Abhineet Pratap Singh Feb 10,2021 0

Want to Open a Retail Store of Your Own? Check out Necessary Legal Requirements

So you have almost decided to start a retail business of your own and that's why you have come across this page to know about all the requirements; learn and understand about the legal requirements for starting a retail store.

Retailing is the process of selling finished goods and services for their utilization and consumption by the customers. The term Retail refers to the act of selling goods to the end users with small demand rather than selling goods in wholesale (in large amounts). Starting a business of retail means satisfying and filling the demands of people. This means you are trying to take care of the customer and solve their problems and there's no way to learn being away from the customer. 


Retail marketing is a process of promoting awareness of their retail store and creating interest in the goods and services they are giving to the customer in an effort to generate sales from their customer.


Being a retailer can be extremely beneficial and rewarding; 

but it’s not easy.


As entrepreneurs, and especially as retailers can be really challenging because one day you may feel at the top of the world but the other day you become hopeless. 

INSPIRATION is the core of this game; and INSPIRATION is everywhere. 


All you need to do is to pause a little and recall your motive behind the start of your business. The essence here is if you stick to the same formula of business and are afraid of change then you are likely to get the same average results. It is important to keep up with the pace of new changing trends and the competition underway and keep your fingers on the pulse of the market. 

The 4 P's of Retail Industry

The evolution of the market depends wholly upon the 4P rule of the retail industry. Retailers need to keep in mind to justify these 4 rules for their retail industry to prosper and flourish. Retailers use various techniques to grow awareness and attract customers to their retail store. For the goal of ultimate growth of their respective retail business, one needs to create a good mix of all of the 4P’s of the retail industry. 

Following is the breakdown of the 4P’s of Retail Industry:

  • Product 

  • Price

  • Place 

  • Promotion


What is a Business License?

A Business License is a legal permit that grants a person the right to set up a business and operate in your city. It is the authorization to start a business by the permit of the local government.

Licenses Required for Starting a Business in the Retail Industry

The type and number of licenses required to start a business in the retail industry depends upon the city, country and state and their respective laws. Sometimes multiple licenses are needed depending upon the requirements. 


List of some of the licenses required for starting a retail business are:

  • Sales Tax License

  • Resale License

  • Alcohol License or permit

  • City or Country business license or permit

  • Fire Department permit

  • Health Department permit

  • Sign permit

Legal Requirements to Start a Retail Business

When starting a new business venture, one needs to make sure that they are complying with all the legal obligations for starting a new retail business. There is a range of legal requirements which need to be fulfilled to get the license. Here is an easy-to-follow guide to start your business legally:

1) Decide your Legal Structure

The first legal thing you need to do before opening up the doors of your retail shop is to define the legal structure of the company. First of all, one needs to decide the structure of the company to deal with future taxes and liabilities.The structure of the company can be one of the following:

  • Sole Proprietorship

  • Partnership

  • Limited Partnership

  • General Partnership

  • Limited Liability Partnership

  • Limited Liability Company

  • Corporation

 2) Develop a Business Plan and Choose your Business Name

Once you have completed defining the legal structure of your business, you need to decide a business name for the company and design a business plan for it. The business name should be unique and should reflect your brand. After selecting a good business name you need to register it and there are several ways of registering a business, some of them are:

Registering as,

  • Entity Name

  • Trademark

  • DBA (Doing Business As)

  • Domain Name

3) Apply for Registering of Tax ID Number

The Tax ID number is also called as Employer Identification Number which helps the company in hiring employees, to obtain business licenses, to open a bank account and for acceptance and recognition. The business licenses can be:

  • City Business License

  • Country Business License

  • State Business License

  • Federal Business License

4) Apply for Business Licenses and Permits

The licensing of the business is the most important step in the registration process of your business. 

City Business License

The City Business License gives you the opportunity to run your business in that particular city. You cannot operate in that area which is not zoned for your business (zone is provided to you in your city business license).

County Business License

The county business license is the same as the city business license. This license is required if your business is outside the city’s jurisdiction. And these kinds of permits are not as strict as those of the city's business license.

State Business License

A state business license gives the authority to the business for its operation in that state for which you have applied for licensing. Only some kinds of businesses require the state level business license and for others the city or the country level business license is enough. The chunk of businesses which require state level license are:

  • Automotive Mechanics

  • Building Contractors

  • Insurance agencies

  • Electricians, and many more.

Federal Business License

Only a few kinds of businesses require the federal business license and every company need not worry about it. The Federal Trade Commission will inform you to register a federal license for your business if your company is apt for its requirement.

Why Choose Lawgical India?

We are the authorized organization to provide the license permit for the businesses. We have provided legal assistance to companies over 1000 and we have developed good partnerships with various companies. We offer you to come on board and experience our expertise with a lot of ease and convenience.