Establishing and operating a wellness centre or spa in India requires strict adherence to multiple legal and regulatory requirements to ensure public health, safety, and consumer trust. These centres offer services ranging from therapeutic massages, skincare treatments, and yoga sessions to holistic wellness packages. However, due to the sensitive nature of these services and their direct impact on consumer well-being, regulatory oversight has significantly tightened across the country. A valid license is mandatory for any wellness centre or spa, and non-compliance may result in penalties, suspension of business operations, or even criminal prosecution.

In this article, CA Manish Mishra talks about Wellness Centre & Spa License: Legal Requirements.

Legal Framework and Business Setup

The first step toward legal operation is choosing a proper business structure such as a sole proprietorship, partnership, LLP, or private limited company. Once the entity is formed, it must be registered under the respective State’s Shops and Establishment Act, which is compulsory within 30 days of commencing business. This registration not only validates the commercial status of the premises but is also a prerequisite for obtaining other operational licenses and approvals. The registration includes essential details such as the nature of business, working hours, employee count, and address of the spa or wellness centre.

Municipal Health Trade License

A key regulatory requirement for spas is the Health Trade License, issued by the local municipal corporation. This license certifies that the establishment complies with hygiene standards, sanitation protocols, structural requirements, and is fit for public service. The application usually requires submission of layout plans, details of services offered, the qualifications of employed staff, and details of the premises. Most municipalities also conduct physical inspections before issuing the license. Renewal is generally required on an annual basis.

Fire Safety and Structural Compliance

Any establishment dealing with the public must comply with fire safety norms. A No Objection Certificate (NOC) from the local fire department is essential, particularly for establishments with air-conditioning systems, multiple treatment rooms, or electronic equipment. The spa should have adequate ventilation, fire extinguishers, emergency exits, and clear evacuation plans. Additionally, the building should be approved for commercial use and must not be in a residential zone unless special permission has been granted.

Staff Qualification and Background Checks

All therapists, masseurs, and technicians employed at a spa or wellness centre must have relevant certifications in their respective fields—such as naturopathy, yoga, massage therapy, or physiotherapy—from recognized institutions. It is also mandatory for all staff to be at least 18 years of age. Their details, including photographs, ID proofs, and qualification certificates, must be submitted at the time of license application and be available at the premises for inspection. Police verification of staff and the business owner is often required as part of preventive measures to avoid illegal activities.

Client Identity and Record Maintenance

To enhance accountability, wellness centres are required to maintain a register of all clients with basic identification details such as name, contact number, and ID proof (Aadhaar, PAN, Passport, etc.). This practice is particularly emphasized in cities with higher regulatory vigilance to prevent the misuse of spa facilities for illegal purposes. Some jurisdictions also mandate the installation of CCTV cameras in common areas like reception and entry points, with recordings to be stored for a minimum period, often 30 to 90 days.

Adherence to Immoral Traffic Prevention Laws

The Immoral Traffic (Prevention) Act, 1956 strictly prohibits the use of spa or wellness centres for any form of commercial sexual activity. Licensing authorities may revoke licenses or take legal action if a wellness centre is found to be violating this provision. Spas must ensure that private rooms are accessible to inspection, do not have lockable doors from inside, and do not offer services that violate moral or legal standards. The presence of standard operating procedures, transparency in service offerings, and internal policies to restrict unethical practices are important in this regard.

Taxation and Labour Law Compliance

Once operational, wellness centres must obtain GST registration if their turnover exceeds the prescribed threshold. GST is applicable on various wellness and therapeutic services, and centres must issue proper invoices to clients. In addition, they must comply with labour laws including minimum wages, provident fund contributions, working hour limits, and employee welfare schemes. All staff should be issued appointment letters, and employee records should be maintained as per state labour department norms.

Operating Hours and Infrastructure Requirements

Most municipalities allow spas to operate between 9:00 AM and 9:00 PM, and any extension requires specific approval. The physical premises must be clean, well-lit, and have separate changing rooms for men and women. Treatment areas must maintain privacy without compromising safety. Use of clean linens, disposable items for personal care, and sanitized equipment is necessary. Regulatory authorities may conduct periodic inspections, and the wellness centre must remain open for such visits during working hours.

Ongoing Inspections and Penalties for Violations

Authorities such as the municipal health department, police, and labour officials have the right to conduct inspections. If a wellness centre is found operating without proper licenses or violating regulations, it can face penalties including fines, closure notices, and in severe cases, criminal proceedings. Authorities can also seal the premises if illegal activities are suspected. As regulatory awareness increases, many cities have intensified their scrutiny of unlicensed wellness centres, particularly those located in residential zones or those employing unverified staff.

Recent Developments

In recent times, there has been a noticeable push toward standardizing the wellness and spa industry. With increased urbanization and demand for personal wellness services, regulatory bodies have introduced stricter enforcement of licensing norms. Many states have digitized the application and renewal process for health trade licenses, integrated fire and labour clearances into single-window portals, and implemented SOPs for client documentation. There has also been greater awareness around enforcing safety standards, especially in light of concerns around consumer safety and trafficking.

Conclusion

Operating a wellness centre or spa is no longer an informal business activity but a regulated profession subject to multiple layers of compliance. From shop registration and health trade licenses to fire safety and GST, a business must be legally sound and ethically operated. Hiring certified staff, verifying identities, maintaining transparency, and complying with ITPA and municipal norms are essential steps toward running a legitimate and successful spa. Entrepreneurs entering this sector must be well-informed about the legal requirements and make licensing and compliance a priority from day one to build a trustworthy and long-lasting brand in the wellness industry.