A trade license grants permission to individuals to carry out business or trade in a particular area. Among getting a trade licence, there are a couple of other licences, permission, and documents that companies should have, before or immediately after opening up. Although there are basic rules across the country, trade licences are handled by state Government’s who create some regulations putting together some standardisation in trade across their state.
Another important document, which is also mandatory by state Government rules, needed when starting a company is the Shop Registration Licence. The Shop Registration Licence in many cases falls under the Shops and Establishments Act which is regulated by the Labour Department under the Indian Government. The main purpose of the Act is to standardise the rules concerning payment of wages, regulations of working hours, leaves, holidays, terms of services and other conditions. The Labour Department steps in to protect the interest of the employees in the organised sector.
Additionally, there are a few additional tasks that the Shops and Registrations Acts handle, which
are mentioned below
* Regulation of employment norms for people of all genders and ages.
* Regulations concerning the maintenance of records and registers
* Regulations concerning the display of notices
* Rules and regulations concerning paid leave
* Conditions for employment and termination
Within 30 days from the commencement of the business, the owner needs to obtain their trade
license. Any individual violating the conditions stated when applying for the license will have it
cancelled by the Government.
There are a few requirements for applicants when they are getting through the Shops Licence
Registration Act. They have to declare the:
* Total working hours of employees in the establishment
* Opening and closing time of the shop or establishment
* The number of breaks an employee can take
* The number of national holidays in a year
* Health and safety measures of the employees (like cleanliness and accidental remedies)
* Extra wages paid for working overtime
* Leave policies of the employees
* Proper record-keeping of employees
Although the process for applying for the Shops Licence Registration is quite easy, there are a
large number of documents needed to make it happen. Some of these documents are:
* ID proofs of the owner of the business like Aadhaar or PAN card
* A Passport size photograph of the owner
* A photo of the shop or establishment with the employer in the photograph
* A list of number of trustees – for a trust
* Rent agreement (for rented apartments)
* Utility bills such as the electricity or water bill of the working premises
* ROC and MOA (Memorandum of Association)
* Number of members and chairman in the co-operative societies
* Address Proof of the Shop or Establishment
* Partnership deed containing vital information like the name of the Company, share a
percentage of partners, and signature of the respective partners
* Certificate of Incorporation as per the Companies Act, 2013
* A permit for transportation from the RTO (Regional Transport Office).
Additionally, the fees for getting Shops and Establishments Act vary from state to state with the
metros being slightly on the higher side.