How to start a gym business in India?

Gym business is probably could be the best way to earn easy money. In India, gym business is growing at very fast pace and in upcoming 5-10 year’s the numbers are going to be doubled. If you’re planning to start a health club or fitness center then the profit-making chances are going to be higher. 

1. Gym Registration License

In India, the gym must be registered with Limited Liability Partnership or Private Limited Company. This registration ensures proper protection from gym promoters as well as transferability. Transferable options will guarantee further selling options if required.

2. SSI Registration License

A registration with Small Scale Industries (SSI) or Micro Small and Medium Enterprises (MSME) entitle the organization with certain benefits like easy sanction of bank loans, an exemption under Direct Tax Laws or lower rates of interest.

3. Service Tax Registration

If the annual revenue of a gym in India is more than 10 Lakhs, paying service tax becomes mandatory. The application for this registration has to be filled up through “ST-1 form” which can be submitted online.

4. Health Trade License:

Specifically in Delhi, from the year 2014, Municipal Corporation of Delhi has passed a regulation that all fitness centers must be in possession of this license. This license will be responsible for keeping in check the basic health and hygiene standards available to the clients. Under this relatively new policy, the gym-owners to get this license have to submit a list of documents which also includes the health-status of the employees. A breach in this policy will lead to an overall cancellation of business license.

5. Police Permission

When the above-mentioned follow-ups have been regularized, the last remaining sanction is that from the local police station. The police clearance stands mandatory! They will come over to survey your business property and cross-examine all your licenses.

6. Shops and Establishment Registration License

Any business start-up in India needs this license which regulates the rights of employees and employer and governs the working conditions.

7. Application for the issue of police license to run a Gym

Approval from the local police department is a must for a certain kind of business. Apply for the police license through this form. Make sure you are following all the rules.

8. Location

The population of Delhi by the end of 2017 was 27 million, while the city’s area is 1500 km^2. That means 330 people per square kilometers! Keeping in mind the 5 million youth that prefers to go to a gym, to choose a location near a residential or a commercial space sounds justified. More importantly, the place has to have a high visibility rate to attract consumers.

9. Target Audience

A suitable business model needs to be chalked out with a clear consumer-base. Space is integral to the target audience. If a gym is to cater to older people, gentler disciplines of exercise like yoga must be kept in mind, while a women-centric gym must have intensive weight-loss services.

10. Right Equipment

Choosing the right equipment according to your budget and target audience is essential. The basics like weight machines, free weights, weight benches, treadmills, and mats must be of premium quality.