Trade Licence or Shop & Establishment or Gumasta License

Employers are required to register their establishments within 30 days from the commencement of work by submitting a statement along with the prescribed fees to the Chief Inspector of the relevant area. However, the registration period may differ in some states. The Municipal Corporation or Local Authority of the respective state or locality is the department responsible for issuing trade licenses.

Categories of Trade License under the Shop and Establishment Act

• 1. Food Establishment License
  • o Includes hotels, restaurants, canteens, food stalls, bakeries, and establishments involved in the sale of vegetables and meat.
• 2. Industries License
  • o Covers small and large-scale manufacturing factories, as well as cyber cafes
• 3. Shop License
  • o Applies to garment shops, salons, beauty parlors, medical stores, dry cleaners, spas, gift shops, and similar establishments.

What is the Shops and Establishments Act?

The Shops and Establishments Act was established to regulate various aspects of employment in shops and commercial establishments. This includes working hours, weekly/monthly offs, wage payments, employment terms and conditions, holidays, and leave policies for employees. This act applies nationwide to shops, commercial establishments, hotels, restaurants, eating houses, theaters, and other places of public amusement or entertainment. Each state has its own version of the Shops and Establishments Act, which is generally similar to those in other states, with only minor differences or changes. For instance, in Delhi, it is known as the 'Delhi Shops and Establishments Act 1954.'