Sunita Arora 26 April 2022

Pg hostel - business or self employment

If someone is running a Paying Guest Hostel as in Owner and Caretaker of a PG, then is the person doing Business Or this person is into Self Employment legally. If this is Considered as Business then what Category of Business this would come under. If this is called Self employment then how can someone justify it as a profession. Your suggestions/advices are most welcome.

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2 Replies

Divya Vijayan 26 April 2022

Hello mam!

A license is required for running a paying guest hostel and it is very important document. In case one fails to get a license and are running the hostel without obtaining a license then it can be shut down and business owners would have to pay a huge fine for running a hostel without license. In some states it is most important document for running a hostel. One can use this license as a legal proof so that no one can raise any objection regarding legality of the hostel. So paying guest hostel can be a self employed business and anyone can start the business by obtaining proper legal documents.

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 26 April 2022

Hotels and hostels are similar in that they are both sectors of the lodging industry, which simply provide customers with a temporary place to stay in exchange for a nominal fee.