• Legal requirement of Branch Office

We have a proprietorship company (Software Development company), we started it in Murshidabad and we got a Trade License in that address from the local Gram Panchayet. We already have TAN, PAN, PTAX and IEC registration for our office in Murshidabad.

Now we want to open a branch office in Kolkata (preferably in Salt Lake area). I need to know What are the legal requirements for setting up a branch office? And when you mention the requirements please give more importance to the following points :

Do we need to again take a trade license from local municipality in Kolkata / Salt Lake? Or our existing trade license for our Murshidabad office will be sufficient?

If we open up the branch office in a residential property (say it will be below 10% area of the total property), do we have to apply for commercial electric meter or commercial water connection etc. ?
Asked 1 year ago in Business Law from Kolkata, West Bengal
1. Trade license is issued by Municipality. so, you shall have to apply for the trade license of the branch office from kolkata Corporation/salt Lake municipality  duly mentioning therein that you are the branch office of the firm  formed at Murshidabad,

2. Yu need to have permission to open an office in residential area of salt lake,

3. If you use a property for commercial use, you shall have to pay for the electricity and water connection at commercial rate.
Krishna Kishore Ganguly
Advocate, Kolkata
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1. Yes, you need a fresh trade license from Bidhanagar Municipality.
2. It will be commercial meter and commercial water connection.
Devajyoti Barman
Advocate, Kolkata
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54 Consultations
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1) you need trade licence from Kolkata municipal corporation 

2) in residential area if you open branch office you would need commercial electric meter and water connection 
Ajay Sethi
Advocate, Mumbai
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1224 Consultations
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A. One such important legislation is the Shops and Establishments Act, enacted by every state in India to regulate conditions of work and to provide for statutory obligations of the employers and rights of the employees in un-organized sector of employment and other establishments in their jurisdiction.The rules under this act vary as per the states. We recommend you to consult the S&E Act with the Administrative Office/Municipal Corporation in your city.

B. Yes, You need to take license from the local municipality under the Shop and Establishment act, for more information, contact local municipality.

C. You are not permitted to start your commercial business in residential business and only doctor, lawyer allowed to use their 20% premises in residential portion for the commercial purpose. Therefore, you cannot open business in residential property.
B.T. Ravi
Advocate, Bangalore
736 Answers
31 Consultations
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1.The worst case scenario in the instant case is that the Municipal authority will direct you to close down your operation as soon as they received complaint about your conducting commercial activities from a residential area,

2. If you refuse to close down, police help will be sought to close your operation,

3. The law is that you can not conduct business without trade license. If you still conduct your said operation, you will be forced to close it,

4. However, the reality is, you grease appropriate palms and then continue your operation,

5. I stay at Salt Lake and witness such activities regularly.
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
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obtaining of a licence u/s. 435 read with Schedule V, Part I, Item 22(i) of Calcutta Municipal Corporation Act, 1980 is condition precedent for carrying on trade or business and that municipal licence u/s. 435 of the Act can only be granted in the premises not meant for residential purpose and non-obtaining of such a licence and using the residential premises for the purpose contrary to the provisions of the statute mentioned hereinbefore is punishable under Schedule VI of the A

2)in the event you fail to obtain licence municipal coprporation can take action under provisions of Muncipal corporation act and penalty can be imposed upon you 
Ajay Sethi
Advocate, Mumbai
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1224 Consultations
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The Municipality can impose huge penalty.
If the residents oppose you may be directed to vacate the area.
And most importantly if any mishap happens even without your negligence you would be held liable.
So it is not wise to run a business without at least trade license.
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
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If the Corporation authorities decide to initiate appropriate legal action against the business establishment running without proper licence, it may put a seal on the establishment or give a notice to stop and vacate the premises, if the orders of the authority are not obeyed then the authority may even seek the police help to close down the business establishment forcibly and also initiate proper legal action for such an act against you. Others running the business like this cannot be claimed as excuse in law nor you can seek rights that way.  
T Kalaiselvan
Advocate, Vellore
14154 Answers
127 Consultations
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