By placing regulatory barriers on trade practices and commercial establishments, State Governments in India are binding them through inclusion of special provisions under their respective Shop and Establishment legislations or through imposing a Trade licence on them.
Restrictions placed on business through these licenses and mandatory approvals ensures fair play of all entities within a regulatory framework.
Shop and Establishment Act is a legislation for guiding and regulating commercial behaviour of entities in orgnanized/unorgnized sector where only on obtaining mandatory licenses or approvals from Government, entities are permitted to establish &operate their business with modifications in applicability as per state regulations.
Each State has a distinct policy for obtaining license under Shop & Establishment Act. In some states, it is mandatory for every shop owner, commercial establishment, hotel, restaurant, theatre, amusement park or even those working from home to get their business registered within 30 days of the date of commencement.
The Act is governed by the Department of Labour, it envisages for statutory control over the unorganized sector, rights and duties of labor and maintenance of a healthy work environment.
A Trade license is an authentication by the municipality or trade authorities of the State or locality of the jurisdiction of place of business, which confirms trade practices of a business to all legislations and regulations laid.To know whether a trade license is mandatory or voluntary to obtain it all depends on the policies and legal practices being followed by concerned state and local authorities.
The trade license obtained conforms to the requirement of operating business in such jurisdiction and a conclusive proof of existence of business notwithstanding any other license. The entities can trade in goods or services without fear of seizure or penal implications if they duly comply with applicable laws
Application for registration and compliance under certain legislations is mandatory for business entities. Legal registrations/licenses obtained earmark any business for:
We at MN & Associate are trusted for serving corporate and labor compliance solutions and the legal advisory required on business licensing, company incorporation, intellectual protection, statutory approvals, taxation compliances, arbitration matters, corporate filings and so on. We provide assistance in collaboration with client monitoring and advising on crucial matters.
Working on a paperless approach, we have advisory following service solutions related to Shop Act / Trade licenses:
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