Procedure to start paying guest business in nagpur,maharashtra.

Rugved (Querist) 26 August 2014 This query is : Resolved
Hi,

I want to start a paying guest business in Nagpur, Maharashtra. For the same I want to rent a residential flats. I want to do this business by following proper bylaws.

Kindly guide me through the complete procedure required and the legal factors which I should be considering.

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malipeddi jaggarao (Expert) 27 August 2014
First of all if you wish to run this business in rented residential flats, ascertain whether anybody is willing to rent the flats to you for this purpose.
You should obtain the permission from the Municipal Authorities for conversion of residential flats into flats for commercial activity.
Second is you have to apply to the Electricity Board for changing the supply from "domestic" to "Commercial".
You should obtain licence from Shops and Establishment Act.
If the labour is employed more than 20, you should obtain labour licence also.
You might be required to obtain the police clearance also as you are required to ensure the safety of inmates.
Permission from Municipal authorities as the quality of food supply is controlled by them.

This activity cannot be called as Paying Guest Business. It is maintaining a residential Hostel.
Safety of the inmates is very important. You can not take risk of maintaining the flats with mixed genders. You will be held responsible for any illegal activity that might be carried out by the inmates. The other residents will not allow this type of business in their vicinity of flats. The Society/Managing Committee of the flats will not give permission for such activity.

There are many hurdles. Do not think that I am discouraging you. Give thought over the points enlisted by me.

M V Gupta (Expert) 28 August 2014
Well advised by he expert. Better look out for an independent bungalow or building for the purpose, as Societies do not allow such business to be conducted in their premises for several reasons such as security, nuisance and objections by neighbouring flat occupants.