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Comparison

Licenses by Business Type

Licenses aren't a pick-one decision like business structure — most businesses need several at once. Here's what typically applies by the kind of business you're running.

ProprietorshipLLPPrivate Limited
Shop & Establishment ActRequired (any physical premises)Required (any physical premises)Required (any physical premises)
Trade LicenseRequired, food-specific categoryRequired, retail categoryRequired, manufacturing category
FSSAI LicenseRequired — tier depends on scaleOnly if selling any food/beverage itemsOnly if food manufacturing
Legal MetrologyRequired if selling pre-packaged foodRequired if selling any pre-packaged goodsRequired if packaging own product
Professional TaxRequired once you have employees (state-dependent)Required once you have employees (state-dependent)Required once you have employees (state-dependent)
ISO CertificationRarely needed, unless supplying institutionsOnly if pursuing large B2B/retail contractsCommon for tenders and export markets

Running a food business

Expect Shop & Establishment Act, a food-category Trade License, FSSAI, and Legal Metrology if anything is pre-packaged — four licenses is normal, not excessive.

Running a retail shop

Shop & Establishment Act and Trade License are near-universal; Legal Metrology applies the moment you sell anything pre-packaged with a declared quantity.

Running a manufacturing unit

Add Legal Metrology if you package your own product, and treat ISO Certification as a real consideration once tenders or export customers enter the picture.