Business Licence for Delivery (Pickup) Point

Is any business licence (Shops & Establishments, GST etc) required to operate Delivery (Pickup) Point for an online business? At this place the vendor delivers the items & customer collects them. Ordering & Payment is done online. Is commercial electrical power required for this place even though power is not used for running the business?

Replies (1)
Licences and registrations required for a delivery/pickup point business depend on the nature and scale of operations. Here is a comprehensive checklist:

1. Business Registration:
- Proprietorship: No formal registration needed, but MSME Udyam Registration is beneficial.
- Partnership/LLP/Company: Register under respective acts.

2. GST Registration: Mandatory if annual turnover exceeds Rs. 20 lakh (Rs. 10 lakh in special category states). For delivery/courier/logistics services, GST registration is advisable even below threshold if B2B clients are involved (for ITC purposes).

3. Shop & Establishment Act: Register under the State's Shops & Establishments Act if you have a physical location and employees. This is a local body requirement and mandatory in most states.

4. Courier/Logistics-Specific Licence: If acting as a courier aggregator/agent for companies like Amazon, Flipkart, Delhivery, etc., you typically operate under their franchise agreement — no separate courier licence needed at the partner/pickup point level. The principal company holds the necessary licences.

5. FSSAI: Not required unless the pickup point stores/handles food products.

6. Trade Licence: Many municipal corporations require a trade/business licence for commercial establishments — check with your local municipal body.

7. Fire NOC: If operating from a warehouse or large storage facility.

8. Professional Tax: Register under State Professional Tax Act if applicable in your state.

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