the goods and belongings. Vehicle registration is granted by the transport department of the state. Vehicle registration involves obtaining a registration certificate (RC) and a registration number (number plate) for the vehicle. Vehicle registration ensures that the vehicle complies with the motor vehicle laws, the emission norms, and the road safety rules. Vehicle registration can be done online or offline through the transport department, by filling the required forms and documents.
• Import-Export License: It is the license to engage in the international trade of goods and services. Import-export license is granted by the Directorate General of Foreign Trade (DGFT). Import-export license involves obtaining an Importer-Exporter Code (IEC) for the packers and movers business. Import-export license enables the packers and movers business to avail various benefits and incentives under the foreign trade policy. Import-export license can be done online through the DGFT portal, by filling the required forms and documents.