When deciding to become a host in Delhi, it's important to understand the laws that apply. This guide provides useful information to help you understand the relevant regulations for hosting in the National Capital Territory (NCT) of Delhi. This is not exhaustive legal advice, so for specific questions, contact the Licensing Unit of the Delhi Police, other urban local bodies of Delhi, or consult a local lawyer.
Required Permits and Licenses
Hotels, Motels, Guest Houses, Hostels, Lodging Houses, and Boarding Houses
If you plan to list hotels, motels, guest houses, lodging houses, boarding houses, or residential hostels, you must first obtain a license from the Delhi Police. Use the Unified Portal for Licensing of Eating/Lodging & Boarding Establishments in Delhi to start or renew applications. Review the guidelines for the application process and necessary documents. Visit the Delhi Police E-Licensing website for more information.
Homestays and Bed & Breakfasts
The NCT of Delhi (Incredible India) Bed and Breakfast Establishments Act, 2007 ("B&B Act") requires registration for homestays and bed and breakfasts (B&Bs). While registration is recommended, it is not mandatory. Under the B&B Act, a B&B provides lodging and food services to guests. The B&B must be a residential premise where the owner physically resides. Key requirements include:
For detailed information, visit the Delhi Department of Tourism website and refer to the Frequently Asked Questions on B&B registration.
Business and Trade Licensing
You may need additional trade licenses depending on the activities you offer. Refer to the Business Licensing in New Delhi article for more details.
Responsibilities of Hosts
As a host, you must ensure that all your business and trade licenses are up to date and renewed on time. Visit the Delhi Municipal Corporation website for more information on trade licenses.
Contact Information for Hosting in Delhi
If you have questions or need assistance with the registration process or compliance requirements for hosting in Delhi, you can contact the following authorities:
Delhi Tourism Department
Municipal Corporation of Delhi (MCD)
Delhi Fire Services
Delhi Police Licensing Unit
These contacts should provide you with the necessary support and information to help you navigate the hosting regulations in Delhi. If you need any further assistance, reaching out directly to these departments is recommended.
Business Licensing in New Delhi
These information pages can help you get started in learning about some of the laws and registration requirements that may apply to your Trips or Experiences. These pages include summaries of some of the rules that may apply to different sorts of activities and contain links to government resources that you may find helpful.
Please understand that these information pages are not comprehensive and are not legal advice. If you are unsure about how local laws or this information may apply to you or your Experience, we encourage you to check with your city or an attorney.
Please note that we don’t update this information in real-time, so you should confirm that the law has not changed recently.*
When Am I a “Business” or Conducting a "Trade"?
The word “trade” or “business” usually refers to a commercial activity carried out with the aim of earning money or getting some perks. Businesses and trade activities are regulated by law. Generally, a business refers to an activity that is conducted on a regular basis over a period of time. For instance, selling goods in a shop is an everyday affair and not a one-off activity. However, at times, a single and isolated activity (for instance, singing at a concert once in a while for money) could be considered a business under Indian law. We encourage you to consult a legal advisor for guidance. You may also refer to our information page on guiding tours if your Trips or Experiences involve touring.
What if I Am a Business - What Things Should I Be Thinking About? Do Any Business Registration / Licensing Obligations Apply?
You will need to consider the following:
Registrations and Trade Licenses
In general, if you are operating out of physical premises, you may need to register your establishment under the Delhi Shops and Establishment Act, 1954. Examples of an establishment include a shop, restaurant, eating-house, theatre, and art gallery.
In addition, depending on the activity being carried out at a premises, you may also need to get a trade license under the Delhi Municipal Corporation Act, 1957. Some activities that require trade licenses include baking, candle making, pottery, and carpentry. More information on applying for a trade license may be found on the North Delhi Municipal Corporation website.
You may face consequences (for instance financial penalties) if you do not obtain relevant registrations/licenses or are non-compliant with these laws.
Here are some examples of when you are unlikely to be required to obtain registration or a license:
Here is an example of when you are likely to be required to obtain registration or a license:
Even if you do not have fixed premises from where you are offering your Experience, your place of residence may still be considered an establishment or trade premise under the law. We encourage you to consult a legal advisor to ensure that you are complying with the laws.
Activity Specific Licenses
Depending on the activity you will be providing or organizing, you may need to register, obtain licenses, or follow specific rules that apply to that activity. For instance, food and alcohol tasting sessions or touring related Experiences or Trips may require certain permits. Our section on activity-specific licensing requirements and rules covers some of the typical activities but is not intended to be comprehensive. You should always seek advice from a legal professional.
Tax, Accounting, and Insurance
You should also check what tax and accounting rules apply to you, as you may need to pay personal income tax, service tax, sales tax, and VAT in addition to business property tax. If you are conducting a business, you may need to obtain the following registrations for tax purposes:
The above is only an indicative list. Please check with a tax advisor/accountant for guidance on tax registration requirements as failure to pay taxes is an offense. Also, make sure you have the right insurance in place to cover all the activities you will be providing.
What Legal Structure Could I Choose to Use if I Am a Business?
You may consider one of the following options:
Each legal structure has its advantages and disadvantages and we recommend that you consult a legal advisor for guidance on selecting the appropriate option for you. You may also refer to this website for helpful pointers.
Is There Anything Else I Should Keep in Mind?
Yes. You should consider the following:
Carrying on Activities from Your Home
Certain residents' associations such as housing societies and resident welfare associations in New Delhi prohibit the conduct of commercial activities from home under their bye-laws. If you live in a residential premises, you should check that there are no restrictions on offering commercial activities from your house. If you are living in leased premises, check for such conditions in your lease. If you have registered your establishment under The National Capital Territory of Delhi (Incredible India) Bed and Breakfast Establishments (Registration and Regulation) Act, 2007, then you may need to comply with the obligations under such law as well.
Carrying on Commercial Activities from Third Party Premises
You should check that the premises are suitable to offer your activity. This could include checking on whether the third-party premises (for instance, clubs for pub crawls) have necessary permits, and municipal licenses and are safe overall (especially for women and foreigners). You should also consider entering into contractual arrangements with the authorized personnel at such third-party premises.
Employees and Consultants
If you hire employees or consultants, various labor laws may become applicable. Please consult a lawyer/labor law consultant for advice.
Consumer Protection Laws
The Consumer Protection Act, 1986, requires that you do not engage in unfair trade practices or offer deficient services. In particular, you need to ensure that your Trip or Experience listings are accurate, and you offer the services in the manner and for the price that was advertised.
*We are not responsible for the reliability or correctness of the information contained in any links to third-party sites (including any links to legislation and regulations).
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