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Shop and Establishment License..

30 August 2018

Can anyone tell me what is Shop and Establishment License and who is supposed to take it..who is the issuing authority..Whether a firm which already got a Trade License, need to take the said license? Also the procedure to obtain it..Sorry..i know this is not something coming under GST topic..still thought of checking with u all.

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4 Replies

Vinod Babu (24191 Points)
Replied 30 August 2018

Shop Establishment is mandatory under the respective state act for every person who is starting any commercial activity like shop or business. Any shop or commercial establishment must apply for Shop and Establishment registration within 30 days of commencing operations. The Application must be submitted to the local municipal corporation of the respective state for getting the license. Even a small trader or a service provider would require this license if he is doing any business or commercial activity. This Act was mainly enacted to regulate the conditions of workers and employees working in a shop or commercial establishments.

What is the Difference between Trade and Shop Establishment License?

Following is the difference in between Trade and Shop Establishment License:

An individual who is going to commence any business or shop needs to get the business registered with the local government in Shop Establishment while trade license is a permission given to a person to carry out a particular business or trade.
Shop and Establishment can also be obtained on residential premises while Trade license can only be obtained on commercial
It is mandatory under the law to get Trade license to make sure that the person is not carrying out any unethical business practices and is following the rules and safety guidelines as issued by the government from time to time. Shop Establishment is mainly required for the small trader and shop owner who is doing any commercial activity.
Trade licenses are mainly required for establishments like hotels, restaurants, canteen, food stall, manufacturing industries, cyber café, etc. while Shop Establishment is required for every shop and commercial establishment who is doing business or providing any services.
For every legal business and service activity, one needs to have a Trade license while shop establishment is required for the small unorganized sector. It protects the workers and employees working conditions as the act lays down the working hours, opening and closing hours, wage rate, weekly holidays, etc. It also lays down the working hours for women in employment and also for child labor
Trade License and Shop Establishment laws vary from state to state as every state has their different laws. The fees for the same also are also different in every state.
Trade License has to be obtained within 30 days of commencement of business. If any individual violates the condition of license or cause nuisance in the neighborhood than the license can be revoked or canceled.
Shop and Establishment Act governs the working conditions and right of workers engaged in the unorganized This includes wage payments, leave and holidays, work hours, etc.

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Harisankar Nair (11 Points)
Replied 30 August 2018

Thanks a lot...

CA Viswanathan (Chartered Accountant in Practise) (269 Points)
Replied 21 February 2019

Shop Act Registration a complete guide refer to this https://virtualauditor.in/learn/shop-act-registration-bangalore/

Dimpi Sharma (Job) (60 Points)
Replied 29 August 2019

Hi, Good Morning Mr. Harishankar Nair Shop Establishment License is also known as shop license which is usually used for establishing a new shop and hotel it is a state-based registration which is valid for one year and it can be renewed after a year. One of my friends got this license from Tradenfill at a very reasonable price. You can also get this license from here. It's really a very trustworthy online business platform.