Trade license for a boutique
Hi, I had started a small tailoring shop and named it as boutique, is it compulsory to have a trade license for my shop? Some people are comming to my doorstep and asking to pay money without any form filling. Are these person right or frauds, please give me suggestions.
As per the municipal laws, all shops and establishments are covered under the Shops and Establishment Act and tailoring shop is no exception. In Delhi, you will need to take the license under the Delhi Shop and Establishment Act 1954.
Apart from the license, you need the following registrations to start a tailor shop / bioutique (which will cater to brands, sale, purchase of goods and tailoring).
Service Tax registration Number
VAT / New GST registration number
If you start out yourself as a sole proprietor without any other employed staff, you do not need the above if you are only providing small time stitching services to local people.
However, if you sell branded clothes from your boutique, you need a service tax registration number, TAN Number, PAN number of the shop / sole proprietor etc apart from a license under the shop and establishment act 1954. It is compulsory to have a trade license to even run a tailoring shop. The name of the shop is not important but what is important is the nature of the activity carried out at the shop. You need the trade license as your shop would be treated as a "commercial establishment" defined in 2(5) of the Delhi Shops Act 1954. The department of labour of Delhi has made it easy to obtain registration of shops – online. Visit http://www.labour.delhigovt.nic.in/ser/index.html.
if some people of the locality are extorting money from you, they would be frauds and the best way to counter them would be to file a Police Complaint with the local police station. Have a surveillance camera to take proof of demand made from you.
If some of the people are from Municipal Corporation, then lay a trap from them by informing the vigilance cell of the municipal corporation and then they can be prosecuted under the Prevention of Corruption Act 1988.
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