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CS Executive · Setting Up of Business, Industrial and Labour Laws · Identifying Laws applicable to various Industries and their Initial Compliances

Vikram plans a new restaurant in Bengaluru employing 12 staff. Which licence or registration is a local or state-level requirement specific to carrying on his establishment, apart from central registrations such as GST?

Vikram's restaurant needs registration under the applicable state Shops and Establishments law along with a local municipal trade licence. These are state or local requirements, unlike SEBI licensing, CCI permission or a company commencement certificate, which have no relevance to a small proprietary restaurant.

  1. ARegistration under the applicable state Shops and Establishments law and a local trade licenceCorrect
  2. BCertificate of commencement of business from the Registrar of Companies
  3. CLicence from SEBI as a market intermediary
  4. DPermission from the Competition Commission of India

Explanation

Commercial establishments such as restaurants must register under the state Shops and Establishments law and usually hold a municipal trade licence. A commencement certificate applies to certain companies, not to a proprietor. SEBI licensing concerns securities intermediaries, and CCI permission concerns combinations, so neither applies here.

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