What permits are needed to build retail units?

Constructing retail units—whether as standalone shops, shopping complexes, or mall components—requires a series of statutory permits and regulatory approvals from multiple departments. These permits ensure the development complies with land use policies, building codes, safety standards, and urban infrastructure laws.

1. Land Use and Zoning Clearance

• The land must be classified for commercial or mixed-use development in the city or regional master plan.
  
• If the land is currently classified as agricultural or residential, a Land Use Conversion Certificate or Non-Agricultural (NA) Use Approval must be obtained from the Revenue Department or Town Planning Authority.
  

2. Building Plan Sanction and Layout Approval

• Submit architectural and structural plans to the Local Municipal Corporation or Urban Development Authority for approval.
  
• The plan must comply with:
  
  • FAR/FSI limits
    
  • Setback regulations
    
  • Parking requirements
    
  • Building height restrictions
    
• The sanctioned plan becomes the basis for lawful construction.
  

3. Environmental Clearance (if applicable)

• Required if the retail unit is part of a larger commercial complex or mall exceeding a specific built-up area (often above 20,000 sq. m. in many jurisdictions).
  
• Apply to the State Environmental Impact Assessment Authority (SEIAA) or State Pollution Control Board (SPCB).
  
• Clearance includes a Consent to Establish and later a Consent to Operate.
  

4. Fire Safety Approval

• Submit building layouts to the State Fire and Emergency Services Department for:
  
  • Fire NOC (No Objection Certificate)
    
  • Approval of fire exit routes, extinguishers, hydrants, and water storage
    
• Mandatory for multi-tenant or enclosed retail structures.
  

5. Electricity and Power Connection Approval

• Apply to the State Electricity Board or Distribution Company (DISCOM) for:
  
  • New power connections
    
  • Approval of load sanction
    
  • Installation of transformers or generators (if applicable)
    
• Submit internal wiring plans and safety compliance certifications.
  

6. Water and Sewerage Connection Permissions

• Required from the Municipal Water Supply Department or Jal Board.
  
• Permissions include:
  
  • Domestic and commercial water line connection
    
  • Sewage and stormwater drain connection
    
• May also require a Rainwater Harvesting NOC in some urban areas.
  

7. Structural Safety and Soil Testing Reports

• Submit structural safety certificates by licensed structural engineers.
  
• In some regions, a soil test report is required to confirm foundation design adequacy.
  
• These documents must align with local building bye-laws and disaster management norms (especially in seismic zones).
  

8. Shops and Establishment Registration

• Once the retail units are ready to operate, each unit or the property developer must register under the Shops and Establishments Act with the Labor Department.
  
• This license is needed for legal operation, employee regulation, and compliance.
  

9. Trade License

• Issued by the Municipal Authority, this license is mandatory before any retail business activity can commence.
  
• It verifies:
  
  • Type of retail use
    
  • Nature of goods sold
    
  • Compliance with local health and safety laws
    

10. Signage and Advertisement License

• For placing signboards, hoardings, or promotional displays, obtain permission from the Local Municipality or Urban Local Body (ULB).
  
• License is issued based on:
  
  • Dimensions
    
  • Illumination
    
  • Location impact on traffic or pedestrians
    

11. RERA Registration (if units are sold or leased)

• If the retail units are part of a larger commercial real estate project, developers must register with the Real Estate Regulatory Authority (RERA).
  
• Mandatory when multiple units are being offered for sale, lease, or sub-letting.
  

12. Completion and Occupancy Certificates

• After construction is complete:
  
  • Apply for a Completion Certificate (CC) from the local authority.
    
  • After inspection, a Occupancy Certificate (OC) is granted to allow lawful use of the building.