The Government of Himachal Pradesh on August 20, 2026, issued the Himachal Pradesh Municipality, (Grant of Trade License for Trade Activities, Use of Premises and Storage of Articles in a Premises) Byelaws 2026.
The Bye-Laws prescribe a mandatory trade licence for businesses operating within the Nagar Panchayat area. Licences are generally issued for one year, with renewal allowed within one month of expiry without penalty, while renewal during the second month attracts a 50% penalty. After this period, a fresh licence application is required. A No-Dues Certificate from all branches of Nagar Panchayat Kunihar is mandatory for renewal.
A Temporary Trade Licence is prescribed for mobile vendors and temporary/makeshift shops or stalls at fairs and similar events for 1 to 30 days, with a fee of ₹300 per month. Trade registration with the Himachal Pradesh Labour & Employment Department is a prerequisite for obtaining the ULB Trade Licence. Licence holders must display the licence, maintain records, pay municipal dues, comply with inspection requirements, and avoid encroachment on public streets and drains.
The Bye-Laws also introduce cross-municipal service penalisation, under which defaults relating to services such as garbage collection, property tax, electricity, water or sewerage may affect other municipal services. In particular, municipal service defaulters will not be permitted to apply for, renew, modify or close a trade licence until the violation is resolved. Violations may attract penalties of ₹1,000 for the first offence and ₹10,000 with cancellation of the licence for repeated violations within three months; false self-declarations may attract a penalty of 10 times the licence fee and cancellation.
[Notification No. 163]
