Trade Licence or Shop & Establishment or Gumasta License

Mandadory for Traders/Establishment doing business 

  • For Shops, Restaurants,Storage of Goods, Salons  etc.
  • Registering Authority is Municipal Corporation/Local Authority
  • Our Pricing Starts @ Rs 4720/- ( Plus Govt fee) 

 

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Trade Licence or Shop & Establishment or Gumasta License

Shop and Establishment Registration at a glance

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.

 

What are the different categories of trade license under Shop and Establishment Act

Food establishment license
Hotels, Restaurants, Canteen, Food stall, Bakeries, the sale of vegetables and meat etc.
Industries license
Small and large scale manufacturing factories, cyber café etc.
Shop license
a Garment shop, Salon, Beauty Parlour, Medical Store, Dry Cleaner, SPA, Gift Shop, etc

Documents requirement for Shop & Establishment Registration ( Tentative - as state to state and As per Business Type varies)

  • Business Address Proof ( Utility bill/Lease deed/Rent Agreement, etc.)
  • Permanent Account Number of Business (if any)
  • Bank account along with a Cancelled cheque.
  • Memorandum/Articles of Association/List of Directors. (In case of company)
  • Photograph, Pan card and ID Proof and Address Proof of all Directors/ Partners
  • Details of Employees & Manager/s

What are the records to be maintained under the Shops and Establishment Act?

  1. Employee Register and Full Details
  2. Payroll Records - Salary Details, Deduction, leave, Overtime, Fines, Holidays, Advance salary
  3. All other details related to an Employee

Our Pricing

For Delhi Registration

Under Delhi Shop & Establishment Act 1954 and Labour Department

Rs. 4720

For Haryana Registration

Under Shop & Commercial Establishment Act and Labour Department

Rs. 4720

For U.P. Registration

Under UP Shops and Commercial Establishments Act and Labour Department

Rs. 9440

For Maharastra Registration

Under Maharashtra Shops and Establishments Act, 1948

Rs. 11800

For Punjab Registration

Under Maharashtra Shops and Establishments Act, 1948

Rs. 9440

For Rajasthan Registration

Under Rajasthan Shops and Establishments Act, 1958 and Labour Department

Rs. 9440

For West Bengal Registration

Under West Bengal Shops and Establishments Act, 1963 and Labour Department

Rs. 8260

For Madhya Pradesh Registration

Under M.P. Shops and Establishments Act, 1958 and Labour Department

Rs. 9440

For Bihar, Jharkand & Chattisgarh

Under the Act applicable to that state and Labour Department

Rs. 9440

For Odisha and North East

Under the Act applicable to that state and Labour Department

Rs. 8260

For all Other States

Under the Act applicable to that state and Labour Department

Rs. 9440

Above fee is our professional service charges. Government Fee ( varies as per business type) and Departmental expenses extra to be paid on actual basis.

Our Service package inclusion for Shop & Establishment License issue

Consultation
Our Expert give on call consultation to client first to make him clear about the process of registration with Labour Department and Documents requirement.
Application Preparation
Our Expert prepare your application and co-ordinate with you for all the relevant employee data, Business Details and documents requirement.
Application Filing
As soon as your documents and Business Details reach to us and your application is Completed in all respect, we start processing your Trade License Registration and submit to Labour Department Online and/or Physically wherever required.
Update Status
We intimate you updated status regularly.
Helps in Departmental Inspection
We guide you how to deal with Labour Inspector in the cases where Inspection is required by the Department.
Registration Certificate
On obtaining approval, trade license certificate is forwarded through courier or in-person.

Registration Process of Shop & Establishment or Trade License

  • Visit Labour Department Website Registration process is fully online Online in many states and in some state semi online. Every state has Labour Department Website and online Registration form available thereon with instructions.
  • Fill up Application Form Carefully fill up the online Application form with particulars of your business. Details varies as per state to state and Business nature.
  • Upload Documents Upload required Documents online after fill up the form.
    OR
    In some state Documents along with Printout of the application form need to submit physically.
  • Pay Fee Fee varies as per business type and License type. Payment option available online in many states otherwise can be payable offline by DD/cash.
  • Inspection Labour Department examine your application and if he think Inspection of your business premises required to verify the particulars you fill up and documents attached, an Inspector is appointed to carried out inspection.
    IN MOST OF THE CASES DOES NOT REQUIRE ANY INSPECTION.
  • Approval & Issue of License After Examination of your application and/or Inspection of business premises. Authority Approve your application and grant a License with validity ( normally valid for 1 year with renewal every year)

What is Shops & Establishments Act?

Shops And Establishment Act 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 or any commercial establishments.

This Act is applicable nationwide to shops, commercial establishments, hotels, restaurants, eating houses, theatres and other places of public amusement or entertainments. 

Every state has his Own Shops And Establishment Act which is more or less same with other states and very less difference or any changes. For Example, in Delhi  it is ‘ Delhi Shops And Establishment Act 1954’

What are the regulations under the Shop and Establishment Act?

This Act sets rules for working hours per day and week, guidelines for spread-over, rest interval, opening and closing hours, closed days, national and religious holidays, overtime work, rules for employment of children, young persons, and women, rules for annual leave, maternity leave, sickness and casual leave, rules for employment and termination of service, maintenance of registers and records and display of notices and obligations of employers as well as employees.

Trade Licence or Shop & Establishment or Gumasta License
FAQs
    • It is important your Application is filed correctly and properly as per legal requirement. Our Experts are well experienced in this line to get your work done smoothly.
    • Yes. We do serve our clients PAN India from our Branch Offices and Associate Partners in Major Cities.
    • Normally 15-20 days if physical submission and/or Departmental Inspection of Premises is essential.
      In some state its a 1-3 days in case of fully online system.
      # Contact FinTax Expert to get state wise details.
    • Every employer shall within 30 days from the date on which the establishment commences its work .
    • There are two major pre-requisites for one to be able to become the applicant of Trade License, they are:
      1. Person must have attained the age of 18 years and
      2. They must not have any criminal records in their name.
    • A license can be denied/cancelled under following conditions: -
      i. In case there is encroachment on government or public land, it shall be ascertained if it is protected under special laws in case it is protected, then the application shall be processed for grant of a Limited License only for the period of such protection and shall stand null and void thereafter.
      ii. The licensee cannot claim / demand immunity from action or penalties on the ground that the Trade License has been granted without verification of such applicable provisions of encroachments.
      iii. License shall be denied/ cancelled in case it is found that there is encroachment on right of way or any other encroachments that are not protected under special laws.
      iv. License is liable to be cancelled if any trade activity is noticed outside the establishment such as storage / display of wares for sale/placement of display board / name board for occupation of the space outside the establishment in any other manner.
      v. Any existing valid license shall be deemed to be cancelled in case of change of ownership / change of address / change of nature of business / change in name of the company or death of the owner.
    • If the licencee fails to comply with any of the conditions of licence, the Authority of the concerned zone or any other authorised officer, after giving notice, revoke or suspend the licence.
    • If the license is denied by the Authority, then you may appeal to standing committee by delivering the denied letter.
    • Running a Shop or Commercial Establishment withour obtaining a Trade License is Illegal as per the Act. The concerned authority may seize or lock your Trade business with or without prior intimation.
    • Yes. You can file an Update with Authority for any changes in Management, Ownership, Business Particulars, etc
    • Government fees varies Business Type and State and State. Minimum Starts at Rs 100 to Rs 50,000/-.
      # TO KNOW EXACT FEES FOR YOUR STATE CONTACT FinTax
    • Yes. Most of the Banks accept this as address proof of the business.
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