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License, Licenses

Ever thought of starting a Homestay business and placing it for rent on Airbnb? If yes, then this is a blog is for you. Homestays are gaining popularity among the businesses in unorganized sector all credits goes to the unique experiences which come along with it. In the top 50 emerging tourism destinations of India, homestays form 13 percent of the total accommodation. Building a hotel involves frequent investments; homestays, on the other hand, are created out of rooms which already exist within a property or an entire property in itself, hence involving nominal or no expenditure. Since travelers nowadays are on the lookout for an offbeat approach to learning more about a place or a destination, this concept seems both, lucrative and appealing at the same time. 


The Ministry of Tourism classified fully operational terms of Bed and Breakfast/ Homestay facilities as ‘Incredible India Bed and Breakfast/Homestay Establishments’. The idea behind this is to provide a clean and affordable place for foreigners and domestic tourists including an opportunity for foreign tourist to stay with an Indian family so as to experience Indian customs and traditions.


Incredible India Scheme of Bread and Breakfast regularizing Homestay License:

  1. Speaking of classification, Homestay Establishments is grouped as :
  • Gold
  • Silver

     While the government of Rajasthan only considers Gold and Silver, Kerala, for instance, has a Diamond category added to the homestay too. 

  1. Facilities and services provided will be checked by the Regional Classification Committee. 
  2. Once approved by Ministry of Tourism, will be duly publicized. A directory of such establishments shall be prepared. Short-term training courses in hospitality sector will also be patronized
  3. It is important to get a license that the owner of the homestay (along with family) shall reside in the same establishment
  4. Homestay Establishment is expected to maintain the required standard. Any serious faults will be reported to the Department of Tourism and the Department is free to take any action including cancellation of the classification.
  5. The Committee may recommend a category either higher or lower than the one which you are applied for. In case of category higher than the one you are applied, you will have to deposit the required fee for the recommended category. However, in case of a lower category, there will be no refund of the extra fee.
  6. Any changes in the facilities of the unit should be reported to the Ministry of Tourism, Government of India within 30 days.
  7. After this, a recognition certification will be given to the owner.



Who can apply for  Homestay License?

  1. Individuals or families who own a house of good quality in the state and can spare at least 2 rooms for tourist accommodation.
  2. The classification will be given only in those cases where the owner/promoter of the unit along with his/her family is physically residing in the same unit.
  3. A maximum number of rooms for offering to the tourists shall be limited to 5.
  4. At least one of the family members should be able to communicate in English.
  5. The houses in areas of tourism importance will get priority.

 


Application Form:

Application must be collected from the State Tourism Department Head office or from other concerned district offices. The application for Homestay License must be sent along with the requisite fee to the State Ministry of Tourism. Applications can even be sent to the district level. This makes easier for the establishment in small towns and rural areas. 

 


Mandatory requirements at the time of submitting application form:

Along with the duly filled form, you would require:

  1. Proof of ownership/lease of the building.
  2. Location plan showing access to the building from the major roads.
  3. Plan and elevation of the existing building.
  4. One hard copy and one soft copy of the photographs of the building including the interiors.
  5. Police Clearance Certificate from the Local Station House Officer

After submission of application form, the representatives of the district government come in for a surprise inspection, following which a homestay is recognized and rated as per facility available. The process of acquiring an electrical connection is the same as that of a home, so it varies from state to state. The whole process might take a couple of years. 

 


Application format for an establishment of homestay:

  1. Name of the Homestay Establishment.
  2. Category applied for
  3. Name and address of the promoters/owners with a note on their background
  4. Complete postal address of the Homestay Establishment
  5. Details of the Homestay Establishment.
  6. Photographs of the building including interiors showing types of facilities available, bathroom, living room, bedroom, parking etc.
  7. Details of payment of application fee
  8. Checklist details as per Annexure II
  9. Consent of acceptance of the regulatory conditions (please enclose a copy of the prescribed undertaking as per Annexure III duly signed by the owner of the establishment)

 

Conclusion:

Still, in its nascent stage in India, homestays are gradually increasing their presence to meet the existing demand. To list a homestay establishment on any directory, offline or online, procuring Homestay License would be necessary.

We at Wazzeer are budding entrepreneurs just like you with a bigger vision to transform the industry. Wazzeer simplifies things for you. If you have a business plan and wish to take a leap come on board with us. Get to know about the nuances related to incorporation and starting your business in a hassle-free way.

 

Our experts are right here to align your ideas with reality, to kick-start the procedure to acquire  Homestay License, Let’s Connect -> “Get your Wazzeer”

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Business Registration, Healthcare Startup, Licenses, Start up Lessons
Economists can just turn the table, don’t they? When reports about Healthcare sector expecting to touch $158.2 billion by 2017 came up, entrepreneurs that always wanted to do something big in this sector felt unstoppable. Yes, you got the point! This blog is for all you fans that has been requesting me to write on the e-healthcare sector. So, let’s get on with the basics of starting healthcare business in India.
  1. Business Registration:
This is a must for startups in this sector and probably the first step for starting healthcare business in India. Since there are multiple players involved, raising funds is another major thing to be concerned about, therefore registering it as a PVT. LTD. Company makes sense for most entrepreneurs.
  1. Rules under the IT Act:
  • Data Protection: The patient must be informed that the data is being collected, purpose behind the same and whether it would be transferred to any third parties, along with the contact details of the agency collecting the information.
  • Follow the international standard IS/ISO/IEC 27001 on Information Technology
  • Appoint a ‘Grievance Officer’, whose contact details are to be published on the website.
  1. Privacy Policy:
It is mandatory for startups ( healthcare business in India ) to have a privacy policy in place and published on its website. Although a ‘privacy policy’ is technically a legal document, great effort should be made to craft a document that is both accurate and easy to understand.  
  1. Not to miss OSP Regulations:
If you are planning on starting healthcare business in India that will have Application based Services which includes telemedicine services, you will be required to be registered as an ‘Other Service Provider’  (OSP) with the Department of Telecommunications.  
  1. Abide by the rules of The Drugs and Cosmetics Act (this one is for e-pharmacies)
  • All drugs must be sold under a license. The Rules under this act clearly lay down which drugs can be sold only on the production of a prescription issued by a registered doctor.
  • Drugs which can be sold only on prescription are stated in Schedules H, H1, and X.
  1. The Drugs and Magic Remedies Act, 1954:
If you are going to send Advertisements (promoting anything) to registered medical practitioners and chemists after starting healthcare business in India, you can do only if your documents bear the words ‘For the use only of registered medical practitioners or a hospital or a laboratory’ at the top of the document.  
  1. Unsolicited Commercial Communications Regulations, 2007 and Telecom Commercial Communication Customer Preference Regulations, 2010:
Sending unsolicited commercial communications over voice or SMS are prohibited. However, there is no legal bar over sending transaction messages after starting healthcare business in India.
  1. The Clinical Establishments Act, 2010 (this one is for startups that have clinics as well): Registration with the relevant authority and conform to the minimum standards as prescribed under the act.
  1. Patent:
  • A computer program ‘per se’ is excluded from patentability under Section 3(k) of the Patent Act, 1970., provided it meets the other requirements of CRI.
  • Patents for software programs have been issued in the past where it involves a hardware component as well. If the technology/software fulfils these requirements, you could file for a patent and receive protection if the same is granted. 
  1. Copyright:
  • Software can be protected as a literary work under copyright law.
  • The idea would have to be expressed in some form of medium before it can be protected.
  • Clinical guidelines and data could be protected under the Copyright Act, only if it is expressed in some form of medium.
A2Z of starting a Healthcare Startup  
  1. Design:
Design protection would be the Graphical User Interface (GUI) of applications and the design of the devices and this can be protected under the Designs Act.  
  1. Trademark:
The ‘mark ‘ an e-Health application or device could be registered as a trade mark under the Trademark Act. 
  1. Trade secrets: You can protect the trade secret by signing a Non-Disclosure Agreements with employees to avoid information going out of your roof.
  1. Indirect Taxes:
  • Service tax is 14% payable by the service provider.
  • Value Added Tax (VAT) is levied on the sale of goods within a state and rates vary widely anywhere from 0%-1% to 4%-12.5%.
  • Central Sales Tax is imposed on the sale of goods during interstate trade or commerce.
  1. Corporate Tax
  • Indian residents are taxed on their worldwide income
  • Non-residents are only taxed on income arising from sources in India. 
  1. Follow the standards of NeHa:
NeHA is a promotional, regulatory and standards setting organization to guide and support India’s journey in e-Health. 
  1. Terms of service:
You are required to have the Terms of services document in place, that has all the required information about services like Age verification and other rules.  
  1. Payment Gateway Compliance:
It is mandatory for every ecommerce startup, on a similar line e-healthcare startups should consider doing the same.  
  1. Abiding International jurisdiction:
Every country has its own set of compliance that businesses outside the country should follow.  
  1. Cofounders Agreement:
Importance of having this conversation (or more likely, conversations) early on, explain why a founders? agreement is a valuable tool to maintain a healthy co-founder relationship. It is like defining your marriage with the fellow co-founder.  
  1. License Agreement:
Licensing agreements cover a wide range of well-known situations. For example, a retailer might reach agreement with a professional sports team to develop, produce, and sell merchandise bearing the sports team’s logo. On a similar note, when you provide license to doctors to use your app, it is important that you have a license agreement to support the same.  
  1. Contracts and Agreements:
To protect your relationship with partners or doctors on a long run. The doctors should be able to present the necessary credentials and certification and all these action items included in the contract or agreement would assure quality.  
Startup entails complex procedures and many bureaucratic hurdles, entrepreneurs are better off using professional services. Hiring a virtual lawyer and virtual accountant can save time and help ensure that the process goes smoothly.

For any Legal and Accounting support, Happy to help you, let us talk at Wazzeer.

 
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Business Formation, Business Registration, Contracts and Agreements, Licenses, TAXATION
Bitcoin is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin can be considered to be cash for the Internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence. While there are or have been at least 110 other digital currencies, Bitcoin accounts for 77% of the market value of all digital currencies and an even higher percentage of digital currency users (credits to Pantera capital). This article will help entrepreneurs who dream to start a Bitcoin Startup in India. Here are the rules and regulations that a Bitcoin Startup must follow:
  1. Business Registration: You can set up such business as a PVT. LTD. Or LLP or OPC company.
  1. KYC Norms: KYC Norms are the norms set by the RBI that require banks to continuously monitor their customers’ transactions.
  1. Abide by the principal laws concerning Bitcoin:
    1. The Constitution of India, 1950
    2. The Foreign Exchange Management Act, 1999 (FEMA)
    3. The Reserve Bank of India Act, 1934 (RBI Act)
    4. The Coinage Act, 1906 (Coinage Act)
    5. The Securities Contracts (Regulation) Act, 1956 (SCRA)
    6. The Sale of Goods Act, 1930 (Sale of Goods Act)
    7. The Payment and Settlement Systems Act, 2007 (Payment Act)
    8. Indian Contract Act, 1872 (Contract Act)
  1. Cross border transfer of Bitcoin: FEMA regulates all inbound and outbound foreign exchange related transactions, in effect regulating the capital flows coming into and moving out of the country. 
  1. Taxation of Bitcoin: In India, taxes are levied either by the central and the state governments. Taxes may be on income or expenditure. When taxation is on income, it may be on Bitcoin representing such income. On expenditure meaning cost of acquiring Bitcoin, such as Central Sales Tax, Value-Added Tax or Service Tax.
  1. Income Tax Taxation of income: In India income is governed by the provisions of the Income Tax Act, 1961 (ITA). Under the ITA, residents are subject to tax in India on their worldwide income, whereas non-residents are taxed only on income sourced in India.
  1. Central Sales Tax / Value Added Tax: For a Bitcoin transaction to be taxed under the CST Act, there should be a sale.
  1. Service Tax: Service tax is levied by the central government at 12.36% on all services provided in India except certain specified services. Service providers can take credit for service tax paid on input services utilized and for excise duty paid on inputs and capital goods (barring certain specified inputs). Services provided outside India are not subject to service tax in India. Typically, services are provided in India if the service recipient is in India. The 2015 Budget proposes to increase the rate of service tax to from 12.36% (inclusive of cesses) to 14%.
  1. Trademark: Trademark protection for the word marks that include the term Bitcoin, and various Bitcoin logos is essential for financial institutions dealing in Bitcoin transactions and online payment systems. Bitcoin platforms / Bitcoin exchanges represent marks with various visually or phonetically similar Bitcoin marks, by doing so you can trademark.
  1. Patent: Under Indian patent law, a mathematical or business method or a computer program per se or algorithms are not inventions and are hence not patentable in India.
  1. Copyright: Bitcoin is protocol and software that are published openly and any developer around the world can review the code or make their own modified version of the Bitcoin software. No exclusivity is generally claimed in open source software. Hence, it cannot be copyrighted.
  1. Privacy Policy: Abide by The IT Act, that protects items of sensitive personal data or information (SPDI).
  1. Terms of service: You are required to have the Terms of services document in place, that has all the required information about services like Age verification and other rules.
  1. FDI Regulations: Companies which only provide online services i.e.., Bitcoin may be categorized either under the automatic category or under the category of a non-banking financial services company.
  1. International criminal law: Due to financial security issues and to avoid cyber attacks, it is important that companies pay due considerations while doing business on international soil.
  For any Legal and Accounting support, Happy to help you, let us talk
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Business Formation, Contracts and Agreements, Licenses, Uncategorized

The Food & Beverage service market is worth INR 2,04,438 crore and is expected to reach INR 3,80,000 crore by 2017. The F&B sector has evolved over the past decade, giving rise to exciting new concepts in food and beverage offerings and new and innovative service elements. Amongst the various segments within the restaurant sector, Quick Service Restaurants and Casual Dining Restaurants constitute the largest categories combined they constitute more than 77% of the overall market. The F&B service market is dominated by unorganized segment and although it will decline significantly over the next 4-5 years, it is likely to remain more than 60% of the market. This article talks about different compliance work that a food business should take care of at different stage of growth.

Food startups in India


Start-up process entails complex procedures and many bureaucratic hurdles, entrepreneurs are better off using professional services. Hiring a virtual lawyer and virtual accountant can save time and help ensure that the process goes smoothly. For any Legal and Accounting support, Happy to help you, let us talk 

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License, Licenses, Start up Lessons

Trade License is one of the most important and mandatory registration required for a company. It is a certificate issued by the State Government granting a business permission to carry on with a particular trade for which it has been issued.

Procedure to get Trade License registration done Firstly you need to apply for trade license by filling application form online/offline, and then you will get an acknowledgement letter which you need to submit back to local Municipal Corporation. After submission an inspection will be made at the place of business by Government authorities, here the authority decides the Government fees based on area of the place and number of employees you have.

The process moves forward after the payment of government fees is made, follow which you will get your trade license certificate.   The documents required for Trade License Certificate

  • Rental Agreement
  • Partnership deed/ certificate of incorporation
  • Latest property tax paid receipt
  • Address proof of directors
  • PAN of the entity
  • Consent letter from the owner of place of business
  • NOC from neighbours
procedure for having a trade license for your startup

Wazzeer is vouched by Entrepreneurs as the most reliable Legal and Accounting Partner. We would be super excited to help you. Let’s Connect! 🙂
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GST, Licenses, TAXATION
Every Service provider has to mandatorily apply for Service Tax registration if the turnover of the business in a year exceeds INR 9 lakhs, however if the turnover of the business is less than INR 9 lakhs annually then Service tax registration is optional at the option of the tax payer.

Procedure to get Trade License registration done – You need to apply for service tax registration by filling the form ST 1 which can be submitted online, the first time you need to create an account before filling the details in the ST 1 form. The account created shall be your permanent account for all matters related to service tax.

After logging into your account you need to fill the ST 1 form available there. After applying for service tax registration online you need to take a copy of acknowledgement slip, sign it and submit the hard copy of documents and ST 1 form to the authority, after which you will get Service tax registration number.

Post verification of all your documents by the authority you will receive your Service Tax registration certificate. Documents Required for Service Tax Registration
  • Company Incorporation certificate
  • MoA, AoA
  • PAN card of directors/ partners
  • Address proof of directors/ partners
  • Address proof of place of business
(If rent agreement, then it has to be supported by any utility bill)
  • Authorization letter
  • 4 photographs of proprietor/ partners/ directors
  • Bank Statement


Wazzeer is vouched by Entrepreneurs as the most reliable Legal and Accounting Partner. We would be super excited to help you. Let’s Connect! 🙂
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