A ‘Shop and Establishment Registration’ or popularly known as ‘Trade license’ in many States and ‘Gumasta License’ in Maharashtra.
Shops and Commercial Establishments Act 1958 was enacted to regulate the working hours, weekly/monthly off, payment of wages, terms and condition of employment, holidays, leave etc. of persons employed in shops, commercial establishments.
Trade license issuing authority varies state to state, therefore Rules and Regulations of Trade license varies state to state as per State Shops and Establishment act or Some other specific Act to regulate Shops and Establishments within the state and its process and documentation also varies slightly.
Every employer shall within 30 days from the date on which the establishment commences its work shall file statement together with fees to the Chief Inspector of the area concerned. In some state period for Registering may differ state to state.
Municipal Corporation or Local Authority is the concern department in the state/Locality to issue Trade License.
Shop and Establishment Registration (New Registration)
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Few essential Steps to follow by you or your consultants do on your behalf
Step 1: Prepare all required documentation ( documents applicability varies state to state and nature of business)
Step 2: Make online application to concerned authority ( if Online facility available in many states now)
Step 3: Make payment of Govt. fees and penalty for delay registration
Step 5: Get Certificate online same day
* in many cases takes time 3-15 working days to get the certificate ( in manual filing)
Step 1: Login at government portal ( labour department)
Step 2: Select your certificate no and apply for renew
Step 3: Pay Fee
Step 4: Get Renewed Certificate
Shop & Establishment registration is obtainable on any premises includes residential premises, whereas the Trade license only applies to commercial entities running business at particular commercial place
A person intend to commence any shop or business needs, first need to get his business registered with the Local Government ( example Labour Department) under Shop & Establishment Act. On the other hand, the Trade license is permitted to a person who carries out a particular business.
Further, the rules and regulations for a Trade license are strict wherein, one has to ensure that the company does not perform any unethical practices. While no such laws apply to shops & establishment
Establishments such as canteen, hotels, restaurants, manufacturing industries, grocery , food stalls, etc., requires Trade license. Besides, the Shop and Establishment license pertains to all the shops and commercial establishments that offer different services to the customers.
Shop & Establishment Act governs the rights of employees working and the working conditions of the entity. It includes No. Of employees working, wages, leaves, work hours, but no such hard rule are there under the Trade license.
The time duration to obtain a Trade License is 30 days from commencement of the business. If any individual breach the legal specifications of a permit or cause any nuisance, then the license can get cancelled or revoked.
