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SK Sharma (Attorney at Law)     31 May 2023

Trade license

1.Are trade licenses mandatory in Tamil Nadu ?

If yes then my query would be

it is divided into 3 segments 
1. MSME ( Industries/Manifacturing)
2. D&F ( Dangerous and Offensive Trade) Sales / Manufacturing
3. Food related.

My question no 2:

a small retail shop like mom/Pop or a furniture shop Retail only ? Are they mandated to have the licenses ?


 2 Replies

anjali tamrkar   12 January 2024

Running a business in Chennai, or any other Indian city, requires having a trade license. The neighbourhood municipal corporation formally authorises a trade license to a business owner to engage in particular commercial or trade operations within a predetermined territory. The license guarantees that companies abide by the laws and norms established by the government to protect the people’s general welfare, health, and safety.
trade licence is a type of document that authorises and permits you to engage in commercial business related activities. It doesn't grant land ownership or authority to engage in any action other than business activities. The municipality provides this licence in collaboration with other offices such as healthcare, building, estate, and the state government.
the government had issued restrictions for conducting specific types of enterprises. After some time, the government consulted businesses and started issuing trade licences. Today, businesses use this type of licence to carry out a specified business and trade related activity. The authorities will only give these permits to individuals in order to allow them to engage in specific business activities within a specific geographical area. For a certain state to allow enterprises to conduct their operations throughout the state, the state government has to issue a licence. 
In state Tamil Nadu ,the trade licence is category in three 
-sales and manufacturing
-food licence 
As per the query 
Penalties for not get the trade licence.
 It is mandatory to get the trade licence and if the candidate does not obtain the licence, the following repercussions will occur:
•    Once a candidate has a business permit, they must follow compliance with all the rules and regulations.
•    If the candidate fails to get the trade licence, the appropriate authorities may apply a variety of penalties.
•    If you form a company and start operations without the necessary permits, a penalty or charge will be collected.
•    If the business owner continues to fail to comply, they have to face the consequences.

SK Sharma (Attorney at Law)     13 January 2024

Hi Anjali , thank you for your reply.

Could you please state under which Law or Act it is becoming mandatory to avail for Trade Licence. To what my knowledge quoting a specfic act as i belong to the district of Coimbatore it is issued under the Sections of Coimbatore City Muncipal Corporation Act 1981 ( Act 25 of 1991) as how we say D&O thats Dangerous and Offensive License under sections

Food Establishments ;

349 - Prohibition in respct of eating houses

352- License for Places in which animals are kept

Landing Places , Cart Stands Etc

358-License for Private Cart Stand

Industires and Factories ( majorly with Manufacturing)

360- Purpose for which places withing the limits of the city may not be used without a licence

361-Application for Construction , Establishment or insallation of factory , workshop or work place in which steam or other power is to be employed

Slaugter Houses
372- Licence for Slaughter Houses

391- Butchers , Fish mongers and Poluterers License

and to go with s-361 that talks about Factories or work shops which employes power and to counter read with with s-360 and  Schedule 4 of the act talks about manufacturing not Trading.


Here i wanted to get a clear picture if some one owns a Small provision store or a Retail shop who trades in Hard ware and Furniture or someone who does trading activities are no where manufactures then how it is mandated to have trade license ! Yes , Agree to other categories it applies but just mere beacuse it applies to relevant category it should apply for irrelevant category like trading also ?


SK Sharma

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