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Last updated: December 17th, 2019 4:54 PM

Sikkim Trade License

Trade license is a legal certificate/ document that grants permission to start a specific trade or business in a particular municipal limit for which it is issued. The Government has declared it mandatory to have this certification to regulate various trade activities and to ensure that there are no unethical businesses at the city level. This document is issued by the respective municipalities or licensing authorities in the state of Sikkim. In this article, we look at the purpose, required documents and the application procedure to obtain a Sikkim trade license in detail.

Sikkim Shops & Commercial Establishment Act, 1983

The rules and regulations under this act apply to shops or a commercial establishment located within the municipal areas limits in the state of Sikkim. Every employer is required to apply for the registration within thirty days of commencement of business. This Act has been enacted to amend and consolidate the law regulating the conditions of service of employees working in every shop and commercial establishments. This is essential for every business that operates from an establishment or a shop. If any changes are made in the closure of an establishment, then these changes need to be reported to the concerned authority within 15 days.

Eligibility

This Act applies to all shops, and commercial establishments located in the state of Sikkim except those exempted by the state government. All business establishments that come under the following categories must obtain a trade license:

Food establishment license: Restaurants, hotels, canteen, food stalls, bakeries, the sale of vegetables and meat etc.
Industries license: An administrative service establishment in which persons employed or mainly engaged in power looms, factories, flour mills, cyber cafe, etc.
DOT License: Offensive and dangerous trades such as candle manufacturer, cracker manufacturer, barber shop, etc.
Shop license: Manufacturing, exchange and storage of any activity/commodity.

Requirement

The government has made it mandatory for one to obtain trade license to ensure that the person is not carrying out unethical business practices and follows relevant rules, safety measures and guidelines. A licensed business protects its owners against particular types of liability. If damage or injury occurs, personal finances would not be at stake in any settlement. The different kinds of trade licenses offer different levels of protection. In case if any individual operates or runs a business without a trade license, then the government can impose penalty and fine for such companies that may also lead in the closure of the business.

Documents Required

The following documents/records are to be furnished at the time of submitting the application form for obtaining Sikkim trade license.

Address Proof and ID Proof – Individual.
Affidavit
Certificate of Incorporation, MOA & AOA of the company.
Legal Occupancy certificate proof of the establishment/unit or allotment letter of the government agency.
Cancelled Cheque and Bank Statement.
NOC from Commerce & Industries Department
NOC from Sikkim Fire & Emergency Services
NOC from Pollution Control Board
COI / SSC / residential certificate
Documentary proof of establishment of trade.
Lease Deed of the constitution.

Documents required for the renewal of a license

Address Proof and Identity Proof
Original License copy
Application for renewal of a license
Old G-8 receipt

Documents required for the issuance of a duplicate trade license

First Information Report (FIR)
Indemnity Bond in a prescribed format.

Note: Scan all the required documents in PDF Format and not more than 2 MB in size

Concerned Authority

Trade licenses are issued by the respective municipalities or licensing department of the place where the business is located. These authorities issue licenses in consultation with other departments like Industries, Health, Engineering, Estate and others of the same type.

Non-Compliance

Operating a business without obtaining a valid trade license or a hawker license issued by the Urban Development and Housing Department will result in the closure of the business and imposition of fine as per the prescribed rules. The business entities shall be punished with fine which may extend to Rs. 5000/- to Rs. 20000/- depending upon the situation.

Processing Time

The Period for the granting new Trade license will take 15 days whereas, for renewal, it will take 12 days as per Right to Service Act, 2014.

Application Procedure – Offline Method

The applicants must follow the steps mentioned below to apply for the trade license by submitting the application form offline.

Approach the Municipal Cooperation

Step 1: Firstly, the applicant must visit the licensing department ranging from a particular municipal limit. Step 2: You will have to request with an executive for applying for a trade license. Note: You can download the application form of trade license from the official web portal of Guwahati Municipal Cooperation. Trade License application is reproduced below for your quick reference. [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2018/12/sp_GMC_FormI_en_US-1.pdf" title="_sp_GMC_FormI_en_US (1)"]

Fill in the right credentials

Step 3: You need to fill the application with appropriate information without any errors. Provide the given following details in the application form.

Type of license
New trade license details
Applicant’s address details
Alternate owner details

Step 4: You have to submit the trade application form in the prescribed format to the concerned official along with all the supporting documents.

Attach Required Documents

Step 5: After applying, you have to attach the requested documents along with the application form. Then, you have to make the prescribed fees for the registration. Step 6: Upon submission of the form, you will receive the transaction number on your registered mobile number regarding the details about the successful registration. The application has to make a note of the transaction ID to check the status of the application online.

Renewal Application Form

Step 7: You can also apply for the Renewal of trade license by submitting the renewal form to the concerned authority. The renewal form is given below in the PDF format for your reference. [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2018/12/renewal-form.pdf" title="renewal form"]

Application Procedure of Trade License – Online Method

The applicants must follow the specified steps to apply for the trade license by submitting the application form online.

Visit the GMC Portal

Step 1: Applicants will have to visit the official Gangtok Municipal Corporation (GMC) to apply for obtaining trade license through the portal. Step 2: After which, you must click on the ‘Trade License’ options tab that is visible on the home page.

New User Registration page

Step 3: After that, the user login page will be displayed on the screen. In case if you’re a new user, you must have to register yourself with the portal by clicking on the ‘new user registration’ option to avail the services. [caption id="attachment_68295" align="aligncenter" width="785"]

Step 3 - Sikkim Trade License Step 4: Upon clicking on the registration button, the citizen’s registration page will be displayed as shown below: Step 5: Then you have to fill out all the mandatory details such as the applicant’s name, address, mobile number and e-mail address. Then you must create your password and enter the captcha text image as shown. After that, click on the “Submit” button.

Login to Portal

Step 6: Once you got registered with the portal, log in to the portal using your user id and user password and then enter the captcha given. [caption id="attachment_68296" align="aligncenter" width="723"]

step 6 - Sikkim Trade License

Apply for New Trade License

Step 7: after the login, you have to click on the “Apply for New Trade License” that is visible on your dashboard. [caption id="attachment_68298" align="aligncenter" width="775"]

Step 7 - Sikkim Trade License Step 8: Now the instructions page will be displayed, you need to click on the “Accept & Proceed to Online Application” button.

Fill in the right credentials

Step 9: Then, you have to complete all the required details such as new trade license information, Applicant’s address details, other owner details, Type of trade license, Business details, NOC from a fire department of the state, Fee details, Property Tax details, etc. [caption id="attachment_68301" align="aligncenter" width="1079"]

step 9 - Sikkim Trade License

Upload Photograph and Signature

Step 10: Now you must upload your scanned photograph and signature in the .jpeg format. Note: Uploaded Photograph & Signature specimen must be identifiable/visible (must not exceed 20 KB in size). [caption id="attachment_68302" align="aligncenter" width="840"]

step 10 - Sikkim Trade License

Mandatory Documents to be Uploaded

Step 11: Fill in the details further in the application form and upload the requisite/necessary documents that are specified above.

Choose Licenses

Step 12: Now you have to select the type of license, and click on the ‘close’ button.

Fees Calculation

Step 13: Upon the type of license that you have chosen, the license fee, garbage fee and the total will be auto-populated based on the license that you have selected. [caption id="attachment_68303" align="aligncenter" width="870"]

Step 13 - Sikkim Trade License Step 14: Then click on the ‘Save’ button.

Verification of Documents

Step 15: Once the application is submitted, verification of the documents will be done by the concerned officials. The verified application will be forwarded for the approval to the relevant department.

Generate Acknowledgement Number

Step 16: After submitting the application form successfully, an automatic unique application number will be generated.

Make Payment

Step 17: Once the application is scrutinised, the fee for the license will automatically be calculated and displayed on the screen. Step 18: Then you have to click on the “Do Payment” option and click on the “Proceed” button on accepting the terms and conditions listed. Step 19: Now you will be directed to the payment gateway where you need to fill all the following information to make the payment.

Payment mode
UBL name
Collection date
Collection centre
Bank details

Step 20: Then, click on the “Make Payment” button to make the payment online. A receipt/ slip will be generated as an acknowledgement message for the transaction. Once the payment is made, the concerned authority will verify the application form of trade license. After the verifier does the verification, the applicant will be notified via registered mobile number.

Rejection of Application

If an application is returned from GMC for correction, a "Returned" button will be available under the "Status" column. Click it to make the necessary corrections and re-submit the same Application to GMC for Approval. If an Application is rejected, the refund for the amount paid by the Applicant will be initiated within Two Weeks from the Date of Rejection.

Validity of Trade License

Trade License document would be valid for three years from the date of issuance. Therefore, it has to be renewed after three years by payment of license fee for such period.

Renewal of Trade License

Applicants have to select the "Renew License" tab from the official portal of his dashboard and can apply for the trade license Renewal. Once the payment for the renewal has been made, your application process for trade license will be completed.

Check/ Track Status of Application

The applicant can also track their status of application anytime via the official portal of Sikkim in two steps. Click on the ‘Track Application’ tab of Know your application status. Then provide your Application number on the search column and click on the next button. The status of your application form will be displayed on the screen. [caption id="attachment_68304" align="aligncenter" width="1076"]

Track Trade License Application Status

Download Trade License

If the application form has been approved, you will get a notification on the registered mobile number. The details of the trade license will be updated in the concerned state’s records portal. Now, you need to login to the official portal and enter the Certificate number along with the application number. Then, click on the “Submit” icon. Finally, you can download the trade license certificate.