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Do I require a separate shop establishment and trade license for each state where doing transaction?

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mack

Thinking-to-start-business

148 Points Posted on 10 January 2023

I am a proprietor doing export business from Rajasthan state and also having a trade license and shop establishment license from Rajasthan. I don't have any other office, other than the 'Rajasthan location'. Now suppose I buy and sell goods or services to other states then do I require a trade license and shop establishment license for each of these states?

Even if I am selling from other states then for outward sales I will be showing Rajasthan's name on the Invoice.

Replies (5)

Quick Summary

This discussion explores whether a proprietor operating an export business solely from Rajasthan needs separate trade and shop establishment licenses for other states they conduct transactions in. The consensus suggests that if no physical office is established in other states, the Rajasthan licenses may suffice. However, opening an office in a new state would necessitate obtaining local licenses. For a sole proprietor exporting goods from home without employees, the necessity of these licenses is questioned, with advice to apply if requested by authorities.

FARAZ UDDIN

25 Points Posted on 10 January 2023

Trade and shop establishment license for Rajasthan state is enough in your case,
if you open an office in other state,then you have to obtain the respective licences from those states;

Neha

ENTREPRENEUR

537 Points Posted on 10 January 2023

If you are a proprietor doing export business from Rajasthan state and selling goods or services to other states, you may not necessarily require a trade license and shop establishment license for each of these states.

mack

Thinking-to-start-business

148 Points Posted on 10 January 2023

I am thinking to start a proprietor for export business and will be running by my own. I will be simply selling handicraft items to other countries. Do I am bounded to get a 'Trade Licence' & 'Shop establishment license' ?

because the purpose of a trade license is to protect nearby staying people from any uneven effect of doing business, but in my situation, I will be keeping the stock/handicraft items at my home to export so I don't think a trade license is required at the first place.

The purpose of a shop establishment license is to protect the rights of the employees or workers & working conditions, so logically if I am not at all hiring any worker or employee then I can't avoid taking a shop establishment license.