Licences and Registrations You Need to Run a Salon in India (2026 Checklist)

A salon in India needs a handful of registrations that apply almost everywhere and a longer list that depends on your state, your building and the size of your team. This checklist takes each one in turn: what it is, who needs it, where to apply, what to keep ready and whether the rule changes from state to state. It also covers the points where owners get caught: the premises, the 10th hire, prepaid packages and the inspector at the door.

Rules on shops, trade licences, fire safety and signage are written by states and cities, and several are changing in 2026. Treat this as your list of questions, then confirm each answer with the office named, or with a local CA.

#The salon licence checklist at a glance

Start with this table, then read the sections that apply to you. "Varies" means the rule, fee or threshold depends on your state or city.

If you are still planning, our guide on how to open a salon in India shows where each of these fits in a 90-day launch plan.

#What triggers which registration as your salon grows?

Most registrations are triggered by an event, not by opening day: crossing a turnover line, hiring a particular employee, or adding a service. Knowing the triggers lets you budget for them before they arrive.

#Choose your business structure before the first registration

Every registration is made in the name of the business, so decide whether you are a proprietorship, partnership, LLP or company before you file anything. A proprietorship uses the owner's own PAN. A partnership, LLP or company is a separate entity with its own PAN; an LLP or company gets one when it is incorporated.

Changing structure later is expensive in time. Moving from a proprietorship to an LLP means a new PAN, a new GST registration, a new Shops & Establishments certificate, a new trade licence, a new bank account, and assigning any trade mark filed in your personal name. If you might take in a partner or investor within two years, ask your CA whether to start as the structure you'll end up in.

Where to apply. Individuals can get a PAN through the Income Tax Department's e-filing portal. A partnership applies for its PAN with its partnership deed; LLPs and companies are set up through the Ministry of Corporate Affairs.

The current account. RBI's KYC rules ask banks to collect proof that a proprietorship actually exists, usually two documents in the business's name. Certificates such as GST registration, Shops & Establishments registration or Udyam are the kind of proof banks ask for, so get the bank's own list before you visit. Keep salon money and personal money in separate accounts from the first day.

#Shops and Establishments registration

Shops & Establishments registration is the state-level registration for a business premises with staff, and almost every salon with a shop needs either a registration or an intimation. The same law sets working hours, weekly offs, leave and the records you keep for staff.

Who needs it. Each state has its own Act. Several follow the central government's 2016 model law, which requires full registration from 10 workers. In Maharashtra, for example, an establishment with fewer than 10 workers only gives an intimation within 60 days of starting business, and a 2025 amendment bill proposed raising that line to 20. Other states' Acts may require registration whatever your size, so check your own state's current rule. A second outlet is a second establishment, so expect to register each one.

Where to apply. The state labour department's online portal, or the state's single-window business portal.

Keep ready. Owner's ID and address proof, PAN, photograph, rent agreement or ownership proof, the landlord's no-objection letter, the date business starts, and the number of workers.

After you register. Display the certificate if your state requires it, and keep attendance, wage and leave records in the form your state prescribes. Build these into your daily routine alongside your salon SOP checklists.

#Municipal trade licence

A trade licence is the municipal body's permission to run a particular trade from a particular premises, and in many cities salons and beauty parlours are on the licensed-trade list. Some cities call it a health trade licence, because the conditions cover hygiene and sanitation.

Ask the municipal office these questions, in these words, before you apply:

Keep ready. Rent agreement or ownership proof, the landlord's no-objection letter, the latest property tax receipt, ID proof and photographs, a simple site plan, and your Shops & Establishments certificate.

Varies by state? Yes, by city.

#GST registration

GST registration lets you collect GST on your bills and pay it to the government, and it becomes compulsory once your turnover crosses ₹20 lakh in a financial year. In Manipur, Mizoram, Nagaland and Tripura the limit for service providers is ₹10 lakh.

What changed in 2025. Since 22 September 2025, salon and beauty services are taxed at a mandatory 5% without input tax credit; there is no option to charge 18% and claim credit. Retail products carry their own rate by HSN code: shampoo and hair oil are at 5%, while hair dye and most skin care stayed at 18%. Our GST guide for salons covers invoices, packages and returns.

Who needs it. The threshold counts your aggregate turnover: services and product sales together, across all your outlets under the same PAN, anywhere in India. Once you cross it, you must apply within 30 days. GST registration is by state, so an outlet in a second state needs its own registration there; a second outlet in the same state is added as an extra place of business. You can register voluntarily before the threshold, which is worth doing if your plan says you'll cross it in year one.

Where to apply. The GST portal, gst.gov.in, under New Registration.

Keep ready. PAN of the business, Aadhaar and photographs of the owners, proof of the place of business (rent agreement, landlord's no-objection letter and an electricity bill or property tax receipt), bank account details, and the partnership deed or incorporation certificate if you have one.

Once registered, every bill must carry your GSTIN and the right rate on each line. Salos Core, for example, is ₹749 a month and bills services and products with their GST shown separately.

#Udyam (MSME) registration

Udyam is the government's free online registration for micro, small and medium enterprises. It is optional, but banks and government schemes often ask for it, it can serve as proof that your business exists, and it qualifies you for the small-enterprise trade mark fee.

Who qualifies. From 1 April 2025, a micro enterprise has up to ₹2.5 crore invested in plant and equipment and up to ₹10 crore turnover.

Where to apply. Only at udyamregistration.gov.in. Registration there costs nothing; other websites that charge for it are selling a service the government gives free. For loans and schemes that use it, see our guide to salon loans and government schemes.

Keep ready. Aadhaar of the proprietor (or of the partner or director applying), the business PAN, and your GSTIN if you are required to have one. Registration is a self-declaration, with no documents to upload.

#Fire NOC

A fire NOC is a certificate from the fire service that a premises meets fire safety rules. Whether your salon needs its own depends on your state's fire rules, the height of the building, your floor area and how the building is classified.

Who needs it. Ask your landlord for the building's fire NOC and occupancy certificate first. Then ask the local fire station or state fire service whether your unit needs a separate NOC. Larger salons, upper floors and premises inside malls or complexes are the ones to check most carefully.

Keep ready. Building plans, occupancy certificate, a layout showing exits, and the list of fire equipment you have installed.

Whatever the rule, do this. Keep extinguishers suited to electrical fires near styling stations, keep exits clear of towel stacks and stock cartons, and store aerosols, nail polish remover and acetone away from dryers and geysers.

#Signage permission

An outdoor board, especially a lit or projecting one, may need permission and a fee under your city's advertisement rules. The rules for a name board on your own shopfront can differ from those for hoardings, so ask before you order the board, and get the landlord's written consent (and the housing society's, in a residential complex).

#Professional tax

Professional tax is a state tax on employment, trades and professions, capped by the Constitution at ₹2,500 per person per year. Not every state levies it. In states that do, an employer registers, deducts the tax from salaries above the state's slab and pays it to the state, and the business or the owner may also have to enrol and pay for itself. Apply to your state's commercial tax or professional tax department.

#Labour Codes, ESI and EPF

The four Labour Codes took effect on 21 November 2025, replacing 29 older labour laws, and they apply to salons like any other employer. Two changes matter straight away: every worker must get an appointment letter, and social security coverage has widened. State rules under the Codes are still being notified, so expect details to change.

Appointment letters. Give every worker a written letter with their role, wages and terms. For the wider process, see our guides on hiring salon staff and salon payroll.

Registration under the Codes. Establishments with 10 or more workers register electronically, on the central Shram Suvidha portal or the state's own portal. Ask your state labour department how this works alongside your Shops & Establishments registration.

ESI. ESIC covers shops with 10 or more employees, for employees earning up to ₹21,000 a month (₹25,000 for persons with disability). The employer pays 3.25% of wages and the employee 0.75%, deposited within 15 days of the end of the month. Under the Codes, coverage extends across the country instead of only to notified areas, and smaller establishments can join voluntarily.

EPF. The EPF law covers establishments with 20 or more employees. The wage ceiling for compulsory coverage rose from ₹15,000 to ₹25,000 a month with effect from 17 September 2026, so check which of your staff now have to be enrolled.

#Music licences

Playing recorded music in your salon counts as playing it to the public, which needs permission for two separate things: the song itself (the music and lyrics) and the sound recording. A personal streaming subscription is generally for personal use and does not give you these rights for a business.

The song. IPRS, a registered copyright society, licenses musical and literary works for its members.

The recording. This is where the law is contested. In April 2025, a Division Bench of the Delhi High Court held, at the interim stage, that PPL could not issue licences for sound recordings while it was not a registered copyright society; the appeal is before the Supreme Court. On 11 June 2026, PPL was registered as a copyright society for sound recordings, and RMPL has also held a registration for that class. Some licensors that are not registered societies also send notices, and High Courts have disagreed on whether they can.

What to do. Ask each licensor in writing which songs, which rights and which premises its licence covers, keep the invoice, and take advice from a copyright lawyer if you get a legal notice. The other route is music whose licence explicitly allows business use.

#Trade mark for your salon's name

A trade mark registration stops anyone else in India registering or trading under a confusingly similar name for the same services. It is optional, but file before you spend on signage, especially if you plan more outlets or your own products: a board, a Google profile and two years of reviews under a name someone else registered first are hard to walk away from.

Which class. Hairdressing and beauty salon services fall in class 44. Own-brand cosmetics and hair products fall in class 3.

Where to apply. Search IP India's public trade mark database first, then file online through IP India. A CA or trade mark attorney can file for you.

The fee. Under the Trade Marks Rules, 2017, the official fee is ₹4,500 per class for individuals, startups and small enterprises filing online, and ₹9,000 for others. Check IP India's current fee schedule before filing.

While it is pending. You can use ™ after your name. Use ® only once the mark is registered.

#Other permissions some salons need

• Food or drinks for sale: a café counter or packaged snacks need FSSAI registration or a licence, through the FoSCoS portal.
• Your own cosmetics: making and selling your own hair oils, packs or creams counts as manufacturing cosmetics, which needs a licence from your state's licensing authority under the Cosmetics Rules, 2020.
• Medical treatments: procedures such as injectables are medical work and bring in medical rules. Take advice before adding them.
• A salon at home: ask the municipal body whether a residential property can be used commercially, and check your housing society's rules.

#What should you do when an inspector visits?

Ask who they are and under which law they are inspecting, then show the certificate and registers that law requires. What decides how an inspection goes is whether your paperwork is in order before anyone arrives.

1. Ask for the inspector's name, designation and department, and the law they are inspecting under. Note it down.
2. Show the certificate for that law (Shops & Establishments, trade licence, fire NOC) and the registers it requires: attendance, wages, leave.
3. If something is missing, ask for it in writing: "Please give me a written notice of what needs to be fixed and by when."
4. Don't sign anything you haven't read, and don't pay any amount without an official receipt.
5. Call your CA or consultant the same day and fix the point within the time given.

#Documents to keep ready, and dates to track

Most applications ask for the same documents, so keep one folder, on paper and as scans.

Put every date in one calendar the day the certificate arrives. A lapsed trade licence or an unpaid ESI month is far easier to prevent than to explain.