The Retail industry has come to the fore as one of the most enterprising and fast-paced industries due to the entry of several new entries. What came to the forefront is that for over 10% of the country’s gross domestic product (GDP) and around 8% of the employment. India ranks in the world’s fifth-largest global destination in the retail space.

Retail means where the retailer or the shop owner will sell the goods to the consumer physically. It can be of many types such as specialty stores, department stores, supermarkets, convenience stores, drug stores, discount stores, etc. As the Retail sector amounts to 10% of India's GDP, it is necessary to come under the compliances which include registration, obtaining of licenses, etc.

Types of Goods sold in retail shops

 Some of the different types of goods sold in a retail shop are categorized as follows: 

1. Convenience Goods: These are goods that are readily available for consumption.
2. Shopping Goods: These include goods that require research, comparison and planning, for example, furniture.
3. Speciality Goods: Goods reserved for posh people who have the financial means to purchase such a product costing a whopping amount of money like jewelry, property etc.
4. Unsought Goods:  Goods which are readily available but not purchased regularly.
5. Impulse Goods: Goods which are readily available but purchased on impulsive behaviour.

 Mandatory License & Registration Required

1. Shop & Establishment Registration: The Shop and Establishment is a license or a basic proof of your establishment or shop.
2. FSSAI Food License: FSSAI License or Food License is a registration that permits you to sell food products.
3. Drugs and Cosmetic License: The licensing authority for the sale of drugs and cosmetics is the Drugs and Cosmetics Act, 1940. The act sets several regulatory standards for the manufacturing and selling of those drugs and cosmetics.
4. Goods and Service Tax(GST): Every business is required to pay tax and register itself under GST, as it deals with the sale of goods. Every grocery store owner, on registration, will get a GSTIN, a 15 digit code which is a unique GST identification number.

How can we help you?

Looking at the rapid increase in the growth of the retail industry in India, it is advisable to follow the necessary compliances.

Online Legal India™ has made it easy for every business entities to register the aforementioned licenses. This platform is managed, operated and driven by CA, CS, IT professionals, Lawyers and Influencers, who have vast experiences within their respective fields.