A trade license is the Government’s way, through multiple smaller offices, of regulating businesses in a particular locality. They do this to make sure that the companies and people connected to them are safe from health hazard and nuisance by unfair practices and improper carrying of the trade. The issuing of trade licenses are carried out by the municipal corporation granting permission to carry on a particular business at a specific address.
Furthermore, it makes sure the people involved, follow the relevant rules, standards and safety guidelines, without exception. The provisions of trade licenses are laid down by the State government to monitor and regulate trade within a city.
Trade licences are issued for specific premises, and the trade registered under a particular licence can only be carried out at that premise. Running unauthorised businesses is an offence that can result in a penalty and prosecution. Furthermore, for the running of an enterprise, the owner has to apply for a licence at the soonest. While the specific rule might vary depending on the state where they are applied, in Meghalaya, the establishment cannot begin with their business unless they have a licence.
Some Indian state Governments allow for the delay in applying for the licence, giving the company between 15 days to three months to get the licence. Like all licences, once issued, they require a periodical renewal, which is annually in Meghalaya. The renewal application has to be filed at least 30 days before the expiration of the licence.
The process of Trade license registration is often a time consuming and expensive process, but websites are making it a lot easier.
Another document the Government has declared mandatory is the Shops registration licence. Owning a shop or small establishment is a form of business, and the owners must obtain this Registration. Every shop or establishment needs to complete the registration process based on the number of employees working there.
Shops and Establishments can include actual shops, commercial establishments, residential hotels, restaurants, eating houses, theatres, places of public amusement and entertainment. The State Government can add various other establishments, currently not under this Act, by notification in the Official Gazette and declaring it as an establishment for this purposes. It also includes premises Selling goods, either by retail or wholesale Rendering services to customers Store-rooms, godowns, warehouses or workplaces, whether in the same premises or otherwise, used in connection with such trade or business.
Business owners have to compulsorily register under the Shops and Establishment Act and
display their certificate once they go through it. To get through the registration process, they
have to
1. Apply for the inspection in 30 days of starting any work in the shop or establishment. The
application is to be submitted along with the prescribed fees and supporting documents.
2. Handle the in-person inspection, which happens after the Inspector receives the
application form and fees. He then verifies the accuracy and correctness of the
application. Once suitably satisfied, he enters the details in the Register of Establishments
and issues a registration certificate. This certificate is valid for five years.