Do Godowns in India Need a Shops & Establishments License? Seeking Your Insights

janardan_raccha
Hi Folks,

As per the subject above, is a license applicable towards the Shops & Establishments Act for godowns running across India? Please share your view on this.
Madhu.T.K
The Shops and Commercial Establishments Act is a state act, and as such, separate acts are available for each state in India. Therefore, you have to take registration for each warehouse separately under the respective State Act.
janardan_raccha
Hi Madhu,

Could you please guide me on whether the Shops and Establishments Act is applicable for godowns, and if registration is required for the following states:

1) Maharashtra
2) Uttar Pradesh
3) Andhra Pradesh

Thank you.
R.N.Khola
Godowns are also covered under the Punjab Shops & Commercial Establishments Act, 1958 as applicable to the states of Haryana, Punjab, and UT Chandigarh.

R N KHOLA
janardan_raccha
Thanks Madhu / Mr. R N Khola,

Now another query on this. For Maharashtra - Is it mandatory for the Godown vendor to also apply for a trade license along with an S&E license?
Madhu.T.K
Any person engaging in business or running a venture should obtain a trade license from the local administration, along with the relevant registration under the Shops Act, Factories Act, Plantations Labour Act, or Mines Act, as applicable. The purpose of the former is to obtain permission to conduct business, while the latter is to ensure proper working conditions for employed individuals. Therefore, individuals operating warehousing operations should ensure they obtain a trade license without fail.
a-a-valjee
Dear All,

Under the Maharashtra Shops and Establishment Act, obtaining a Trade License is not mandatory for either new or old establishments.

Regards,
Madhu.T.K
Obtaining a trade license is not governed by any Shops and Commercial Establishments Act; rather, it falls under the jurisdiction of local administration, such as Corporations, Municipalities, and Gram Panchayats. I am not aware of any state in India that permits businesses to operate without a trade license!
janardan_raccha
Hi Madhu,

In this case, could you please highlight the section/clause under which bare act we have to refer to for applying a trade license in the state of Maharashtra? I would be glad if you could shed some light on this.

Janardan
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