An individual or group can obtain a trade license from the government to start a business. Legally, the paper must guarantee that the business follows established norms and ethics. Business operations conducted without a trade license may jeopardize their legitimacy and result in hefty fines. A trade license in Tamil Nadu is mandatory according to this informative article. Find out more by reading on.
An overview of Shop Act licenses and trade licenses
Trade licenses are also known as Shop Act licenses in Tamil Nadu. All businesses must adhere to the following rules under this Act:
- Time of opening and closing
- Hours of work
- Assignment of duties
- Observance of holidays of holidays
- Leaves that are paid
- Notices displayed
- Record-keeping and register-keeping
- Relationship between recruiter and staff
Also Read: How to Renew Trade License Online?
Tamil Nadu Trade Licenses: Who Needs Them?
Trade licenses are required for the following types of businesses in Tamil Nadu:
- Restaurants, hotels, canteens
- Stalls selling food
- Vegetable and meat outlets
- Bistros and bakeries
- Production facilities
- Industries that manufacture products
- Cafes with internet access
- Mills that grind flour
Documents required for Tamil Nadu trade licenses
The following documents are required to apply for a trade license in Tamil Nadu:
- Documents proving your address and identity, such as tenancy agreements, rental agreements, and property tax receipts.
- Affidavit describing nature and location of trade (printed on non-judicial paper with public stamp of notary.
- A passport containing six photographs.
- A letter of approval from the district fire officer.
- A letter of approval from the relevant PCC.
- A factory inspector will issue a certificate if the company employs nine people.
- Licence for installation.
What Is an Installation License?
The state requires an installation license if machinery is involved. The council should approve a permit and license for machinery with more than 5 horsepower, as well as a machine installation diagram and specifications.
Commercial and residential areas are not permitted to have machinery with more than five horsepower.
Special Circumstances Documents
In addition to the above documents, the following documents are necessary for obtaining a grant for the establishment of a workplace, workshop, or factory:
- Building or plant documentation that has been approved
- A description of the premises, the power system, or the plant
- Inspection of Factories approval documents (if needed)
- In the absence of a Municipal Health Officer, the Deputy Director of Public Health in Urban Bodies makes a decision
- The NOC was issued by the appropriate department of Fire and Revenue Services
- The relevant PCC must approve the establishment of the industry/workplace/workshop
Renewal conditions for trade licenses
The candidate must apply for renewal after the trade license’s term expires. In municipalities, it should be done before 1 March, and in companies, 45 days before the fiscal year starts.
Procedure for registering a panchayat
Panchayats register trade licenses differently from corporations or municipalities. In Tamil Nadu’s Panchayat regions, you can apply for a trade grant in the following ways:
- E-applications should be filed
Application forms can be found on the official website of the E-town panchayat. Don’t forget to include the standard formatted papers.
- Result of the inspection by the sanitary inspector
The sanitary inspector will schedule the vetting process after receiving the correctly completed application. SMS and email notifications will be sent to the candidate when the decision is made.
- Reporting & Inspection
As well as inspecting the machinery, the inspector also inspects the business. They will then write an inspection report outlining the site’s details.
- Fees Payment
Executive officers or councils determine the charge details, as indicated by the relevant inspector on the web portal.
- The Sanitary Officer should receive it
Sanitary inspectors distribute inspection reports and files to Sanitary Officers as appropriate.
As well as reviewing the inspection report, the SO (Sanitary Officer) examines the file. If the scenario requires another vetting step, they may do so. The file will be returned if there are any problems.
- Please send this to the executive officer
For validation and approval, the Sanitary Officer shares the file with the Executive Officer.
- Notification of Demand
As soon as the application is accepted, the relevant authority will send a demand notice asking the applicant to deposit the required amount.
- Issuing of licenses
Licenses are issued to applicants after the required money is received.
The document has been corrected
Within fifteen days of receiving the application, any inconsistencies must be reported to the appropriate body. In due course, the amended certificate will be issueLastly,
Trade licenses serve as essential legal consent and bind enterprises to follow the underlying standards and rules in Tamil Nadu. Each state has its own paperwork and registration process for a trade license. Therefore, it would be beneficial to have a basic understanding of the applicable law before beginning the registration process.