Growth and Compliance - Fitness and Lifestyle Industry

Growth and Compliance - Fitness and Lifestyle Industry

Growth and Compliance - Fitness and Lifestyle Industry

A healthy lifestyle is a blend of sundry aspects relating to your everyday routine and simply eating healthy won't help you in achieving that goal. It involves maintaining a well-acclaimed level of fitness which not only helps your body in achieving optimum levels of activities but, it also helps in everyday exercise and proper sleep. When it comes to fitness, the very first thing that comes to our mind is Sports and specifically gyming activities for staying healthy and living a healthy lifestyle. With increasing Food Business in India creating limitless food options which are making people more concerned about their health. People eating out unhealthy food at one point becomes considerable of their weight and health as heavyweight not only discomfort routine activities but also invites a number of diseases and dizziness along with it. The more the number of people focuses on fitness and lifestyle, the more will be the people investing in this industry. 

When we talk about Business in Fitness and Lifestyle Industry, we mean investing in opening Sports Club, Sports Academy, Sports Complex and Gym for getting more revenue from this industry with increase in people’s focus on this industry. This industry is increasing rapidly as unhealthy food causing unwanted diseases may be prevented or their cause can be reduced to the best for a human being. 

When we talk about Business the compliance follow-ups which are most important for starting and maintaining a legal and long-term business in India. But unfortunately, when we talk about legislation laws, India doesn’t have any laws to regulate sports and the sports federations in the country. When starting any proprietary concern, registration of the same is not compulsory. In a proprietorship firm, the individual and the firms are one and the same person in the eyes of law and for taxation purpose. Thus, it depends on the nature of the business structure, whether it needs to be registered or not. 

Structuring a Sports Club/Complex in India: 
  1. Choosing the type of sport: The very first thing you need to decide is which sport(s) is going to be available in your sports club to play for the public. Which sport in really in hype currently. Which sport do you wish to promote through your sports club/complex? 
  2. Location of the Sports club/complex: After deciding the sport the owner(s) must decide the location of the club/complex according to the demands of the chosen sport, easy access to the public, permission of the Municipal Corporation of the chosen area. 
  3. Kind of club/business structure: Club could be of two types: ‘Proprietary club’ and ‘Members club’ the Supreme Court held that where every member is a shareholder and every shareholder is a member then the same would be called as ‘members’ club’. The holding of the property by the agent or trustee must be held for and on behalf of and not a holding antagonistic to the members of the club defines the essence of ‘Members club’. On the other hand, when an individual or a firm or a limited company owns the property while the members are allowed to make use of that property on certain terms defines the essentials of ‘Proprietary Club’. 
  4. Name of the Club and Personnel: Deciding name cannot be considered less important as the name of the club/complex must not in any way infringe the rights of any existing registered brand providing the same services to the public in India. 
  5. Logo: A logo should be decided by doing a trademark search for the purpose of getting a logo which can easily help a club in maintaining a unique identity. 
  6. Coaches: In sports, it is mandatory to have experienced and the right coaches for the members. 
  7. Structure of the organization: after all the department clearance and licensing the club should assign duties to staff according to their eligibility. The structure may vary with the size of the club and its necessities.
  8. Policies: After the establishment of the club, the code of conduct, sexual harassment on workplace, membership policies, registration policies, and equal opportunities policies. 
Emerging Sports Laws and Authorities in India: 

The work of administration and funding of sports in India is in the hands of “Ministry of Youth Affairs and Sports”, which is headed by a cabinet minister and managed by the National Sports Federations. This ministry is responsible to build a good infrastructure of sports and achieving excellence in different sport events conducted in India. Where Administration of the sports activities is in the hands of autonomous bodies, such as Sports Authority of India (SAI), Indian Olympic Association (IOA) and Board of Control for Cricket in India (BCCI). These governing bodies are registered under the Societies Registration Act, 1860 and work as recipients of government’s aid. 

Other concerned Authorities and Policies are: 
  1. National Sports Policy, 1984/2001 
  2. Sports Law and Welfare Association of India 
  3. The Sports Broadcasting Signals (Mandatory Sharing with Prasar Bharati) Act, 2007. 
  4. National Sports Federation
  5. National Anti-Doping Agency (NADA) 
Compliance Management of Sports Club: 

Different Sports federations have made different laws for licensing of a sports club in India, for Example, All India Football Federation in its Act defines Article 6 as Criteria for Licensing of Club in India which needs to be followed: 

  1. Sporting Criteria 
  2. Infrastructure Criteria 
  3. Personnel and Administrative Criteria 
  4. Legal Criteria
  5. Financial Criteria  Where this Federation give license to Football Sports Club in India. Federations of Specific Sport will issue a Specific License only. 
Compliance Management of Gym in India: 

The increasingly unfit scenarios faced by the country is focusing more on being healthy nowadays which is leading to the increasing business of gyms in India, but they somehow fail to comply legally and faces legal complaints and cases against them along with penalties, imprisonment and sometimes permanent sealing of the gym(s). 

Here are the certain compliance which must be taken care of while starting and running a gym in India: 
  1. Clearance from the Police Department for opening a gym. 
  2. Gym Registration under Shop and Establishment Act. 
  3. Small Scale Industry (SSI) Registration 
  4. Goods and Service Tax (GST) Registration, and a lot more.