Business Licenses in India: FSSAI, IEC, Drug, NBFC and More

Licenses are operational, not optional

Operating a regulated business without the right license is not a paperwork issue — it can lead to product seizure, premises sealing, criminal prosecution and brand damage. Licenses also unlock practical things like marketplace listings, B2B contracts and import-export consignments.

Most-asked licenses, explained

• FSSAI — Mandatory for any business handling food. Basic, State or Central depending on turnover and operations.
• Import Export Code (IEC) — A one-time registration with DGFT, mandatory for cross-border trade.
• Drug License — For wholesale or retail of pharmaceuticals; granted by the State Drugs Control Department.
• NBFC Registration — RBI registration for any company carrying on financial activity as principal business.
• Shop & Establishment — State labour department license, mandatory for any commercial premises.
• Factory License — Required for manufacturing units employing 10+ workers with power, or 20+ without power.

Environmental clearances

Projects in scheduled categories require Environmental Clearance from MoEFCC or the State EIAA, plus Consent to Establish and Consent to Operate from the State Pollution Control Board. Hazardous waste authorisation, water cess registration and biomedical waste authorisation may also apply.

Build the regulatory map before signing the lease — retrofitting compliance into a leased facility is expensive.

Renewals are where most companies slip

Most licenses require renewal every 1–5 years, and most authorities will not send a reminder. Build a renewal calendar with 90-day, 60-day and 30-day alerts. A lapsed FSSAI or Drug License can shut down operations within hours.