Thousands of people in India are turning to residential properties for business purposes. You may utilise your residential property for business purposes to efficiently work from home and make money, which is a cost-effective and time-saving alternative. As a renter of your residential property, you could wish to open a clinic or a little parlour in one of the rooms. There's no wrong in providing these services from the comfort of your own home, but there are a few things to keep in mind before inviting "clients" inside.
Purchase and sale of material items and services are examples of commercial activity. The action involves money, a risk of loss, and a profit motivation. These tasks are distinct from what we refer to as "professional services," such as those provided by a doctor, lawyer, or accountant.
Is there any legislation in India that governs the use of residential property for business purposes?
What kind of activities are permitted in residential and commercial zones by the zonal authority?
Residential areas-Dwellings, hostels for working persons, old age homes, orphanages, houses of public worship, schools, public libraries, post office, telegraph office, power company, repair places, milk collecting store, and other residential areas may have a place of residence. Anything can thrive in a residential neighbourhood as long as it fulfils the needs of the people on a daily basis.
Certain establishments may be authorised by the local authorities in residential zones under exceptional circumstances.Government offices, cemeteries, golf clubs, banks, hospitals, philanthropic organisations, fuel filling and storage stations, service industries with power up to 10 HP, power looms for silk twisting, internet cafe centres, convenience stores limited to 20 sq.m., doctors consulting rooms where the doctor must be the applicant for permission, pay and use toilets, vehicle parking, and so on are all prohibited.It should be noted that all of the aforementioned enterprises must adhere to the Ministry of Environment and Forest, Government of India's noise limit.
Commercial areas-Commercial districts are devoted to the selling and purchase of goods and have a strong economic component. This is why offices, stores, and service establishments such as beauty parlours, salons, laundries, tailoring shops, hotels, clubs, newspaper publishing, banks, amusement parks, restaurants, and places of worship are all convenient.Establishments that can be created in a commercial area can often be established in a residential area with special authorization, although residential dwellings in a residential area are given precedence.
It should be emphasised that all business enterprises must adhere to certain standards, such as providing enough bathroom facilities for customers.
It is allowed to engage in business activity from the comfort of your home, but you must first obtain authorization from the local government.
Local municipal authority — In the case of the local municipal authority, you will need to describe what type of commercial activity you want to conduct and how much space you will need.
Town & planning authority -The Town Planning Authority divides towns into three categories: commercial, residential, and industrial. The town planning authority's permission is crucial since starting a commercial activity in a residential neighbourhood may be prohibited by the town planning authority.
Landlord-Finally, if you are a renter living in the residential dwelling, you must obtain his consent in the form of a no-objection declaration. The housing organisation might charge the renter a higher maintenance fee or a parking fee.
Is obtaining a licence required before beginning a business operation on my home property?
Yes. If you plan to conduct commercial activity on a residential property, you must first get a licence under your state's Shop and Establishment Act. The legislation governs any location where commercial activity occurs and requires stores and commercial establishments to get a licence before they begin doing business.
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