The WeAct Initiative, designed to empower women entrepreneurs in rural areas, is a groundbreaking program to bridge the gap between ambition and opportunity. This initiative recognises the unique challenges women face in rural areas and provides them with the necessary resources, including access to various business licenses. Understanding the types of licenses required is essential for WeAct members to operate legally and efficiently, ensuring that their businesses can thrive and contribute to local economies.
Navigating the understanding of business licensing can be challenging, particularly for women in rural areas who may lack access to comprehensive information, education, and support. The WeAct Initiative offers guidance on obtaining essential permits and licenses, ranging from general business licenses to specialized certifications for specific industries. WeAct offers tailored support to women members for the licensing process. Along with empowering them to grow their businesses, WeAct also promotes an environment of legal and economic inclusion.
Please read on to discover the different licensing requirements for the three WeAct categories: Food and Agro, Household Supplies, and Handloom and Handicrafts, as well as some standard requirements common to all three categories.
Standard Requirements
- Business Registration: Registering the business entity (e.g., sole proprietorship, partnership, company) with the relevant authorities.
- Import-Export Code (IEC): For businesses engaged in international trade.
- MSME Registration: Micro, Small, and Medium Enterprises registration can provide various benefits, including easier access to loans and subsidies.
Food and Agro
1.Food Safety and Standards Authority of India (FSSAI) Licence
The Food Safety and Standard Authority of India (FSSAI) is the regulatory authority that ensures the safety of food products in India. All retail stores, trade outlets, kiosks, selling food items, restaurants, caterers, and cloud kitchens are required to abide by and obtain licenses and registration under FSSAI and renew them from time to time. The licensing requirement is categorised as follows:
- FSSAI Basic Registration: Small food businesses with an annual turnover of up to ₹12 lakhs.
- FSSAI State License: For medium-sized food businesses with an annual turnover ranging from ₹12 lakhs to ₹20 crores.
- FSSAI Central License: Large food businesses with an annual turnover exceeding ₹20 crores or operating in multiple states.
2.Health Trade License
In India, a Health Trade License is critical for food and agro-businesses to comply with public health and safety standards. Issued by local municipal corporations or health departments, this license certifies that the business premises meet necessary hygiene, sanitation, and safety norms as stipulated by relevant laws.
The application process for this license involves submitting detailed documentation, including the layout of the premises, identity proof, and proof of adherence to health and safety regulations. Health Trade License legitimises the businesses of WeAct members and helps them gain consumer trust by showcasing a commitment to maintaining high food safety and quality standards.
3.Organic Certification
Organic certification ensures agricultural products are produced following stringent organic farming practices. Governed by the National Programme for Organic Production (NPOP), this certification is issued by accredited certifying bodies under the Agricultural and Processed Food Products Export Development Authority (APEDA).
The certification process includes a detailed assessment of farming practices, including soil management, use of organic seeds, non-use of synthetic fertilisers and pesticides, and sustainable farming techniques. WeAct women must maintain detailed records and undergo regular inspections to ensure compliance. Organic certification enables you to access domestic and international markets and enhances consumer confidence.
Household Supplies
Cosmetic Licence
In the current scenario, India's cosmetic business is booming and expected to triple in the next few years. The awareness of cosmetic products is at an all-time high in India. The cosmetic products business of WeAct members can be so profitable for them. So, obtaining a cosmetic license is one of the needs.
The cosmetic licence meets regulatory standards the Central Drugs Standard Control Organisation (CDSCO) set under the Drugs and Cosmetic Act 1940. This license validates cosmetic products' safety, quality, and efficacy before they can be marketed or distributed. The process involves submitting detailed product information, including ingredients, formulation, and labeling, followed by rigorous scrutiny and approval by the regulatory authorities. Compliance with these regulations ensures consumer safety and promotes trust in cosmetic products.
Handloom and Handicraft
1.Weaver Registration
Weaver Registration in India is an official process allowing individual weavers and handloom cooperative societies to register with governmental authorities, thereby gaining formal recognition. This registration is crucial for WeAct women as it allows them to access a range of government benefits and schemes designed to support and enhance their livelihoods. These benefits include financial assistance, subsidies, training programs, and access to credit facilities at subsidised rates. Moreover, registered women can benefit from social security and insurance schemes, which provide a safety net in times of need.
2.Handloom Mark Registration
Handloom Mark Registration in India is a certification process that authenticates and certifies handloom products as genuinely handwoven, ensuring their quality and authenticity. This mark serves as a hallmark of excellence for WeAct members, guaranteeing that the product is made using traditional handloom techniques and not mass-produced by machines.
The importance of Handloom Mark Registration lies in its ability to protect the interests of both consumers and weavers. For consumers, it offers assurance of the authenticity and superior quality of the handloom products they purchase. At the same time, it helps weavers distinguish their genuine handloom products from imitations, thereby preserving their traditional craftsmanship and providing them with a competitive edge in the market.
3.Geographical Indication (GI) Registration
GI registration is a form of intellectual property protection that designates a product as originating from a specific place, where a given quality, reputation, or other characteristic of the product is essentially attributable to its geographical origin. This registration helps WeAct women preserve the unique identity of regional products, often associated with traditional knowledge and cultural heritage; it ensures that only those who produce the goods within the designated area can use the GI label. Having GI registration results in fair competition and prevents misuse or imitation of the product.
Moreover, it boosts the market value of the product and fosters economic growth within the region. Examples of GI-registered items include Champagne from France, Darjeeling tea from India, and Roquefort cheese from France. GI registration is mandatory for handloom and handicraft products, underscoring its broad applicability in preserving cultural heritage and promoting local economies.
1.Artisan Registration
Artisan registration is a tool for rural women entrepreneurs, particularly those engaged in traditional crafts and handmade products. This registration formally recognises their skills and craftsmanship, providing them with official credentials that can enhance their market reputation. Artisan registration enables access to various government schemes, subsidies, and training programs to support and promote traditional arts and crafts. It also opens up opportunities for participation in national and international fairs and exhibitions, thereby expanding their market reach. Additionally, registered women artisans can benefit from better product pricing through direct market linkages and reducing the exploitation by middlemen.
2.EPCH Membership
Membership in the Export Promotion Council for Handicrafts (EPCH) is an opportunity for WeAct rural women entrepreneurs to engage in the handicrafts sector. It provides access to a vast network of national and international buyers, significantly enhancing market reach and export potential.
Their various initiatives, such as trade fairs and exhibitions, help WeAct entrepreneurs to showcase their products to a global audience, opening up new avenues for business growth. Additionally, EPCH offers valuable resources such as market intelligence, industry reports, and training programs on export procedures and quality standards, equipping rural women with the knowledge and skills necessary to compete in the global market.
- Handicraft Mark Certification:
- Trademark Registration:
Common Compliance for all Three Categories
1.GST Registration
GST (Goods and Services Tax) registration can be a significant step for WeAct entrepreneurs, offering various benefits that can enhance their business prospects. GST registration can legally expand WeAct members' market reach beyond local boundaries, facilitating interstate trade and e-commerce. It also provides an opportunity to avail input tax credits, reducing the overall cost of goods and services. Additionally, GST compliance can enhance the credibility and professionalism of their enterprise, attracting more customers and potential investors. GST registration can also open doors to government schemes and subsidies to empower women entrepreneurs.
2.Trademark Registration
Trademark registration protects rural women’s brand identity and ensures the exclusivity of their products. It can prevent others from using similar names, logos, and symbols that could dilute their brand value. It acts as a legal protection to enhance the credibility and marketability of businesses owned by WeAct women, building trust and loyalty. It enables them to distinguish their offerings in both local and broader markets. Furthermore, it can open up opportunities for franchising and expansion, thereby contributing to their business growth and success.
Conclusion
The WeAct initiative is pivotal in empowering women entrepreneurs in rural areas by addressing the critical need for understanding and obtaining various business licenses. We ensure that our members can navigate the complexities of legal requirements, resulting in legal and economic inclusion. WeAct facilitates the growth of individual businesses and contributes significantly to local economies by promoting safe, high-quality, and authentic products. As WeAct members comply with these regulatory standards, they gain consumer trust, access to broader markets, and the opportunity to preserve and showcase their unique cultural heritage through various certifications and registrations.
References
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