Paying Guest(PG) Registration in India- Documents, Process, Fees

Updated on March 27, 2024 03:33:53 PM

Paying Guest(PG) Registration: Paying Guest(PG) is truly a boon for those singles who are shifting or relocating to metro cities leaving behind their loved ones in their hometowns in search of new job, college or universities. Although Paying Guest registration or PG registration is also required to start Paying Guest (PG) Business in India. Go through the page to know everything about a Paying Guest Registration in India such as documents required, fees, licenses and permit for PG registration etc.

Paying Guest business needs various licenses and approvals from the government. Seeking these approvals directly can be cumbersome for the business owners. Therefore consult with experts at Professional Utilities to get Paying Guest License registration.

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What is a Paying Guest(PG) Business?

Paying Guest(PG) refers to situations when a person pays rent for housing and amenities including power, water, housekeeping, and occasionally food while residing in someone else's home or property. Because working professionals and students prefer to live closer to corporate hubs or educational institutions to cut down on commute time and expenses, the notion of PG is often well known in these places.

Paying Guest Business is similar to homestay business in some aspects. In PG & Homestay applicants or the owner of the property allow clients or guests in their home. In Homestay, they provide them a room with all facilities for 2 or 3 days for vacation or holiday period but PGs are offered for months or years.

Before starting Paying Guests Business, you must register your PG From local municipal authorities, paying Guest accommodation requires a license for processing. Every Municipal Corporation has its own rules & regulations, including the prescribed PG rules and regulations by the government, which need to be followed for the registration process as well as for further operations of paying guests.

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Documents For Paying Guest(PG) Registration

The list of documents required for the registration of paying guest business are as follows:

  • No Objection Certificate: NOC is required from the owner of the property to use the premises for commercial purposes.
  • Building Completion Certificate: Building Completion Certificate if constructing a new building or renovating the old one from the local development authority.
  • Trade License: Trade License is required as it grants permission to run a commercial establishment as a paying guest (PG). Trade licenses can be obtained by local municipalities or corporations.
  • Police Verification: Police Verification Certificate is required for your own security and safety especially security personnel or employees who interact directly with residents.
  • Fire Safety Certificate: Specific fire safety measures, such as installing fire extinguishers, smoke detectors, fire exits, and conducting regular fire safety audits are important as they prevent future mishappening. Obtain a Fire Safety Certificate of all these measures with fire safety regulations.
  • GST Registration: If your annual revenue exceeds the government-specified level, you must register for GST. A single tax called the GST replaces a number of other indirect taxes on goods and services.
  • Property Insurance: uTo protect yourself from unforeseeable occurrences like fire, theft, or natural disasters, think about getting property insurance. In the event that the property is damaged, this insurance aids in covering the expense of repairs or reconstruction.
  • Health & Sanitation Certificate: Obtain a Health and Sanitation Certificate to ensure adequate sanitation and hygiene practices. In order to set up a Paying Guest Hostel, this may necessitate routine inspections by health officials to verify the property's upkeep and cleanliness.
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Process of Paying Guest(PG) License Registration

The detailed process of Paying Guest Business Registration is as follows:

Step 1: Application for PG Registration

Once you arrange all the necessary documents, you can visit the official website of your local municipal council where you can file an application or fill an online form.

Ladies PG/Hostel registration Form is necessary if you are starting a Girls PG/Hostel.

Step 2: Submit Required Documents

Along with the application of PG or Paying Guest license registration it is required to submit all the necessary documents such as the list of facilities, legal permissions, identity proof of owner and address proof of property etc.

Step 3: Police Permissions

Police Permission certificates are necessary in many states. Depending on the state of PG registration, it is required to file an application with the police authorities and take necessary permissions.

Step 4: Verification & Inspection

Once you fill all the details & submit your application along with all documents, an inspection will be conducted by the authorities. The authorities will verify the location and all the basic services.

Step 5: Issuance of PG License

After the inspection authorities grant you a license but if there is any wrong or false information found in the application which does not match during the visit, the registration of PG will be canceled at that time.

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Registration Fees for Paying Guest(PG) Registration

The total registration fee for Paying Guest(PG) license registration in India is ₹14,999 including Government fee as well as professional fee of professional Utilities.

Paying Guest(PG) Registration Registration Fees
Government Charges ₹5,000
Professional Fees ₹9,999
Total Cost ₹14,999

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Benefits Of Paying Guest(PG) Business

The Benefits of starting a Paying Guests business are as follows:

  • Safe & Secure: For those parents whose children live in PGs while studying, safety is the first priority. PGs provide security to students or any other living in PGs by providing CCTVs, watchmen, security guard, etc.
  • Proximity Benefit: Most of the PGs are located near offices and universities to reduce the traveling time. The PGs located at such places have easy access to public transport, markets, malls, libraries, hospitals, medical stores, restaurants and malls, etc.
  • Freedom: You won't have to give up your freedom because the majority of PG accommodations don't have tight curfew requirements. You are welcome to spend the night at your friend's house. Simply enter the register and indicate the check-out and check-in times.
  • Social Interactions: For some people, living away from home is challenging. They are surrounded by loneliness and homesickness. However, if one stays in paid-for accommodations, they can socialize with people besides their family and create friends. The people who live in PG typically share rooms with others, which results in the formation of close friendships.
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Facilities Provided By Paying Guests(PG)

PGs provide certain facilities to their tenants. The facilities are as follow:

  1. Infrastructure: A paying guest typically receives a furnished room as well as access to a bathroom, whether it be attached or not. The majority of PGs furnish the room with a bed, a geyser, an almirah, a table, and a chair. However, some additionally offer audio systems and televisions in a communal area or occasionally in the room. A few sizable PGs also have parking available.
  2. Food: Most PG lodgings provide food, usually from a predetermined menu. Meal times are typically predetermined. In some instances, a separate kitchenette with a stove and gas hookup, sufficient cookware, and a refrigerator is offered.
  3. Laundry: Each room may occasionally have its own washer and iron, though most often there is just one washer available for everyone to use. However, a lot of visitors don't have the time to do their own laundry and instead opt to hire a local domestic worker or washerwoman (Dhobi) in exchange for a little charge.
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Why PG over a Flat?

Many people live in PGs, Flat, Hostel, etc during their jobs or study period. There are so many factors on which basis PG is a preferable choice than Flat. The reasons are explained in following table:

Basis Flat/Apartment PG Accommodation
Cost Renting the entire flat is costlier Cost is less as compared to flat because the guest gets only a portion of the house.
Responsibility Responsibilities are more as the tenant has to take care of the entire house. Responsibilities are less as the owner of the PG will take care of the food and provide all basic amenities like electricity, fridge, etc.
Preference Families generally prefer flats as it provides privacy but costlier on the other hand as well. Individual students or single working professionals prefer PG as it provides the food facility accompanied by other services like cleaning, etc
Safety Safety & Security is all your responsibility PG provides safety & securities such as CCTVs, Watchmen, Security Guard, etc.
Budget Friendly In Flat you need to pay bills such as Electricity, Water, maintenance, etc In most of the PGs you don't need to pay any bill. Most of the bills are included in the rent only.
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Conclusion

The process of PG registration is a multifaceted journey that involves careful planning, documentation, and adherence to timelines. It signifies the commencement of an academic adventure that can have a profound impact on personal and professional growth.

If you're planning on starting your own Paying Guest Business you can connect with Professional Utilities Experts.

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FAQs

Why is PG Registration Important?

To start a PG Business in India, it is mandatory for the property owners to register for the Paying Guest registration or PG registration to start operating in India.

What is the process of Paying Guest(PG) registration?

The process of PG or Paying Guest registration involves various steps such as preliminary examination of the property, police inspection, Application filing for PG registration, submitting required documents, and receiving the registration license.

What is the Fee for Paying Guest(PG) Registration?

The total fee for registration of Paying Guest(PG) is ₹14,999 including Government fee as well as professional Fee.

Which is cheaper, PG or Flat?

A PG is cheaper because the guest is given only a portion of the house.

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