Required Registrations for Textile Business in Hyderabad

Textile business is a service that involves producing, processing, or selling various types of fabrics, yarns, or garments. Textile business requires technical skills, knowledge, and equipment to ensure the quality and functionality of the products or services. However, before starting a textile 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 textile business in Hyderabad.

Company Registration from Ministry of Corporate Affairs (MCA)

Company registration is the first and foremost step to start a textile 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 textile 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 textile 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 texttile 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 textile license for textile businesses. Any textile business operator must obtain a trade license from the Greater Hyderabad Municipal Corporation (GHMC) before starting the textile business. The trade license is valid for one year and must be renewed annually. The trade license ensures that the texttile 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.

Texttile Committee Registration from Textile Commissioner

Textile committee registration is a registration of the texttile business under the Texttile Committee Act, 1963. Texttile committee registration is required for texttile businesses that deal with cotton, wool, silk, or synthetic fabrics or yarns. Texttile committee registration involves obtaining a texttile committee number for the texttile business. Texttile committee registration enables you to avail various benefits and incentives under the texttile policy. Textile committee registration can be done online or offline through the office of the Textile Commissioner, by filling the required forms and documents⁴.

Other Registrations and Licenses

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

• Import-Export License: If your textile business is involved in the import or export of any goods or services, you may opt for the import-export license. Import-export license is a permission granted by the Directorate General of Foreign Trade (DGFT) to engage in the international trade of goods or services. Import-export license involves obtaining an Importer-Exporter Code (IEC) for your textile business. Import-export license enables you 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.
• FSSAI License: If your textile business also sells or serves any food or beverage items, you may opt for the FSSAI license. FSSAI license is a permission granted by the Food Safety and Standards Authority of India (FSSAI) to ensure the quality and safety of the food or beverage items. FSSAI license is mandatory for any business that deals with food or beverage items. FSSAI license can be done online through the FSSAI portal, by filling the required forms and documents.
• Fire Safety Certificate: If your texttile business involves any fire or electrical hazards, you may opt for the fire safety certificate. Fire safety certificate is a certificate issued by the fire department to certify that the premises of the textile business are safe from fire hazards and have adequate fire-fighting equipment and measures. Fire safety certificate is mandatory for textile businesses that involve cooking, heating, or storing inflammable materials. Fire safety certificate is issued by the fire department after inspecting the premises and verifying the fire safety standards. Fire safety certificate is valid for three years and must be renewed thereafter. Fire safety certificate ensures that the textile business minimizes the risk of fire accidents and protects the lives and property of the clients and the workers.
• Pollution Clearance from Pollution Control Board: If your textile business involves any environmental pollution or harm, you may opt for the pollution clearance from the pollution control board. Pollution clearance is a clearance certificate issued by the pollution control board to certify that the texttile business does not cause any environmental pollution or harm. Pollution clearance is required for textile businesses that generate or discharge any waste, effluent, or emission that may affect the air, water, or soil quality. Pollution clearance is issued by the pollution control board after assessing the environmental impact of the textile business and prescribing the necessary pollution control measures. Pollution clearance is valid for five years and must be renewed thereafter. Pollution clearance ensures that the textile business adopts eco-friendly practices and contributes to the conservation of the environment.