Licenses and Permits Required to Open a Hospital in India

Updated: Sep 2, 2020

India as a developing nation is in a dire need of medical and healthcare centers. Well qualified senior doctors or businessmen thinking to invest in the medical industry should come forward to build more hospitals in India.

However, a hospital isn’t a simple building with physicians, nurses, medical devices, operation theatres, and intensive care units, but it requires basic legal obligations while installing this system. Thus, doctors planning to open a hospital should follow the legal protocols and register their business via a dedicated platform.

This article discusses the different licenses and permits required to open a hospital in India. It is better to adhere to the governing laws in order to avoid legal complications in the future. Let’s dive in.

Registration under Societies Registration Act, 2001

This act is applicable in case the hospital is owned by society. Under this act, many essential parameters of hospital establishment are taken into account. Some of the decisive factors include:

Location of the hospital

  • In what type of locality is the hospital installed? Are there more hospitals in that area?

  • What are the transportation facilities available to reach the hospital?

  • Is the hospital near to the bus stand, railway station, airport, etc.?

  • Is the hospital built on agricultural land or a slum area from where people have been eventually displaced?

  • Is there easy access to electricity and water at this specific location?

Facilities Available

  • Is the hospital well equipped with sufficient beddings, OPDs ICU’s, labs, general and emergency wards?

  • Does the hospital have suitable doctors and other medical staff for its functioning?

  • Is the hospital space hygiene for the staff and the admitted patients?

All the aforementioned questions are pertinent to opening a hospital in India and these parameters are governed by the societies registration act of 2001.

Clinical Establishments Registration and Regulation Act, 2010

The clinical establishment act of 2010 is a central government initiative to cater to the smooth functioning of a hospital. This act prescribes the minimum standards and facilities which must incorporate a clinical or medical establishment.

This act is applicable for both public and private hospitals inclusive of all medical establishments and private clinics. Moreover, each state prescribes certain rules and regulations for the proper operation of this act.

Registration Under Companies Act 2013

This particular act is applicable to corporation owned hospitals and clinics. According to this act, a corporation run hospital or clinic must be registered under the companies' act of 2013 and fulfill and the protocols of regular account audits.

Additionally, this act prescribes certain obligatory requirements such as information on capital structure formation, articles association, allotment of securities, memorandum of associations, etc.

Director Index Numbers (DIN NO.)

The Ministry of Corporate Affairs under the Government of India mandates a unique registration id for each of the directors constituting the director committee of the hospital board. This is a one-time registration process in order to ensure the security of the dedicated members.

Indian Medical Council (IMC) Regulations 2002

The Indian Medical Council issues specific rules and dimensions for the signboard of the hospital (pertaining to its credentials and placement). Besides, other information and relevant details which should be displayed at the hospital comprise:

  • Certificate of registration for the hospital with the municipal authorities

  • IMC/ SMC registration certificate

  • Consultation charges and other related services and procedures

  • Opening and closing timings of the hospital

Vehicle Registration for Ambulances

The Transport department of every state and union territory registers every ambulance used by a hospital.

Indian Trademark Act, 1999

Although not a mandatory requirement, this act is applicable for those hospitals which plan to use a trademark or logo at the hospital gate.

Arms Act, 1959

The hospital should also register under the arms act of 1959 in order to permit its security guards to carry rifles and guns.

Pharmacy Registration for Medical Shops

In this, every medical shop located within the premises of a hospital must be registered under. Besides, separate registrations are available for medical shops within the hospitals and standalone medical shops.

In fact, the government permits shop sizes of specific dimensions under this act. The validity of this registration is for 5 years.

FSSAI Kitchen License

The Ministry of Health and Family Welfare, Department of Food Safety and Standards Authority of India issues a kitchen permit to Indian hospitals. Under this, the hospital needs to maintain important kitchen standards and furnish hygienic services to the patients admitted to the hospital.

Other Important Licenses and Permits

In addition to the above, a hospital also required the following licenses and permits for its operation:


  • Land and construction

  • Electricity and water

  • Sewage system

  • Biomedical waste

  • Permit to store LPG cylinder


  • No Objection Certificate from the Chief Fire Officer

  • No Objection Certificate under Pollution Control Act

  • License for the blood bank

  • Transplantation of Human organs Act, 1994 (for big hospitals)

  • Prenatal Diagnostic Test Act (PNDT), 1996

  • Environment Protection Act 1986

  • Insecticides Act 1968

  • Registration of Births and Deaths Act, 1969

Altogether, doctors and surgeons planning to open a hospital must adhere to the aforementioned guidelines. These permits and licenses are pertinent for the facile operation of a hospital as per the regulatory principles issued by the central and the state governments of India.

And don’t forget to order your medical equipment at post the opening of your hospital. We furnish easy and comfortable procurement of medical and healthcare instruments at affordable and unbeatable prices in India. We wish you good luck with your new venture.

Read these articles for more hospital set-up related information:



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