Shop Act/ Trade Licenses

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Trade License

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 License

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.

Trade license

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

Why obtain Shop Act / Trade License?

Application for registration and compliance under certain legislations is mandatory for business entities. Legal registrations/licenses obtained earmark any business for:

  • Regulatory approvals and registrations ( PAN, Bank Account, MSME Registration, etc );
  • Legit business doing in the legal purview of authorities ;
  • Limited legal compliances and avoidance of penalties ;
  • No frequent inspections or suspicion of business activities.

Why MN & Associates for Shop Act / Trade License ?

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:

  • Approval under Shop and Establishment Act;
  • Trade License Approval;
  • Renewal/Cancellation of licenses;
  • State / Local Authorities Approvals;
  • Drafting of documents, declarations, reports, project plans;
  • Liasoning with Authorities;
  • Tax Compliances;
  • Factory & Industrial License Approval& license.

For dedicated support required on Shop Act / Trade Licence Approvals and Compliances,Email us at

    • Advice on all the statutory compliances with regard to the provisions of The Companies Act, 2013 and all other previous laws.
    • Secretarial Audit: Providing Complete Audit of Secretarial & Statutory Records with suggestion to rectify the shortcoming and discrepancies observed in the Audit process.
    • Assistance in drafting and vetting of an array of agreements and commercial contracts
    • Expertise in drafting agreements for various Public Sector Undertakings, Real Estate and Construction companies, Telecom companies, Retail sector and various other private and multinational companies
    • Liaison with the relevant offices of the Ministry of Company Affairs, National Company Law Tribunal, National Company Law Appellant Tribunal and other authorities concerned, in respect of various matters pertaining to the affairs of the company
  • Incorporation of all kinds of Companies
  • Annual Filling
  • Various alterations in Company Structure
  • Closure of Companies
  • Secretarial Audit
  • Reconstruction of Companies.
  • Corporate Governance
  • Insolvency and Bankruptcy
  • Regulatory Approvals
  • Legal Due Diligence
  • Joint Ventures, Mergers, Amalgamations and Acquisitions
  • Compliance under Foreign Exchange Laws
  • Intellectual Property Rights: Trademarks, Patents and Copyrights
  • Compliance Management Services
  • Services to NGOs
  • Filing of Balance Sheet in XBRL mode.
  • Obtaining clearances and Approvals from Statutory Authorities and Liasioning with Ministry of Company Affairs, Director General of Foreign Trade for matters relating to Compounding of Offences, Condonation of Delay, Obtaining of IEC Number etc.
    • Compliances of all Listed Compliances

  • Due diligence and feasibility analysis of probable collaborators.
  • Searching the best possible technology and financial partners
  • Drafting of joint venture, technology transfer, collaboration, trade mark license agreements
  • Obtaining necessary approvals from all concerned authorities

  • Amalgamation, mergers, de-mergers and reverse mergers.
  • Acquisitions & takeovers.
  • Reorganization of capital.
  • Valuation of assets and determination of exchange ratios.
  • Liaison and coordination and obtaining approvals.

  • Advice on Foreign Direct Investment in India.
  • Setting up of a business unit in India like a Wholly Owned Subsidiary, Branch Office, Liaison Office.
  • Preparation of business plan/project report.
  • Tax planning with respect to setting up a business in India.
  • Advisory services on pre and post set up compliance with the regulatory and legal framework.

  • IPO, FPO, Preferential Allotment
  • Bonus Issue, Right Issue
  • American Depository Receipt (ADR) / Global Depository Receipt (GDR) Issues
  • Loan Syndication from banks/financial institutions
  • Drafting and vetting of legal papers/prospectus/memorandum of understanding/agreements
  • Liaison and coordination with various regulatory authorities such as SEBI, local stock exchanges, registrar of companies and merchant bankers
  • Carrying out due diligence as a risk containment measure

  • Registration of an NGO with the Registrar of Companies, Registrar of Societies or with the Registrar of Assurances as the case may be
  • Filing of returns, reports and other necessary documents from time to time as per the provisions of the governing statute
  • Drafting of Memorandum and Articles of Association, Memorandum and Rules and Regulations and Trust Deed of a Company, Society and Trust respectively
  • Obtaining necessary approval from the Central Government and complying with all secretarial and other legal compliances

  • Formulating and implementing the Code of Conduct and Whistle Blower Policy
  • Developing risk management framework, its reporting and implementation
  • Formulating, strengthening and implementing internal control measures
  • Ensuring legal compliance with respect to the applicable laws and regulations

  • Matters relating to Insolvency and Liquidation of Companies and LLPs
  • Matters relating to Insolvency and Bankruptcy of Individuals and Firms
  • Representation before National Company Law Tribunal, Debt Recovery Tribunal and other authorities concerned in matters related to insolvency, voluntary liquidation, bankruptcy and winding up