Essential Licenses and Permits for Retail Businesses in India: A Comprehensive Guide

Introduction

Due to a lack of knowledge, awareness, and care for conducting business legally, entrepreneurs of retail firms frequently ignore the legal and regulatory environment. 

Therefore, this blog provides comprehensive information on the main licenses and permits your retail business needs from the government. 

These include a Trade License, PAN, Tax Deduction Number (TAN), Shops Act Registration, and Professional Tax Registration, if relevant. 

Number for Permanent Account (PAN)

The Income Tax Department of India issues PANs, or permanent account numbers, which are 10-digit alphanumeric codes, to all tax-paying entities, both individuals and non-individuals.

Enterprises require PAN cards not just for identification verification purposes but also for bank account creation, tax registration, and the filing of income tax and GST returns.

Number for Taxpayer Account (TAN)

Like PAN, TAN is a distinct 10-digit alphanumeric code that the Income Tax Division provides. 

If your company participates in a tax deduction at source for its workers, contractors, or any other organization that provides services, it must apply for a TAN. 

According to Section 203A of the Income Tax Act, 1961, when depositing taxes in a specified bank, all TDS forms and Challans must include the Tax Deduction Account Number (TAN) provided by the Income Tax Department (ITD). 

Trade License

Trade licenses are granted to newly created firms that reside and operate within the jurisdiction of local corporations or state governments. 

These licenses let companies operate in a specific place specified in the license application, conducting a particular business activity. 

Trade licenses do not grant any ownership rights for the real estate on which the company is located.

The Occupancy Certificate

A Certificate of Occupancy (CoO) is a crucial document needed in several real estate situations, including building, purchasing, altering, or changing the use of the property. 

The CoO, which is issued by the local zoning authority, certifies that the property has been thoroughly inspected to ensure it complies with all legal building laws and safety requirements. 

Shops and Establishment Registration

All Indian enterprises that hire contract, part-time, and full-time employees must register under the Shops and Establishments Act. 

The Act’s provisions mainly guarantee improved working conditions for workers regarding minimum salary, number of holidays, maternity and sick leave, number of working hours, and hygienic workplace, among other things. 

Businesses that register under the Act are undoubtedly concerned with the well-being of their workers.

Registration for Professional Taxes

Professionals, including workers, employers, and companies, are subject to professional tax. It is a state tax that is imposed in various ways by Indian states. 

A business must get a professional tax registration within 30 days of the commencement of operations if the state in which it is located has rules requiring registration under the Act. 

Employers, including companies, typically take the tax at source directly from their workers and submit it to the government on their behalf.

Our assistance makes obtaining a wide range of documents, from industry-specific permits to fundamental PAN certificates, remarkably simple, even though the list is lengthy. 

We offer a free consultation before providing comprehensive filing and documentation support at a reasonable cost.  Our goal is to simplify legal compliance for your retail establishments. Consult our licensing specialists right now! 

If you’re navigating this or any other legal intricacies, Lawgical Adda is here to help! Our expert team is ready to guide you through every step of business registration and compliance, whether you’re launching a new venture or managing an established one. 

Don’t let legal hurdles slow you down reach out to Lawgical Adda today and get the answers you need with ease and confidence!