The Odisha Government proposes to get rid of the requirement to renew the registrations of shops and commercial establishments regularly. They created a system where the licences would have to be applied for once, and they would stay valid till they were revoked, or if the establishment shut down, they had to be cancelled through the submission of the undertaking of a closure.
In a recent draft notification, the Odisha Government proposed to make changes to the State Shops and Establishments Act, that is currently under the Labour Department, by way of the Odisha Shops and Commercial Establishments (Amendment) Rules, 2019 (“Draft Amendment”). It proposes to do away with all the documentation and requirements to renew the registration certificate under the Odisha Shops and Commercial Establishment Rules, 1958 (“Rules”).
The Odisha Government creates and provides the Odisha trade license, which is a certificate of authorisation, granting permission to regulate and carry out any forms of trade or business in any locality falling under their jurisdiction. Applying for a licence is mandated by the Orissa Municipal Corporation Act, 2003 to ensure that the business/trade complies with specific rules and safety guidelines. Furthermore, this protects traders from being affected by any health hazards and nuisance by the improper conducting of business.
According to the Odisha Municipal Corporation Act 2003, people entering businesses or other trades such as industries or factories need prior permissions from their respective authorities before starting. Overall, the trade license aims to control businesses, by adding certain constraints and restrictions on people, preventing them from running specific trades from their home, to maintain the separate business environment and preserve the local environment.
Additionally, it prevents entrepreneurs from running unethical businesses, keeping people working in safe environments, without the worry of health hazards and nuisance. It also ensures that safety measures and guidelines are followed, with regular inspections that are carried out. According to the Odisha Municipal Act, running an illegal Trade is an offence, which can lead the concerned authorities to seize or lock the trade or business with or without any intimation.
Although the Shops and Establishments Act and the Trade Licence go hand in hand, they are both processed by different departments. The trade licence is granted by the Odisha Municipality, under the Orissa Municipal Corporation Act, while the former is processed by the Labour department. While one does not have an expiration date, the Trade Licence expires on the 31st of March, every year. It doesn’t matter when the licence has been applied for, it will expire within that year.
All licence renewal applications have to be drafted and applied for not less than one month and not more than three months before the expiration date. The Odisha trade licence takes about 15 days for renewal, from the date that all applications and proper documentation have been submitted to the Municipal Corporation.