How to acquire Licence and Registration for a Business?

When a citizen of Mumbai wishes to initiate a company or business for profit, it is mandatory for him or her to first apply for a registration in the Shops and Establishments department of the Ward office closest to the place of the proposed business.

Who approves Registration?

  • Registration is approved by the Shops and Establishment Department of the concerned Ward of the MCGM.

How to get Registered?

  • Visit the Citizen Facilitation Center (CFC) of the concerned ward.
  • Fill and submit the Shop and Establishment Registration – Form A, (Which can also be filled online by visiting the Citizen portal on www.mcgm.gov.in) and must be submitted with an undertaking.

 

The following are the different Forms required for; an application for registration, renewal and notification of change to the Shops and Establishments department:

1) Application for Registration – Form A

• Documents required for Form A

o For Proprietary firm

 Undertaking

o For Partnership firm

 Undertaking

 Deed of partnership

o For Public/Private Ltd. Company

 Undertaking

 Memorandum of Article and Memorandum of Association

  List of Directors with Residential Address

• To download Form A click here.

• To download a Performa of the Undertaking click here.

 

2) Application for Renewal – Form B

• To download Form B click here.

 

3) Application for Notification of Change – Form E

• To download Form E click here.

• To download the checklist for Form E click here.

• Annual Trade Refuse Charge – Rs. 120

 

What is the procedure after a particular Form is submitted?

  • As a further process the application is assigned to and processed by Department Head (Sr. Inspector) of SNE at the concerned Ward.
  • After site inspection the application is approved.
  • The Registration Certificate is then issued to the applicant.

 

How long does the Registration process take?

  • The Registration process takes up to 15 working days

 

What is the registration fee?

  • The registration fee depends on the number of employees in your company

Sr. No.

Category of Establishment

Annual Fee

Annual Trade Refuse Charge

1 Shops & Establishment having no employees. Rs. 120 Rs. 360
2 Establishment having 1 to 5 employees Rs. 360 Rs. 1080
3 Establishment having 6 to 10 employees Rs. 720 Rs. 2160
4 Establishment having 11 to 20 employees Rs. 1200 Rs. 3600
5 Establishment having 21 to 50 employees Rs. 2400 Rs. 7200
6 Establishment having 51 to 100 employees Rs. 4200 Rs. 12600
7 Establishment having more than 100 employees Rs. 5400 Rs. 16200
  • The Applicant must also pay an added process fee of Rs. 200

 

The following are five types of establishment that need registration:

1)      Shop

2)      Commercial

3)      Residential Hotel

4)      Eating House

5)      Theatre / Public Amusement

 

The following is a list of Registers, Records & Notices to be maintained by the employer/ Manager of various establishments:

(A) Under the Bombay Shops & Establishments Act, 1948

1) In respect of Shops and Commercial Establishments the Employer / Manager should maintain Register of Employment in Form ‘H’ (Provided that where the opening and closing hours and period of interval for rest, are ordinarily uniform such Register should be maintained in Form ‘J’)

2) In respect of Residential Hotel, Restaurant, Eating House, Theatre or other place of public amusement and entertainment employer / Manager should maintain Register of Employment in Form ‘I’ (Provided that where the opening and closing hours and period of interval for rest, are ordinarily uniform such Register should be maintained in form ‘K’).

3) Register of Leave in Form ‘M’

4) ‘Leave Book’ in Form ‘N’ for each employee

5) Register of lime washing etc. in Form ‘F’

6) Visit Book – 7” x 6” 100 pages

7) Weekly closed day notice ‘L’ Form notice of holidays (In case of Residential Hotel, Restaurant, Eating House, Theatre and in case of shops or commercial establishment having special exemption in respect of Weekly offs and closing hours)

8) Identity card of each employee working in the Residential Hotel, Restaurant, Eating House and Theatre

9) Under the Payment of Wages Act 1936 – The Register of Payment of Wages in Form III

OR

(B) Under the Minimum Wages Act, 1948

1) Muster Roll Cum Wages Register Form II …… Under Rule 27(1) of the Maharashtra Minimum Wages Rule, 1963

2) Attendance Card cum Wages Slip…. Under Rule 27(2) of the Maharashtra Minimum Wages Rule, 1963

3) Inspector Visit Book Under Rule 28 of the Maharashtra Minimum Wages Rule, 1963

4) Register of lime washing etc. in Form ‘F’ [as stated in Above (A) 5]

5) Weekly closed day notice ‘L’ Form notice of holidays [as stated in Above (A) 7]

6) Identity card of each employee [as stated in Above (A) 8]

 

Once you register your establishment you must apply for licences that will allow your business to run smoothly.

 

Who issues a Licence?

  • A Licence is issued  by the Licence Department of the concerned Ward of the MCGM

How to obtain a Licence?

  • Visit the Citizen Facilitation Center (CFC) of the Ward Office closest to your place of business
  • Submit the duly completed and signed application form, along with required documents and fees at the CFC.

What is the procedure after the Form is submitted?

  • As a further process the application is assigned to and processed by the Department Head (Sr. Inspector License) of the License Department at the concerned Ward.
  • After site inspection and approval of the application, the scheduled fees are collected & the License is issued to the applicant.

 

The following list is an overview of all the licenses required to start a business:

Trade License – u/s 394 of the Mumbai Municipal Corporation Act 1888:

o To know how to get a Trade Licence click here.

 

Hoarding Permit – u/s 328 of the Mumbai Municipal Corporation Act 1888:

o To know how to get a Hoarding Licence click here.

 

Advertisement Permit – u/s 328 of the Mumbai Municipal Corporation Act 1888:

o To know how to get an Advertisement Permit click here.

 

Movable Advertisement Permit – u/s 328 of the Mumbai Municipal Corporation Act 1888:

o To know how to get a Movable Advertisement Permit click here.

 

Projection and Stall Boards License – u/s 313(1)(b)(c) of the Mumbai Municipal Corporation Act 1888:

o To know how to get a Projection and Stall Boards Licence click here.

 

Health License – u/s 394 / 412 of the Mumbai Municipal Corporation Act 1888:

o To know how to get a Health Licence click here.

 

Maharashtra Prevention of Food Adulteration License:

o To know how to get a Maharashtra Prevention of Food Adulteration license click here.

 

The following are the preliminary licences required and taxes payable by each establishment:

1) Shop

a. Trade License – u/s 394 of the Mumbai Municipal Corporation Act 1888 (Possession of hazardous and inflammatory products)

b. Projection and Stall Board License – u/s 313(1)(b)(c) of the Mumbai Municipal Corporation Act 1888

c. Hoarding Permit – u/s 328 of the Mumbai Municipal Corporation Act 1888

 

2) Commercial

a. Trade License – u/s 394 of the Mumbai Municipal Corporation Act 1888 (Possession of hazardous and inflammatory products)

b. Projection and Stall Board License – u/s 313(1)(b)(c) of the Mumbai Municipal Corporation Act 1888

c. Hoarding Permit – u/s 328 of the Mumbai Municipal Corporation Act 1888 (In case of Glow / Neon Signboards)

 

3) Residential Hotel

a. NOC from the License Department

b. Health License

c. Professional Tax

d. Value added Tax

e. Sales Tax

 

4) Eating House

a. Health License

b. Professional Tax

c. Value added Tax

d. Sales Tax

 

5) Theatre/Public Amusement

a. Amusement Tax

b. Health License

c. In case of Eating house:

i. Professional Tax

ii. Value added Tax

iii. Sales Tax

 

Once the citizen has got his / her establishment registered and has obtained all required licences, the first step of running a business is successfully complete.

 

Source: This information was obtained from the MCGM