Manipur Unified Trade, Shop and Establishment Licence, 2026: Business Licensing Requirements

Introduction

The Government of Manipur brought the Manipur Unified (Trade, Shop and Establishment) Licensing Act, 2026, into force through Notification No. 2/7/2026-Leg/L dated September 24, 2026. 

The Act introduces a unified digital licensing framework based on self-declaration and risk-based classification. Its stated objectives include reducing duplicate licensing requirements and simplifying administrative processes for businesses operating in the state. 

The framework is relevant to businesses establishing or operating commercial activities in Manipur, including existing licence holders who may need to migrate to the unified system. 

Requirement to Obtain a Unified Licence

The Act requires persons carrying on business in Manipur to obtain a Unified Trade, Shop and Establishment Licence, subject to the applicable provisions and exemptions. 

The requirement also extends to home-based or household non-polluting units and industries with an investment of up to ₹1 lakh. Such units are required to register on the designated portal and pay a one-time licence fee, although they are exempt from annual and renewal fees under the framework described in the Act. 

Existing licence holders are required to migrate to the unified licensing system within one year of notification of the Act or at the time of renewal, whichever is earlier. 

The unified framework provides for a single licence for the same business activity, while preserving the statutory powers and functions of Autonomous District Councils and other local bodies except to the extent specifically provided under the Act. 

Risk-Based Licensing and Inspection Framework

A key feature of the Act is the classification of businesses into low-, medium- and high-risk categories. Classification is based on the activities listed in Schedule I or the risk-scoring matrix in Schedule II. 

The matrix considers factors including public safety, environmental impact, hazardous substances, scale of operations, occupational risk and location sensitivity. 

The applicable licensing and inspection requirements, fees and approval conditions depend on the relevant statutory classification. Businesses should therefore identify the appropriate risk category for each establishment rather than assume that the same licensing process applies to every business. 

Digital Licensing and Fee Requirements

The Act provides for digital administration through a Unified Trade Governance Portal intended to facilitate applications, payments, inspections, renewals and grievances. 

Licences are required to carry a unique identification number and QR code, while approvals and communications are to be issued electronically. Government departments are required to integrate their systems with the portal, and the Act restricts demands for physical copies of documents that are already digitally available, subject to applicable data-protection requirements. 

Licence fees are determined by reference to the applicable risk category and investment or business volume for new establishments. Annual or renewal fees are linked to risk classification and annual turnover, as applicable. Where an establishment undertakes multiple activities, the fee applicable to the highest risk category applies. 

The Act also provides for suspension or cancellation of licences after the licensee has been given an opportunity to be heard. Knowingly making a false declaration may attract monetary penalties of up to ₹1 lakh for low-risk businesses, ₹3 lakh for medium-risk businesses and ₹1 crore for high-risk businesses, in addition to other specified consequences. 

Compliance Steps for Businesses in Manipur

Businesses operating in Manipur should review their licensing position under the new framework. The review should include: 

• Identifying the applicable risk category for each establishment. 
• Determining whether a new Unified Licence is required. 
• Planning migration of existing licences within the prescribed period. 
• Ensuring that information relating to investment, turnover, workforce and business activities is accurate and supported by appropriate records. 
• Reviewing applicable fee obligations and statutory approval requirements. 
• Assessing whether separate registrations, licences or approvals remain necessary under other labour, safety, environmental or sector-specific laws. 

Businesses classified as low or medium risk should also diarise the three-year period described in the Act for obtaining outstanding statutory approvals and clearances, while high-risk businesses should secure the required clearances before commencing operations. 

Conclusion

The Manipur Unified (Trade, Shop and Establishment) Licensing Act, 2026, introduces a consolidated digital framework for trade and establishment licensing. Businesses should assess their risk classification, licence requirements and migration timelines while ensuring that the Unified Licence is not treated as a substitute for separate statutory approvals that continue to apply. 

Last Updated on 27 October, 2026