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Pankaj Tyagi
| Updated: 20 Apr, 2022 | Category: Trade

Trade License in Tamil Nadu: Legalities and Procedure

Trade License in Tamil Nadu
Reading Time: 4 minutes

A trade license is granted by the health department of the concerned municipal corporation against the prescribed application and fee. Conducting business without this license is not permissible under the law. This write-up shall look into the procedure for securing a Trade license in Tamil Nadu.

An overview of the Trade license and Shop Act license

A trade license in Tamil Nadu is also being referred to as a Shop Act license. This said Act sets out norms based on the given criteria that every business needs to comply with;

  • Working hours
  • Opening and closing hours;
  • Holidays
  • Allocation of work
  • Paid leaves
  • Termination.
  • maintenance of registers and records
  • display of notices
  • Duties of employer & employee towards each other

Who needs a Trade license in Tamil Nadu mandatorily?

The given types of business are liable to secure a Trade license in Tamil Nadu

  • Hotels, restaurants, canteen
  • Food stall
  • Bakeries
  • Outlets selling meat and vegetable
  • Manufacturing industries
  • Factories
  • Flour mills
  • cyber cafes

Documents required for Trade license in Tamil Nadu

One has to arrange the following documents for applying for a trade license in Tamil Nadu;

  • Proof of identity and address
  • Documents relating to the building, such as property tax receipt, tenancy paper, or rental agreement
  • Affidavit declaring the type and premises of trade- it must be printed on the non-judicial paper enclosing the stamp of the notary public.
  • Passport six photos
  • NOC issued by the District Fire Officer
  • NOC issued by the concerned PCC
  • Certificate granted by the inspector of factories in case the firm has nine workers.
  • Installation license*

What is the Installation License*?

An installation license is required if there is machinery involved in the trade. The applicant must furnish this licence cum permit for machinery above 5 Horse Power, together with the machine specs and installation diagram, and share the same with the council for permission.

It is worth noting that machinery above five horsepower is not permissible in the commercial zone and not in the residential zone.

Documents Required Under Special Scenarios

Apart from the paperwork above attest, the given documents to avail the grant for the installation of the factory, workshop or workplace:

  • Approval paperwork of the plant and building
  • Detail relating to the machinery plant, power, or premises
  • Documents evidencing the consent of the Inspector of Factories (if applicable)
  • Document reflecting the decision of the Deputy Director of Public Health in Urban Local Bodies (in case of non-availability of Municipal Health Officer)
  • NOC granted by the respective Fire and Revenue Services Department
  • Permission of concerned PCC to set up the workshop/ workplace/ industry

The registration process in Urban Locales

The process of securing, handling or cancelling the trade license differs state-wise and even forms a town or panchayat to that of a city. The section below shows the procedures for both circumstances.

The applicant of a trade license can opt for any region within the Municipality/Corporation limit for any of the purposes cited in schedule 5 of the Tamil Nadu districts Municipalities Act, 1920/ Schedule 4 of the Coimbatore City Municipal Corporation Act, 1981/ Schedule-4 of the Madurai City Municipal Act, 1971.

The section below discussess the procedure to apply for a trade permit in the urban locales of Tamil Nadu:

Step 1:- Secure Form- 1

First, head over to the official portal of the Tamil Nadu government to secure Form-1 by furnishing a fee of Rs. 5.

Step 2:- Fill out the requested Details.

The applicant is required to fill out the following detail in the said form;

  • The name of the applicant,
  • The age of the applicant,
  • The purpose of utilization of the property in question,
  • Mobile/telephone number
  • Residential address
  • Name of the owner of the building
  • Trade license address
  • Property tax Number
  • Date for the previous year
  • Timeline of the license requirement
  • Monthly rentals payable for the building
  • Area of business
  • The details relating to other licenses issued previously
  • The receipt no. of the license amount and date,

Please note that the applicant must enclose his/her signature in the application.

Step 3:- application submission

Next, furnish the duly filled application before the prescribed timeline to the Commissioner.

Step 4: Application vetting

The Commissioner shall then vet the application to determine whether everything complies. Upon successful vetting, the Commissioner shall prompt the applicant to submit the license fee

Conditions around Renewal of trade license

The applicant has to apply got the Renewal after the expiration of the terms of the license. Before March 1st in Municipalities and 45 days before starting the FY in corporations.

Process of Registration in Panchayat

The process of registering in a Panchayat varies from that of a corporation or a municipality. The registration process for the latter is mentioned below:

Step 1:- File e-application

Visit the E-town panchayat website and fill out the prescribed application. Do not forget to attach the requested documents in the standard format.

Step 2:- Inspection decision by Sanitary Inspector

The duly filled application shall reach the sanitary inspector, who will set the date for performing a vetting procedure. An intimation of the same shall be shared with the applicant via email and SMS.

Step 3:- Inspection and Reporting

The inspector vets the business place and the machinery. After that, he/she will draft an inspection report by specifying the particulars on the portal.

Step 4:- Fee submission

The fee details, which are figured out by the council/executive officer, as specified by the concerned inspector in the web-portal

Step 5:- Forward to Sanitary Officer

The Sanitary inspector shares the file and report of inspection with the concerned Sanitary Officer.

Step 6: Scrutinization

The Sanitary Officer (SO) examines the file as well as the inspection report. Post this, he/she may opt to perform another vetting procedure if the situation demands so.

In case of any errors in the file will send it back to the concerned officer.

Step 7:-Forward to the Executive Officer

The Sanitary Officer shares the file with the executive officer for verification and approval[1] .

Step 8:- Demand Notice

Post-approval of the application, the authority concerned shall issue the demand notice directing the applicant to submit the fee.

Step 9:- Issuance of License

The license is granted to the concerned application post submission of the prescribed fees.

Rectifications to the Document

If the concerned parties come across any errors in the application, the same must be shared with the official concerned within 15 days of receiving it. The amended certificate shall then be accorded in due course of time.

Conclusion

Trade License in Tamil Nadu serves as fundamental legal consent for businesses and compels them to abide by the underlying norms and provisions. The paperwork requirement and registration process for a trade license differ state-wise. Thus, it would be beneficial to have a basic comprehension of applicable law before indulging in the registration process

Read our Article:Step By Step Guide For How to Apply Trade License Online

Pankaj Tyagi

Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.

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