You need to get a trade license if you want to stay out of trouble! If you’re looking to start a business, you definitely need to! Trade Licenses serve as a government validation that an individual or organization can commence a business. The document is essential for starting a business in India and aims to standardize and legalize trade. In India, this licence ensures that businesses follow certain rules and regulations, and helps to maintain checks and balances. 

The following information will guide you through the process of obtaining a Chennai trade license.

Trade Licence under the Shop and Establishments Act

The Shop and Establishments Act is called the trade license in Tamil Nadu, and it contains the rules and regulations businesses have to follow to remain legal. Here are some crucial criteria in India for accrediting or recognizing a business.

  1. Also monitored are leave entitlements, business hours, and total work allocation among employees in addition to daily and weekly working hours.
  2. Compliance with employment norms related to lawful employment.
  3. Paid leave rules and sanctions.
  4. Employer and employee termination processes.
  5. Accounting records are kept accurately and appropriately.
  6. Regulations related to the size, color, and type of print of notices displayed in the office.
  7. Employee-employer accountability, and how both help the firm and society at large.

Does everyone need a trade license?

  • Hotel/restaurant/café
  • Stalls selling food 
  • Shops that sell cakes and ice cream
  • Stalls selling vegetables and fruits
  • Outlet that sells meat
  • Grocery store
  • Industry manufacturers
  • An industrial facility
  • An organization for production 
  • Mills that grind flour
  • Cafes that offer Internet access
  • Lounge
  • Hazardous materials are sold in cracker stores

Procedures for registering

Located in urban areas

  • By paying INR 5 on the Tamil Nadu Government website, you can get Form-1
  • The Form includes information about the trade, the applicant, and tax details.
  • Attest the form with your signature after filling it out.
  • The Commissioner should be notified.
  • Licenses are issued within a week of the Commissioner’s approval of the documents.
  • Corporations and municipalities must file trade renewal forms by March 1st.

Districts or Panchayats

  • Fill out the application on the panchayat website.
  • Submit your application with the required documents.
  • A sanitary inspector will send an appointment date via SMS or email to the applicant’s phone.
  • If the appointment is deemed appropriate, the fee details will be specified online after the regular inspection.
  • In case of irregularities, this report will be forwarded to the Sanitary Officer.
  • The executive officer will verify it and endorse it if it meets the requirements.
  • If any of these stages are missing, they will return it to their subordinate.
  • Fee demand notices are filed once approved.
  • Licenses are issued after payment.

You can register online

  • You can visit the website.
  • Complete the registration form.
  • Access the platform after receiving the username and password.
  • Look for Trade License under the Applications tab.
  • Please fill out the application and attach the necessary documents.
  • Applicants will receive an acknowledgment once they submit their applications.
  • An ARO receives the application for verification.
  • Zonal officers are notified once on-site verification is complete. 
  • A Trade license will be emailed after the applicant makes the required payment online.

Requirements for documentation

  1. Identify with Aadhaar, Driving Licence, Passport, Voter’s ID
  2. Identities proof – Aadhaar Cards, Driving Licenses, Ration Cards, Utility Bills, Tax Returns
  3. Tax receipt for office building 
  4. Lease or rental agreement for office space.
  5. An affidavit declaring the trade and area of operation on a 20-rupee paper.
  6. An applicant’s passport-sized photo
  7. In case the business employs more than nine people, a No Objection Certificate must be obtained from the local fire officer or pollution control board.
  8. Activation license.

Steam or other power sources must also be documented if the factory employs them:

  • Manufacturing permit.
  • Machines and power sources
  • In case they employ more than 9, they need a certificate of approval.
  • Public Health Deputy Director’s certificate. 
  • Both IRS and Fire Certificates of No Objection.
  • The TNPCB agrees 

How does an Installation License work?

Business owners who use machines with a power rating of more than 5 HP will be issued this license by the TPO. A TPO issues this license. In order for the Council to grant an installation licence, the owner must provide details about the device and the installation. These machines may only be used in industrial zones. Because of this, such offices and workshops don’t locate in residential areas.

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