Difference Between Shop Act and Trade License

Difference Between Shop Act and Trade License

Introduction

Starting a business in India often means dealing with essential licenses and registrations. Two common yet often misunderstood terms are Shop Act License and Trade License. While they serve different purposes, many small business owners confuse one with the other. This blog will break down the difference and help you determine which one you need.

What is a Shop Act License?

Also known as the Gumasta License in states like Maharashtra, the Shop and Establishment Act license is a state-specific registration required for:

• Shops

• Offices

• Commercial establishments

• Service centers

It regulates working conditions, wages, and employee rights. Even freelancers and home-based businesses in some states may require this.

📌 Apply for Shop Act Registration with our assistance

What is a Trade License?

A Trade License is issued by the local municipal corporation. It allows you to carry out a specific type of business activity in a designated area. It focuses more on public health and safety than employment rules.

Trade License is typically required for:

• Restaurants

• Salons

• Manufacturing units

• Pet shops, etc.

Key Differences Between Shop Act and Trade License:

FeatureShop Act LicenseTrade LicenseIssuing AuthorityState Labour DepartmentMunicipal CorporationPurposeEmployee rights & working hoursHealth, safety, zoning complianceRequired ForOffices, shops, service providersFood outlets, factories, salonsMandatory in All States?Yes (in some form)Depends on municipal rules

Do You Need Both?

In some cases, yes. A business may need both licenses depending on the nature of the activity and local regulations. For example, a bakery with dine-in service would need:

• Shop Act License (for employment regulation)

• Trade License (for food trade and public safety)

How Online Dakhla Helps

• We assess which licenses your business needs

• We handle state and municipal applications

• End-to-end documentation support

• Renewal and compliance alerts

📌 Explore more about Shop Act and Trade Licenses

Final Words

Understanding licensing is crucial for running a legal and hassle-free business. Whether you’re opening a shop or launching a food outlet, Online Dakhla ensures you get the right license, the right way.

📞 Contact: 8888818767
📧 Email: support@onlinedakhla.com
🌐 Website: www.onlinedakhla.com

👉 Get Your Shop Act or Trade License Now

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