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Legal and Regulatory Framework Governing Beauty Parlors in India.(Part 1 of 2)
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....egal and Regulatory Framework Governing Beauty Parlors in India.(Part 1 of 2)<br>By: - YAGAY andSUN<br>Other Topics<br>Dated:- 4-6-2025<br>Legal and Regulatory Framework Governing Beauty Parlors in India. (Part 1 of 2) The business of beauty parlors in India, while part of the informal sector in many instances, is subject to a wide range of legal and regulatory provisions at the central, state, ....
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....and municipal levels. These frameworks aim to ensure public health, safety, fair trade practices, labor welfare, and consumer protection. The operation of a beauty parlor entails compliance with multiple laws across different domains such as licensing, taxation, labor regulations, and safety standards. 1. Shops and Establishments Act Every beauty parlor must register under the respective State&#....
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....39;s Shops and Establishments Act. This law governs conditions of work and rights of employees in commercial establishments. The Act covers aspects such as working hours, rest intervals, holidays, termination of employment, and maintenance of registers. The registration must typically be done within 30 days of commencing business, and it must be renewed periodically as per the state-specific requi....
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....rements. 2. Goods and Services Tax (GST) Act Beauty parlors providing taxable services are required to register under the Goods and Services Tax (GST) Act if their turnover exceeds the threshold limit specified (generally Rs. 20 lakhs for most states, and Rs. 10 lakhs for special category states). GST at the rate of 18% is generally applicable on beauty treatment services. Proper invoicing, retu....
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....rn filing, and payment of GST is mandatory for registered entities. 3. Income Tax Act, 1961 Beauty parlors are subject to income tax under the provisions of the Income Tax Act, 1961. Depending on the legal structure of the business-whether it is a sole proprietorship, partnership, LLP, or private limited company-respective provisions relating to tax liability, advance tax, and TDS (Tax Deducted ....
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....at Source) obligations must be followed. 4. Municipal Trade License and Local Health Regulations A trade license from the local municipal authority is essential for operating a beauty parlor. This license ensures that the business complies with local sanitation, hygiene, and public health standards. Some municipal corporations may require periodic inspections to confirm that the facility is clea....
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....n, safe, and not causing nuisance to the neighborhood. Local health regulations may also mandate use of sterilized equipment, proper waste disposal, and availability of first-aid facilities. 5. Labour Laws Beauty parlors employing staff must comply with various labor laws. This includes: * Minimum Wages Act, 1948 - Ensures that employees are paid not less than the prescribed minimum wage. * ....
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....Payment of Wages Act, 1936 - Regulates timely disbursement of wages without unauthorized deductions. * Employees' Provident Fund and Miscellaneous Provisions Act, 1952 - Mandatory for establishments with 20 or more employees. * Employees' State Insurance Act, 1948 - Applicable where the number of employees is 10 or more and wages fall within prescribed limits. * Contract Labour (Regulation a....
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....nd Abolition) Act, 1970 - Applicable if contractual labor is employed. 6. Professional Tax States like Maharashtra, Karnataka, and West Bengal levy a professional tax on employers and employees. Beauty parlors must register and deduct applicable tax from employee salaries and deposit the same with the state government. 7. Fire Safety and Environmental Regulations Depending on the size and stru....
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....cture of the establishment, fire safety compliance is necessary. In some cases, a No Objection Certificate (NOC) from the fire department may be required. Additionally, compliance with environmental norms regarding waste management-especially the disposal of hazardous substances like chemicals, dyes, and sharp instruments-is essential under municipal and state pollution control regulations. 8. Co....
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....nsumer Protection Act, 2019 Beauty parlors are classified as service providers under the Consumer Protection Act, 2019. They are liable for any deficiency in service, misleading advertisements, or use of substandard products. Customers have the right to file complaints with Consumer Disputes Redressal Commissions at district, state, or national levels, depending on the value of claim. 9. Intelle....
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....ctual Property Laws If a beauty parlor uses a unique brand name, logo, or trade dress, it is advisable to register the same under the Trademarks Act, 1999 to secure legal protection against unauthorized use by competitors. Franchised parlors must also ensure compliance with the relevant franchise agreements and trademark usage norms. 10. Drugs and Cosmetics Act, 1940 Use of cosmetics and skin t....
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....reatment products must comply with the safety standards prescribed under the Drugs and Cosmetics Act, 1940 and its allied Rules. Import, sale, or application of any banned or unapproved substances is punishable under this Act. Beauty parlors offering specialized services such as skin peels or hair restoration treatments may also require medical supervision or registration under appropriate health ....
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....regulations. Conclusion Running a beauty parlor in India is not merely about providing aesthetic services-it also involves strict adherence to multiple legal and regulatory compliances. Non-compliance can attract penalties, fines, and in some cases, closure of business. Entrepreneurs must regularly consult legal professionals or compliance experts to stay updated with changing regulations and ma....
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....intain operational legality. Comprehensive documentation, employee training, and proactive engagement with local authorities can ensure smooth and lawful operation of the beauty parlor business. *** <br> Scholarly articles for knowledge sharing by authors, experts, professionals ....