Trade License: How to obtain Trade License online in Chennai?

Last Updated at: February 10, 2020
2426
Trade License_ How to obtain Trade License online in Chennai_

Are you looking to start a new business? Have you heard about trade licenses? If not, you definitely need to if you want to stay out of trouble! A Trade License acts as a certificate of authentication from the government that an individual or organisation has the right to commence a business venture. Such a document is necessary to start any business in India and is an effort to standardize and legalize trading within the country. This licence helps the government maintain checks and balances on the operations of vendors in India, and ensures that businesses follow certain rules and regulations. 

Here’s a look at everything you need to know about obtaining a trade license in Chennai.

Trade License or the Shop and Establishments Act Licence

In Tamil Nadu, the Trade license is also referred to as the Shop and Establishments Act licence. It is this Act that mentions the rules and regulations that businesses must follow to stay legal in India. 

Here are a few crucial criteria that the government takes into consideration before acknowledging or accrediting a business in India.

  1. Working hours for the company on a daily as well as a weekly basis is monitored. The number of leaves given to the staff, the operating hours of the business and the allocation of total work to different employees are also considered.
  2. Employment norms and whether norms related to lawful employment is being followed.
  3. Rules related to paid leaves and their sanctioning.
  4. Basis of employment and termination and the processes involved for both.
  5. Whether record books and balance sheets are being maintained accurately and appropriately.
  6. The display of required notices in the office of the business, and regulations related to the dimensions, colour and type of print of these notices.
  7. Answerability of the employer towards the employee and vice versa, while also looking at how both of them help the firm and the society as a whole.

Who all require a Trade License?

    • Hotels/restaurants/canteens
    • Food stalls 
    • Bakeries/Ice-cream shops
    • Vegetable and Fruit stalls
    • Meat selling outlet
    • Provisions store
    • Manufacturing industries
    • Factory
    • Production Unit 
    • Flour mills
    • Internet Cafes
    • Saloon
    • Cracker store or business that sells hazardous material

Registration procedure

Urban Areas

    • Access the Tamil Nadu Government’s website and procure Form-1 by paying INR 5.
    • Mention all the details asked in the Form. These include the purpose of trade, personal information of the applicant and Tax details.
    • Once you have filled the form, attest it using your signature.
    • Submit the application to the Commissioner.
    • Once this is done, the Commissioner will analyse the application and if he or she is satisfied with the documents, a licence fee must be paid, after which the licence will be available in a week.
    • Upon expiry, the renewal form for the trade must be filed by March 1st in Municipalities, and 45 days before the end of a fiscal year in Corporation zones.

Get Your Trade License

Panchayat

  • Visit the panchayat website and fill the application available there.
  • Once you file the application, submit it along with the necessary documents.
  • The application is then sent to a sanitary inspector who will then set an appointment date which will be sent to the applicant’s phone via SMS or email.
  • On the prescribed day, the inspector will go to the premises and check whether all the right precautions have been taken. A report will then be made, and if the inspector finds it suitable, the fee details will be specified online.
  • The Sanitary Inspector will forward this report to the Sanitary Officer who will verify the report and remove any irregularities in it.
  • Soon after, an executive officer must receive a file. He will verify it and if it is satisfactory, he or she will endorse it.
  • During any of these stages, if the officer’s feel anything is missing, they will return the file to their subordinate and ask for re-checks.
  • Once approved, a demand notice for the fee is filed.
  • Once the payment is made, the licence is issued.

Online registration

  • Visit this portal.
  • Register by providing the necessary details.
  • After you receive the username and password, log in to the platform.
  • Go to the Applications tab, and look for the Trade License option.
  • Fill in the required application and attach the necessary documents, which have been mentioned below.
  • Once you submit the application, the applicant will receive an acknowledgement slip.
  • The ARO of the Zone for verification receives the application.
  • Once on-site verification is complete, a report will be sent to the Zonal officer. 
  • If they find it to be satisfactory, the applicant must make the required payment online, following which the Trade license will be issued via email.

Documents required

  1. Identity Proof- Aadhaar, Driving Licence, Passport, Voter’s ID
  2. Address Proof- Aadhaar Card, Driving Licence, Ration Card, Utility/Electricity/Water Bill, Tax Returns certificate
  3. Property tax receipt of the office building 
  4. Rental or Lease agreement for rented office-spaces.
  5. Affidavit on an INR 20 stamp-paper declaring the kind of the trade and area of operation.
  6. Passport-sized photograph of the applicant
  7. No Objection Certificate from the concerned District Fire Officer or Pollution Control Board or Inspector of Factories(in case the business employs more than nine people) if applicable.
  8. Installation license.

If the factory employs steam or some other power source, then they must also submit:

  • Building permit of the factory.
  • Power source and machinery details
  • Certificate of Approval from the Inspector of Factories in case they employ more than 9 people.
  • Certificate from the Deputy Director of Public Health. 
  • No Objection Certificate from both the Fire and IRS.
  • Consent from TNPCB 

What is an Installation License?

This is an exclusive license that is mandatory in case the business employs heavy machinery. The TPO issues it and the trade makes use of machines that have a higher power rating than 5 HP. While applying for the installation licence, the owner must provide details such as device specifications, installation diagram and time of purchase to the Council. Also, such machines may be used only in industrial zones. And hence offices or workshops making use of such equipment doesn’t locate itself in the residential areas.

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Trade License: How to obtain Trade License online in Chennai?

2426

Are you looking to start a new business? Have you heard about trade licenses? If not, you definitely need to if you want to stay out of trouble! A Trade License acts as a certificate of authentication from the government that an individual or organisation has the right to commence a business venture. Such a document is necessary to start any business in India and is an effort to standardize and legalize trading within the country. This licence helps the government maintain checks and balances on the operations of vendors in India, and ensures that businesses follow certain rules and regulations. 

Here’s a look at everything you need to know about obtaining a trade license in Chennai.

Trade License or the Shop and Establishments Act Licence

In Tamil Nadu, the Trade license is also referred to as the Shop and Establishments Act licence. It is this Act that mentions the rules and regulations that businesses must follow to stay legal in India. 

Here are a few crucial criteria that the government takes into consideration before acknowledging or accrediting a business in India.

  1. Working hours for the company on a daily as well as a weekly basis is monitored. The number of leaves given to the staff, the operating hours of the business and the allocation of total work to different employees are also considered.
  2. Employment norms and whether norms related to lawful employment is being followed.
  3. Rules related to paid leaves and their sanctioning.
  4. Basis of employment and termination and the processes involved for both.
  5. Whether record books and balance sheets are being maintained accurately and appropriately.
  6. The display of required notices in the office of the business, and regulations related to the dimensions, colour and type of print of these notices.
  7. Answerability of the employer towards the employee and vice versa, while also looking at how both of them help the firm and the society as a whole.

Who all require a Trade License?

    • Hotels/restaurants/canteens
    • Food stalls 
    • Bakeries/Ice-cream shops
    • Vegetable and Fruit stalls
    • Meat selling outlet
    • Provisions store
    • Manufacturing industries
    • Factory
    • Production Unit 
    • Flour mills
    • Internet Cafes
    • Saloon
    • Cracker store or business that sells hazardous material

Registration procedure

Urban Areas

    • Access the Tamil Nadu Government’s website and procure Form-1 by paying INR 5.
    • Mention all the details asked in the Form. These include the purpose of trade, personal information of the applicant and Tax details.
    • Once you have filled the form, attest it using your signature.
    • Submit the application to the Commissioner.
    • Once this is done, the Commissioner will analyse the application and if he or she is satisfied with the documents, a licence fee must be paid, after which the licence will be available in a week.
    • Upon expiry, the renewal form for the trade must be filed by March 1st in Municipalities, and 45 days before the end of a fiscal year in Corporation zones.

Get Your Trade License

Panchayat

  • Visit the panchayat website and fill the application available there.
  • Once you file the application, submit it along with the necessary documents.
  • The application is then sent to a sanitary inspector who will then set an appointment date which will be sent to the applicant’s phone via SMS or email.
  • On the prescribed day, the inspector will go to the premises and check whether all the right precautions have been taken. A report will then be made, and if the inspector finds it suitable, the fee details will be specified online.
  • The Sanitary Inspector will forward this report to the Sanitary Officer who will verify the report and remove any irregularities in it.
  • Soon after, an executive officer must receive a file. He will verify it and if it is satisfactory, he or she will endorse it.
  • During any of these stages, if the officer’s feel anything is missing, they will return the file to their subordinate and ask for re-checks.
  • Once approved, a demand notice for the fee is filed.
  • Once the payment is made, the licence is issued.

Online registration

  • Visit this portal.
  • Register by providing the necessary details.
  • After you receive the username and password, log in to the platform.
  • Go to the Applications tab, and look for the Trade License option.
  • Fill in the required application and attach the necessary documents, which have been mentioned below.
  • Once you submit the application, the applicant will receive an acknowledgement slip.
  • The ARO of the Zone for verification receives the application.
  • Once on-site verification is complete, a report will be sent to the Zonal officer. 
  • If they find it to be satisfactory, the applicant must make the required payment online, following which the Trade license will be issued via email.

Documents required

  1. Identity Proof- Aadhaar, Driving Licence, Passport, Voter’s ID
  2. Address Proof- Aadhaar Card, Driving Licence, Ration Card, Utility/Electricity/Water Bill, Tax Returns certificate
  3. Property tax receipt of the office building 
  4. Rental or Lease agreement for rented office-spaces.
  5. Affidavit on an INR 20 stamp-paper declaring the kind of the trade and area of operation.
  6. Passport-sized photograph of the applicant
  7. No Objection Certificate from the concerned District Fire Officer or Pollution Control Board or Inspector of Factories(in case the business employs more than nine people) if applicable.
  8. Installation license.

If the factory employs steam or some other power source, then they must also submit:

  • Building permit of the factory.
  • Power source and machinery details
  • Certificate of Approval from the Inspector of Factories in case they employ more than 9 people.
  • Certificate from the Deputy Director of Public Health. 
  • No Objection Certificate from both the Fire and IRS.
  • Consent from TNPCB 

What is an Installation License?

This is an exclusive license that is mandatory in case the business employs heavy machinery. The TPO issues it and the trade makes use of machines that have a higher power rating than 5 HP. While applying for the installation licence, the owner must provide details such as device specifications, installation diagram and time of purchase to the Council. Also, such machines may be used only in industrial zones. And hence offices or workshops making use of such equipment doesn’t locate itself in the residential areas.

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