Shop Establishment Act

Trade License under Shop and Establishment Act, 1954

Shop and Establishment Act had been introduced in the year 1954, with an object of regulation of hours of work, payment of wages, service-related terms and conditions in shop, establishment and other commercial establishments and matters ancillary to it. The shop and establishment license differs from state to state and each entity has to get a license from the Department of Labor to operate the business.

What is the Trade License?

Every business is required to get approval from the Department of Labour and it can be obtained from the Chief Inspector, Shop and Establishment appointed under the Act.

What are the documents required for the shop and establishment license?

  • Identity and address proof of the applicant.
  • In the case of Company Memorandum of Association (“MOA”) and Article of Association (“AOA”) and certificate of incorporation.
  • Identity proof and an affidavit of every director or member.
  • PAN Card of the Company.
  • Proof of premises like electricity bill, property tax receipt, etc.
  • Rent agreement in case of rental property or the No Objection Certificate (“NOC”) of the owner of the property.

What is the procedure to obtain a Trade License?

Shop License  V/s  Trade License

  • Trade license is required to be obtained for carrying out any particular trade or business whereas the shop license under Shop and establishment Act is required to be obtained for such particular shop or establishment as a business with state Government.
  • Trade license is the proof of not doing any unethical work on such establishment whereas the shop license can be obtained by the small trader or owners for commercial activities.
  • Trade license is basically required for an establishment like restaurant, hotels and manufacture industries, etc. while Shop license is required for every shop or business who providing any goods or services.
  • The Trade license is required for establishments in the commercial areas whereas the shop license is for commercial as well as for residential premises also.

Applicability of Trade License

Trade license is required for commercial establishments that are doing business or providing any services like restaurant and manufacturing industries etc. Trade license is also required to obtain in order to ensure that the activity of the business is not adversely affected to our nations or the people of India.

List of State and Union Territory License:

Following license is issued under different states:-

State/UTC

 

                     Name of License
DELHI TRADE/ STORAGE LICENSE
HARYANA HARYANA TRADE LICENSE
MAHARASHTRA GUMASTA LICENSE
SIKKIM SIKKIM TRADE LICENSE
JHARKHAND MUNICIPAL TRADE LICENSE
MANIPUR MANIPUR TRADE LICENSE
TRIPURA TRIPURA TRADE LICENSE
TELANGANA  TELANGANA TRADE LICENSE
JAMMU AND KASHMIR  J & K TRADE LICENSE
MIZORAM MIZORAM TRADE LICENSE
TAMIL NADU TAMIL NADU TRADE LICENSE
WEST BENGAL WB LICENSE
ANDHRA PRADESH AP TRADE LICENSE
HIMACHAL PRADESH HP TRADE LICENSE
KERALA KERALA TRADE LICENSE
GOA TRADE ESTABLISHMENT/ BUSINESS ESTABLISHMENT  LICENSE
MADHYA PRADESH TRADE/COMMERCIAL  LICENSE
ODISHA ODISHA TRADE LICENSE
ASSAM ASSAM  TRADE LICENSE
BIHAR BIHAR TRADE LICENSE
CHHATTISGARH CHATTISGARH TRADE LICENSE
GUJRAT  GUJRAT TRADE LICENSE
KARNATAKA VYAPAR TRADE LICENSE
PUNJAB TRADE LICENSE PUNJAB
MANIPUR MANIPUR TRADE LICENSE
NAGALAND NAGALAND  TRADE LICENSE
ARUNACHAL PRADESH AP TRADE LICENSE
RAJASTHAN RAJASTHAN TRADE LICENSE
UTTRAKHAND UTTRAKHAND TRADE LICENSE
ANDAMAN & NICOBAR ISLAND

 

A & N  LICENSE
LAKSHADWEEP

 

LAKSHADWEEP TRADE LICENSE
LADAKH

 

LADAKH TRADE LICENSE
DAMAN AND DIU DAMAN TRADE LICENSE

 

PUDUCHERRY

 

PUDUCHERRY TRADE LICENSE

 

CHANDIGARH

 

 CHANDIGARH TRADE LICENSE

Therefore, every business operating in a commercial or residential area the license is must to be applied within 30 days of starting of business. Every time before applying for trade or the shop license the applicability on the entity, nature of business carried on,  jurisdiction must be checked as per relevant state laws.  Each such license can be modified, canceled on the submission of documents in a prescribed application.

Need assistance in applying for Trade License?

Reach us at info@cs-india.com

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