Must have Checklist for Starting a Fitness Centre in India

Starting a fitness center or gym in India

Registration of the Gym or fitness centre: You can set up such business as the Limited Liability Partnership or as a PVT. LTD. company. By choosing either of the options you will be in a position to transfer shares. You can apply for provisional registration certificate for any item that does not require an industrial license. A provisional registration certificate will be given to you. Note provisional registration certificate is valid only for short term. Once you get all the clearance, you can apply for permanent registration.

Shops and Establishment Registration: Once fix up on the location to have the gym. Shops and Establishments Act, is enacted by every state in India to regulate conditions of work, and to provide for regulation of the employers and rights of the employees in un-organized sector of employment and other establishments. By doing this registration, you will be legally allowed to have the gym operations from the selected location.

Service Tax Registration: If your fitness centres’ charge a monthly/periodic amount as membership fee and only members are allowed to avail their services. Service tax would be leviable on periodic/monthly membership fee. Note: It is clarified that institutes and research center involved in giving Yoga, do not fall in the category of health club and fitness centre and accordingly would not be liable to service tax. The Indian government requires us to pay service tax if it is expected that the turnover would be more than 10 lakhs.

Trainers Contracts: You would also need qualified personnel to help you run your business, like trainers and nutritionists. These people should be able to present the necessary credentials and certification. It is important that you as an employer have all the trainers (or Employees) related contracts in place, this would include even the payroll processing.

Clearances: A clearance from the local police apartment is a mandate for operating a fitness centre. Procedure for obtaining Police Department Clearance varies from state to state.

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