Dear members,
We are a Mumbai-based company with about 130 employees and branches in three cities: Kolkata, Bangalore, and Delhi. Until recently, we had office premises for these branches. However, due to the demerger of certain business lines, each branch now has only one employee, except for Kolkata, which has two. Currently, everyone is working from home (WFH), and we have surrendered the rented office premises. We do not plan to hire office space for these branches.
My question is, what should we do regarding the Shops and Establishment License, Trade License, and Professional Tax registration since we do not have a physical office?
Before transitioning to WFH, our offices were operational in the mentioned cities, and the registrations/payments were in line with that setup.
I kindly request your guidance on this matter.
Warm Regards
From India, Mumbai
We are a Mumbai-based company with about 130 employees and branches in three cities: Kolkata, Bangalore, and Delhi. Until recently, we had office premises for these branches. However, due to the demerger of certain business lines, each branch now has only one employee, except for Kolkata, which has two. Currently, everyone is working from home (WFH), and we have surrendered the rented office premises. We do not plan to hire office space for these branches.
My question is, what should we do regarding the Shops and Establishment License, Trade License, and Professional Tax registration since we do not have a physical office?
Before transitioning to WFH, our offices were operational in the mentioned cities, and the registrations/payments were in line with that setup.
I kindly request your guidance on this matter.
Warm Regards
From India, Mumbai
Dear Colleague,
Based on the given information, the following aspects may need validation after consulting a few more experts:
1. You have to maintain your Registered Office location for the specified licenses as per the requirements of the Companies Act and other regulations.
2. In the case of other locations/branches where you have permanently surrendered the premises, and all employees are working from home with no plans of reopening in the near future, you must notify the authorities regarding the "Closing down of the Establishment." This should be done using the appropriate format and/or by drafting a suitable letter in accordance with the rules of the Shops and Establishment Act and Professional Tax Act in your respective States.
Who issues the Trade License and who is the relevant authority that should be approached for it? In my opinion, since the trade activities are ongoing, the license should be obtained for your Registered Office Address. Please verify this to ensure compliance as the trade operations are still active.
Thank you.
From India, Chennai
Based on the given information, the following aspects may need validation after consulting a few more experts:
1. You have to maintain your Registered Office location for the specified licenses as per the requirements of the Companies Act and other regulations.
2. In the case of other locations/branches where you have permanently surrendered the premises, and all employees are working from home with no plans of reopening in the near future, you must notify the authorities regarding the "Closing down of the Establishment." This should be done using the appropriate format and/or by drafting a suitable letter in accordance with the rules of the Shops and Establishment Act and Professional Tax Act in your respective States.
Who issues the Trade License and who is the relevant authority that should be approached for it? In my opinion, since the trade activities are ongoing, the license should be obtained for your Registered Office Address. Please verify this to ensure compliance as the trade operations are still active.
Thank you.
From India, Chennai
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