Shop & Establishment Registration/ Trade Licence

Each state has its own local laws for Trade licences. 

Municipal Corporation of Delhi (MCD) issues general Trade/Storage License to the traders/ establishments for permitted trade activities under Section 2 (59) of the DMC Act, 1957. It is mandatory for all traders/ establishments to obtain trade/ storage license under Section 417 of the DMC Act, 1957 in the jurisdiction of MCD.

Necessity of Municipal License under DMC Act 1957

  1. Factory, etc., not to be established without permission of the Commissioner.

(1) No person shall, without the previous permission in writing of the Commissioner, establish in any premises, or materially alter, enlarge or extend, any factory, workshop or trade premises in which it is intended to employ steam, electricity, water or other mechanical power.

(2) The Commissioner may refuse to give such permission, if he is of the opinion that the establishment, alteration, enlargement or extension of such factory, workshop or trade premises, in the proposed position would be objectionable by reason of the density of the population in the neighbourhood thereof, or would be a nuisance to the inhabitants of the neighbourhood.

  1. Premises not to be used for certain purposes without licence.

(1) No person shall use or permit to be used any premises for any of the following purposes without or otherwise than in conformity with the terms of a licence granted by the Commissioner in this behalf, namely:

(a) any of the purposes specified in Part I of the Eleventh Schedule;

(b) any purpose which is, in the opinion of the Commissioner dangerous to life, health or property or likely to create a nuisance;

(c) keeping horses, cattle or other quardruped animals or birds for transportation, sale or hire or for sale of the produce thereof; or

(d) storing any of the articles specified in Part II of the Eleventh Schedule except for domestic use of any those article’s:

Provided that the Corporation may declare that premises in which the aggregate quantity of articles stored for sale does not exceed such quantity as may be prescribed by bye-laws in respect of any such articles shall be exempted from the operation of clause (d).

(2) In prescribing the terms of a licence granted under this section for the use of premises as mills or iron yards or for similar purposes the Commissioner may, when he thinks fit, require the licensee to provide a space or passage within the premises for carts for loading and unloading purposes

(3) The Corporation shall fix a scale of fees to be paid in respect of premises licensed under sub-section (1):

Provided that no such fee shall exceed five hundred rupees.

  1. Licences for hawking articles, etc.

No person shall, without or otherwise than in conformity with the terms of a licence granted by the Commissioner in this behalf,

(a) hawk or expose for sale in any place any article whatsoever whether it be for human consumption or not;

(b) use in any place his skill in any handicraft or for rendering services to and for the convenience of the public for the purposes of gain or making a living.

  1. Eating houses, etc. not to be used without licence from the Commissioner.

(1) No person shall, without or otherwise than in conformity with the terms of a licence granted by the Commissioner in this behalf, keep any eating house, lodging house, hotel, boarding house, tea shop, coffee house, cafe, restaurant, refreshment room or any place where the public are admitted for repose or for the consumption of any food or drink or any place where food is sold or prepared for sale.

(2) The Commissioner may at any time cancel or suspend any licence granted under sub-section (1) if he is of the opinion that the premises covered thereby are not kept in conformity with the conditions of such licence or with the provisions of any bye-law made in this behalf whether the licensee is prosecuted under this Act or not.

  1. Licensing and control of theatres, circuses and places of public amusement.

No person shall, without or otherwise than in confirmity with the terms of a licence granted by the Commissioner in this behalf, keep open any theatre, circus, cinema house, dancing hall or other similar place of public resort, recreation or amusement:

Provided that nothing in this section shall apply to private performances in any such place.