Trade Business Compliance Checklist

Verify that your trading enterprise is fully compliant across entity registration, tax filings, labour law, FSSAI (if food), BIS and trade-specific licences.

Business Registration & Licences

Business entity registered — company, LLP, partnership or proprietorship with PANcritical

Shops & Establishment Act registration obtained from local municipalitycritical

GST registration active; GSTIN displayed on premises and invoicescritical

Trade licence from local body / municipality renewed annuallycritical

Import Export Code (IEC) from DGFT if doing cross-border trade

Tax & Financial Compliance

GST returns (GSTR-1 and GSTR-3B) filed monthly or quarterlycritical

Income Tax Return (ITR) filed annually; advance tax paid quarterlycritical

TDS deducted and deposited on rent, commission, professional feescritical

Books of accounts maintained as per Companies Act / Income Tax Act

Audit conducted by Chartered Accountant (if turnover > ₹1 crore / ₹10 crore digital)

Labour & HR Compliance

PF registration and monthly contributions if ≥ 20 employeescritical

ESI registration and contributions if ≥ 10 employeescritical

Professional Tax registration and deduction (state-wise)

Minimum wages compliance as per state schedule

Gratuity provisions for employees with 5+ years service

Product & Sector-Specific Licences

FSSAI licence if trading in food items (state or central based on turnover)critical

Drug licence from State Drug Authority if trading in pharmaceuticalscritical

BIS dealer registration for products covered under Compulsory BIS (electronics, PPE, etc.)

PESO licence if dealing in explosives, petroleum or pressurised products

Result

Section	Items	Compliance

Notes & assumptions: Thresholds and requirements vary by state, product category and business turnover. Consult a CA or compliance consultant for your specific situation.

Disclaimer: This tool provides an indicative estimate for general planning only and is not professional, legal, financial, medical or engineering advice. Reference values are editable defaults that vary by location, vendor, regulation and date. Verify critical figures with a qualified professional. Varada Nexus accepts no liability for decisions made using this tool.

Get expert help

Planning a project?

Share your numbers and we will help you plan the next step.

Contact Varada Nexus for detailed consultation

FAQ

What is the penalty for non-filing of GST returns?

Late fee of ₹50/day (₹20/day for nil returns) up to ₹5,000 per return, plus 18% interest on tax liability. Consistent non-filing can lead to GST registration cancellation.

Is Shops Act registration mandatory for online trading businesses?

Most states require S&E registration for any business with even one employee. Online / e-commerce businesses operating from an office or warehouse need this registration.

When does a trading firm need a Statutory Audit?

Companies (all sizes) need CA audit. Proprietorships/partnerships need tax audit if turnover exceeds ₹1 crore (or ₹10 crore if 95%+ digital transactions). LLPs need audit if turnover > ₹40 lakh.