Shop and Establishment Signage License in India - Procedure, Fees, and Documents Required

Updated on March 10, 2025 03:51:32 PM

India's business environment is growing into infinite numbers in terms of well-differentiated enterprises, from small shops to large commercial establishments. In this, businesses typically require signboards or name boards as an essential marketing tool for customers. Any retail shop, restaurant, or even an office will always need its signage to be perfectly observed. However it has to adhere to local bodies in respect to obtaining the Shops and Establishment Signage License before displaying their signboards.

Shops and Establishments Signage License: This license is permission issued by local municipal authorities or urban bodies, enabling businesses to erect signboards or other modes of advertising on their premises. Therefore, with this license, businesses can use signage to enhance their brand, services, or products while remaining in compliance with local regulations regarding safety, aesthetics, and content in areas of interest. In India, the license for signage applies to any business that is registered under the Shops and Establishments Act, which regulates the conditions of working, the welfare of employees, and the overall functioning of businesses in India.

Regulations vary highly from state to state, even within municipalities under the same state. Some may require further additions, such as size requirements on signs, certain languages that must be used, and other guides for placement.

What is a Shop and Establishment Signage License?

It is a legal permit that a business organization needs to display signboards, hoardings, or any other kind of advertisement or promotion on its premises. It is issued by local municipal authorities or urban local bodies; this license ensures that the businesses located in the area follow the local regulations where the size of the signboard, their placement, and the message displayed on the signboard should be regulated. The main motive of this license is the control of outdoor advertisements because these advertisements disturb public safety, beauty, and the contents of an advertisement

The license is compulsorily required by business enterprises enrolled under the Shops and Establishments Act, such as retail shops, restaurants, offices, and other commercial enterprises. In this category come all kinds of signage—signboards or nameplates, illuminated or digital boards, or large hoardings projecting out of business premises.

For all of the above, an application has to be made for a license to post the signage along with documents such as proof of business registration, size, and design of the sign, and proof of ownership or lease of the premises. Occasionally, the authority may inspect to ensure that the signposting does not constrict the flow of traffic or otherwise pose any danger to public safety.

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Types of Shop and Establishment Signage License in India

In India, Shop and Establishment Signage License vary by the nature, size, and location of the signage. The licenses ensure that the businesses are within the locality's regulations in public safety, aesthetics, and content. Major types of Signage Licenses include:

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Documents required for Shop and Establishment Signage License in India

Required documents for Shop and Establishment Signage License in India are given below:

  1. Application form
  2. Identity Proof
  3. Address Proof
  4. Site ownership proof or NOC
  5. Site Photographs
  6. Site/plan map
  7. Structural stability Certificate
  8. Signage Design & Layout
  9. Electricity load sanction
  10. Consent from local authorities
  11. Environmental Clearance
  12. Fire Safety Clearance
  13. Consent from the Traffic Department
  14. Undertaking for Removal
  15. Payment receipt
  16. Approval from Heritage Committee
  17. PAN Card
  18. Insurance Certificate
Documents required for Roadside Advertisement Signage License
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Process to get a Shop and Establishment Signage License in India

Generally, the process of applying for a Shop and Establishment Signage License in India follows some steps. Here's a simplified overview of the procedure:

Step 01 - Identify applicable authority

Normally, the authority issuing the license for signage is the local municipal corporation or the urban development authority in the area where the signage is proposed to be erected.

Step 02 - Regulations governing the local signage

Each local authority has certain rules in terms of the size, design, placement, and illumination of signs. Ensure that you get the rulebook or guidelines from the authority to be guided by local rules.

Step 03 - Prepare the relevant documents

Some documents will be required to accompany your application. Prepare the Required Documents

Step 04 - Submission of the Application

Applications have to be filled out duly and submitted, along with other required supporting documents, to the concerned municipal office. Some of these are also available to be applied online through the portals of some municipalities for the issuance of Signage Licenses.

Step 05 - Inspection by the Authorities

However, after the lodging of the application, the local body or municipal authority can conduct a site visit to see if the proposed sign adheres to the rules related to safety, size, and placement.

Step 06 - Review and Approval

The relevant authority will assess your application, documents, and inspection report. In case the above requirements are in order, your application will be approved.

Some time is actually required to be approved, depending on the authority in that area and how complex the signage is.

Step 07 - Issuance of the Signage License

After the application is approved by the authority, you can receive your license for the signage. This license will contain information about how long it lasts and how long it should be renewed.

Step 08 - License Renewal

Signage Licenses are usually set to have an expiration date. Before the license expires, you will need to submit renewal requests along with the required documentation and fees once more.

Note: It might take some weeks or even months, depending on the complexity of the procedure and the workflow of the authority.

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Fees for Shop and Establishment Signage License

Charges for a Shop and Establishment Signage License in India depend on the type, size, location, and duration of Shop and Establishment Signage. Larger, lighted, or digital signs are much more expensive than smaller, less complicated signs. Tabulated below is the fee structure for Shop and Establishment Signage License in India:

Types of signage Size sq. ft Government fees ₹
Small signboards Up to 15 sq. ft ₹1,000 to ₹10,000
Medium signboards 15 sq. ft ₹10,000 to ₹30,000
Large signboards 40 to 100 sq. ft ₹30,000 to ₹50,000
Extra large signboards Above 100 sq. ft ₹50,000 to ₹2,00,000
Non-illuminated signage Any size ₹1,000 to ₹10,000
Illuminated signage Any size ₹5,000 to ₹50,000
Digital LED signage Any size ₹50,000 to ₹2,00,000

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Professional fee for a Shop and Establishment Signage License in India starts from ₹ 15,000.

Note: The aforementioned fees are exclusive of GST.

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Conclusion

Every business must acquire a Shops and Establishment Signage License to hoist up its brand name or an advertisement. Licensing procedures ensure that businesses follow local regulations, public safety, and the aesthetic appearance of the city. By following the proper procedure, businesses avoid fines, legal, and removal of signage in general and focus on the growth of their brands and reaching more customers instead.

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Frequently Asked Questions

What is a Shop and Establishment Signage License?

The license for shop and establishment signage allows a business to have signage; the licenses vary by jurisdiction, but they generally regulate nameplates, advertisements, or promotional messages of any sort and require specific size, placement, and content.

Who issues the licenses for shops and establishment signage?

It is issued usually by local municipal authorities or urban local bodies. The authority may be subject to variation based on the location of the business.

What happens if I install signage without a license?

Erecting hoardings, display boards, etc. without license. In this case, a penalty would be payable with fines, and the hoarding or display board would be removed by the local authorities. The penalty would be ₹5,000 to ₹50,000 or more.

What are the penalties for non-compliance?

Failure to comply with these regulations can lead to fines, penalties, or legal actions being meted out. Authorities may take down any unauthorized signs anytime without any warning.

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