TRADING LICENCES [ CAP. 441.  1
CHAPTER 441
TRADING LICENCES ACT
To make provision for the regulation of commercial activities; and to
make provision for matters ancillary to or connected with such activities.
1st January, 2002;
2nd May, 2002
ACT XXVII of 2001.
P A R T  I - P R E L I M I N A R Y
Short title.
Interpretation. 
"commercial activity" means the exercise of any trading or
economic activity including the sale of goods, and the provision of
any services as may be prescribed, irrespective of whether such
commercial activity is exercised from commercial premises or
otherwise but shall not include any commercial activity regulated
under any other law;
"commercial fair" means any fair, irrespective of the name by
which it is called, where a commercial activity is exercised;
"commercial premises" includes any shop, showroom, stall,
store, or any other premises from where any commercial activity is
carried on; and includes any enclosed area within which
commercial fairs are held and includes also any other premises as
may be prescribed from which any service may be provided;
Cap. 363.
the Local Councils Act;
"locality" in relation to a Local Council, shall have the same
meaning assigned to it by the Local Councils Act and includes any
arterial or distributor road or any other area within the boundaries
of such locality, which, under the provisions of the said Act are
excluded from the responsibility of a Local Council;
"Minister" means the Minister responsible for commerce; 
"open air market" means an open air market established under
article 23;
"prescribed" means prescribed by regulations made by the
Minister for the purposes of this Act;
"regulatory authority" means the person or authority designated
by the Minister as regulatory authority in terms of article 3 of this
Act;
"sale" includes any exchange or transfer  in   solidum ;
"street" means any street and includes any road, alley, square,
fortification or other place of public passage.
2 [ CAP. 441. TRADING LICENCES
P A R T  II - A D M I N I S T R A T I O N
Regulatory 
authority. 
3. (1) The administration of this Act shall be vested in the
Minister or such other person or authority designated by the
Minister for any of the purposes of this Act.
(2) Where in this Act reference is made to the regulatory
authority, such reference shall be construed as a reference to such
person or authority.
(3) It shall be the duty of the regulatory authority to issue such
licences and to keep such registers as may, from time to time, be
required for the purposes of this Act.
(4) For the better carrying out of its functions under this Act
the regulatory authority may make arrangements or enter into any
agreement with any other authority or Local Council.
Applicability of the 
Act.
4. Unless otr.erwise provided by or under this Act the
provisions of this Act shall not apply in relation to any commercial
premises licensed, or commercial activity regulated, under any
other law; and in any such case no further licence or regulation
shall be required under this Act.
Establishment of 
Licensing 
Advisory 
Committee.
5. (1) There shall be established a committee to be known as
the Licensing Advisory Committee hereinafter referred to as "the
Committee" which shall be composed of a chairperson representing
the regulatory authority and of not more than six other members as
the Minister may from time to time deem fit to appoint. Such
members shall be appointed by the Minister.
(2) An officer or employee of the regulatory authority shall act
as secretary to the Committee.
(3) Five of the members of the Committee shall be appointed
as follows:
( a ) three members, one each from amongst constituted
bodies who in the opinion of the Minister are more
representative of the interests of the commercial
sector;
( b ) one member from amongst persons who in the opinion
of the Minister best represent the interests of
consumers; and
( c ) one member from amongst persons who in the opinion
of the Minister best represent the interests of Local
Councils.
(4) Where any matter being considered by the Committee
involves a, particular commercial sector, an additional member
representing such commercial sector shall be co-opted from the
relevant sector in the panel referred to in subarticle (5) to attend the
meeting at which the matter will be considered.
(5) For the purposes of subarticle (4), the Minister shall
appoint a panel of persons who in his opinion best represent the
interests of the various commercial sectors.
(6) The members shall hold office for such period not
exceeding three years and on such terms and conditions as the
TRADING LICENCES [ CAP. 441.  3
Minister may deem appropriate. Members shall be eligible for re-
appointment on the expiration of their terms of office.
Procedures of the 
Committee.
6. (1) The meetings of the Committee shall be called by the
chairperson at least once a month or at the request of at least three
members of the Committee.
(2) The quorum for such meetings shall be constituted by the
chairperson and any other three members.
(3) Decisions of the Committee shall be by a majority of votes
of the members present and in the case of an equality of votes the
chairperson shall also exercise a second or casting vote. Where a
member or members are co-opted in terms of article 5(4), those
members shall also be eligible to vote.
(4) The Committee may act notwithstanding any vacancy as
long as a quorum is present.
(5) The Committee shall keep minutes of all its meetings and
shall forward copies of such minutes to the regulatory authority.
(6) The Committee shall otherwise regulate its own procedure.
Functions of the 
Committee.
7. (1) The Committee shall, for the better carrying out of the
provisions of this Act, advise the Minister and the regulatory
authority on any matter relating to the provisions of this Act.
(2) Without prejudice to the generality of the foregoing the
Committee may also:-
( a ) conduct such consultations as may be required;
( b ) advise the Minister and the regulatory authority on any
matter referred to it or out of its own motion;
( c ) advise the Minister on the making of regulations under
this Act;
( d ) do all such things as may be conducive to the better
discharge of its functions under this Act;
( e ) perform such other functions as may from time to time
be assigned to it by the Minister.
Licensing Appeals 
Board.
8. (1) There shall be a Licensing Appeals Board, consisting
of three members, of whom one, who shall be the chairperson, shall
be a person who has practiced as an advocate for not less than
seven years.
(2) The members of the Board shall be appointed by the
Minister for a period of five years, and may only be removed from
office by the Prime Minister on grounds of proved inability to
perform the functions of their office (whether arising from
infirmity of body or mind or any other cause) or proved
misbehaviour.
Cap. 12.
(3) A member of the Board may be challenged or abstain for
any of the reasons for which a judge may be challenged or abstain
in accordance with article 734 of the Code of Organization and
Civil Procedure. In any such case the Minister shall appoint a
person, having the qualifications of the member challenged or
abstaining, to sit as a member of the Board in substitution of the
4 [ CAP. 441. TRADING LICENCES
said member.
(4) A member of the House of Representatives or of a Local
Council, a Judge or a Magistrate shall be disqualified from being
appointed or continuing to be a member of the Board for so long as
he holds that office.
(5) The Minister shall also designate a person to serve as
secretary to the Board.
Appeals. 9. (1)  An appeal shall lie to the Licensing Appeals Board on
any decision taken in accordance with the provisions of this Act
and any regulations made thereunder. The right of appeal shall be
competent to the applicant and to any person showing such interest
as may be prescribed who has duly filed an objection or made
representations against the grant of the licence.
(2) An appeal to the Board may be filed on any of the
following grounds:-
( a ) that a material error as to the facts has been made;
( b ) that there was a material procedural error;
( c ) that an error of law has been made;
( d ) that there was some material illegality, including
unreasonableness or lack of proportionality.
(3) The Board shall, after hearing the appellant, the regulatory
authority and the applicant, if he is not the appellant, decide the
appeal giving reasons for its decisions in open session.
(4) In determining an appeal under this article the Board may:-
( a ) dismiss the appeal;
( b ) annul the decision, and refer the matter to the relevant
regulatory authority.
Powers and 
procedures of the 
Board.
10. (1) The Board shall be competent to hear and decide any
appeal made to it in accordance with the provisions of this Act and
any regulations made thereunder; and the decisions of the Board
shall be final and conclusive.
(2) For the exercise of its functions, the Board may summon
any person to appear before it and give evidence and produce
documents; and the chairperson shall have the power to administer
the oath. The Board may also appoint experts to advise the Board
on any technical issue that may be relevant to its decision.
(3) For the purposes aforesaid the Board shall have the same
powers as are competent to the First Hall, Civil Court according to
law.
(4) The procedure to be followed before the Board, the time
within which and the manner in which an appeal to the Board is to
be made shall be such as may be prescribed; and subject thereto,
and to any other applicable provision of this Act, the Board may
establish its own procedure.
TRADING LICENCES [ CAP. 441.  5
Appeals to the 
Court of Appeal. 
Cap. 12.
11.   Any party to an appeal to the Board who feels aggrieved by
a decision of the Board, or the regulatory authority if it feels
dissatisfied with any such decision, may on a question of law
appeal to the Court of Appeal as constituted in accordance with
article 41(6) of the Code of Organization and Civil Procedure by
means of an application filed in the registry of that court, within
thirty days from the date of the Board’s decision.
Appeal not to 
suspend decision. 
12.  The effect of a decision to which an appeal relates shall
not, except where the Board or the Court of Appeal, as the case
may be, so orders, be suspended in consequence of the bringing of
the appeal.
P A R T  III - L I C E N S I N G   O F  C O M M E R C I A L  P R E M I S E S   A N D  C E R T A I N  
A C T I V I T I E S
Commercial 
premises to be 
licensed.
13.  Subject to the provisions of article 4, it shall not be to
lawful for any person to open or keep any commercial premises
unless he holds in respect of such premises a licence from the
regulatory authority.
Commercial 
activities in a 
street.
14. (1) It shall not be lawful for any person to carry out a
commercial activity from any street without a licence from the
regulatory authority:
Provided that such a licence shall not entitle its holder to
carry out the commercial activity from a fixed place in an open-air
market in a locality without the prior authorisation in writing of the
Local Council of that locality in terms of article 24.
(2) The provisions of subarticle (1) shall not apply in any of
the following cases:-
( a ) when a person or a group of not more than six persons,
in any street, play any musical instrument or otherwise
display their artistic talent and collect money in the
form of voluntary donations from passers-by who stop
to watch the performance;
( b ) when a person, in any street, produces and sells a work
of art.
Cap. 10.
(3) Nothing in the foregoing subarticle shall be deemed to
affect the provisions of articles 38, 40 and 41 of the Code of Police
Laws; and moreover it shall be lawful for any police officer to stop
any activity as is referred to in paragraphs ( a ) and ( b ) of the said
subarticle and direct that the activity be held in another place.
Terms and 
conditions of 
licences.
15. (1) Licences issued under this Part shall be in such form
and shall be subject to such terms and conditions as the Minister
may prescribe.
(2) The regulatory authority or any other person designated in
that behalf shall have the power to require the production of such
documents and information as he may deem necessary for the
purposes of this Act or any regulations made thereunder. 
(3) The regulatory authority or any other person designated in
that behalf may enter into any commercial premises during
business hours to ensure compliance with the provisions of this Act
6 [ CAP. 441. TRADING LICENCES
or any regulations made thereunder.
Power of Police to 
close shops in case 
of riot.
16. Notwithstanding the preceding provisions of this Part,
where any affray or tumult happens or is expected to happen in any
place, the Police may order every commercial premises in or near
the place where the affray or tumult happens or is expected to
happen to be kept closed during such time as, in the opinion of the
Police, is reasonably necessary.
P A R T  IV- R E G I S T R A T I O N   O F  C O M M E R C I A L  A C T I V I T I E S   A N D  
P R E M I S E S
Commercial 
activity to be 
registered. 
17.  Any person carrying on any commercial activity other than
from commercial premises shall be registered in accordance with
the provisions of any regulations as may be prescribed.
P A R T  V- Q U A L I F I C A T I O N S
Qualifications as 
may be required.
18. Any person carrying out any commercial activity and any
person serving customers from any commercial premises may be
required to possess such qualifications as may be prescribed.
P A R T  VI - A C T I V I T I E S   R E Q U I R I N G   P E R M I T   B Y  L O C A L  C O U N C I L S
Permits by Local 
Councils.
19. (1) Where provision is made under this Part that an
activity is subject to a permit from a Local Council, such permit
shall not require, unless otherwise provided, any other permit,
licence or other authorisation from the regulatory authority or any
other authority.
(2) Any reference in this Part to a Local Council shall be
deemed to be a reference to the Local Council of that locality where
the activity requiring the permit is being held.
Public 
entertainment.
20. (1) No person shall hold a public show, exhibition, small
games, a fair, a tombola or any other public entertainment or
similar activity in any street in a locality on any special or specific
day or days without a permit from the Local Council.
(2) Saving the provisions of subarticle (1), a Local Council
shall not issue a permit for a commercial fair without the consent of
the regulatory authority. 
(3) Notwithstanding the provisions of subarticle (1), a person
who holds on any special or specific day or days:
( a ) any procession or other activity held in a public place
held in the context of a feast, any band march, any
disco, ball, dance or any other similar activity,
irrespective of the name by which it is called; or
( b ) a sporting activity which is held across more than one
locality or on a national basis; or
( c ) any activity organised by a political party;
shall only require a permit from the Commissioner of Police issued
under this Act.
(4) It shall be lawful for the Commissioner of Police, for
reasons of public order, public safety or public morality to stop or
TRADING LICENCES [ CAP. 441.  7
suspend any permit issued under this article.
(5) Where a Local Council receives an application under this
article the Local Council shall, not later than two working days
from the receipt of an application for any such permit, and in any
case not later than two weeks before the event is due to be held,
forward a copy of such application to the Commissioner of Police.
(6) The Commissioner of Police shall, without prejudice to
subarticle (4), not later than five days from the receipt of the copy
of such application, inform the Local Council of any conditions
that are to be attached to such permit.
Selling on special 
days. 
21. (1) Without prejudice to the provisions of article 20(4), no
person shall set up any stall or kiosk in any street or exercise any
commercial activity in such street on any special or specific day or
days without a permit from the Local Council.
(2) If the setting up of any stall or kiosk or the exercise of any
commercial activity as aforesaid, is carried out by the person
organising any activity in terms of article 20 for which a permit has
been issued by the Local Council or by the Commissioner of
Police, as the case may be, in terms of the said article, and the
permit includes such setting up of stalls or kiosks or the exercise of
such commercial activity, such setting up or activity shall not
require a permit from the Local Council under this article or a
licence from the regulatory authority under this Act.
(3) On any special or specific day or days a Local Council may
also issue permits for the placement of tables and chairs in a street
for the service of food and drinks:
Provided that this provision shall not apply to the
placement of tables and chairs by any person who in terms of
another licence is authorised to place such tables and chairs on a
regular basis, but shall apply to the extent that such tables and
chairs are not covered by that licence.
Depositing of 
materials, cranes, 
etc.
22. No person shall deposit any building material or other
material or any goods, or deposit or use any crane or other heavy
machinery during the erection, construction or demolition of any
building or other similar project, without a permit from the Local
Council.
Establishment of 
open-air markets.
23. Without prejudice to the provisions of any other
enactment, the Minister, after agreement with the Local Council
may, by Order in the Gazette establish an open-air market.
Selling from open-
air markets.
24. (1) Where an open-air market has been established in a
locality, no person shall be allowed to carry on a commercial
activity from a fixed place in such market unless he is licensed in
terms of article 14 and is authorised to carry on such activity from a
site within such market allocated to him by the Local Council:
Provided that the authorisation of a Local Council shall be
subject to such regulations as may be prescribed under article 27.
Vending machines, 
etc.
25. No person shall place any vending machine or any machine
known as a kiddie ride machine in any street without a permit from
the Local Council:
8 [ CAP. 441. TRADING LICENCES
Provided that this provision shall not apply to the
placement of vending machines or kiddie ride machines outside
commercial premises which are licensed under this Act or any other
enactment and which licence specifically provides for the
placement of any such vending machine or kiddie ride machine.
Appeals from 
decisions of Local 
Councils.
26.  Any decision of a Local Council in relation to a permit or
authorisation required under this Part or in terms of any regulations
made thereunder, shall be subject to appeal in accordance with the
provisions of Part II of this Act, and for such purposes a Local
Council shall be deemed to be the regulatory authority.
Power of Minister 
responsible for 
local government 
to make 
regulations.
27. (1) The Minister responsible for local government after
consultation with the Minister may make regulations on any matter
relating to the issue of any permit or authorisation by Local
Councils under this Part, and without prejudice to the generality of
the foregoing, such regulations may provide for:
( a ) the criteria, conditions and procedures for the issue,
renewal, transfer, suspension or cancellation of such
permits or authorizations;
( b ) the conditions that may be attached to such permits or
authorizations;
( c ) the fees that shall be paid for such permits or
authorizations;
( d ) in relation to open-air markets:-
(i) the conditions under which open-air markets
shall be managed by Local Councils;
(ii) the areas to be marked and allocated to hawkers
and the conditions for such allocations; and
(iii) the obligations of hawkers operating from open-
air markets.
(2) Such regulation may provide that any person contravening
the provisions of any such regulations or any condition attaching to
any such permit or authorisation, shall be guilty of an offence under
the regulations and shall, on conviction, be liable to a fine
( ammenda ) as may be established in such regulations, which fine
( ammenda ) shall not exceed two hundred liri.
P A R T  VII - G E N E R A L  P R O V I S I O N S
Power to make 
regulations. 
28. The Minister may make regulations for the purpose of
regulating the grant, renewal, suspension, transfer or cancellation
of licences or of any one or more categories or classes thereof and,
in particular, but without prejudice to the generality of this
provision, he may make regulations for all or any of the following
purposes:-
( a ) for prescribing the conditions under which licences or
any one or more categories or classes thereof may be
granted, renewed, suspended, transferred or cancelled;
( b ) for providing the manner in which applications for the
grant, renewal, suspension, transfer or cancellation of
licences or of any one or more categories or classes
TRADING LICENCES [ CAP. 441.  9
thereof are to be made; for the contents of such
application; for the manner in which such licences are
to be granted, renewed, suspended, transferred or
cancelled; the form in which such licences are to be
issued, the contents thereof and the manner in which
renewals or transfers thereof are to be indicated;
( c ) for providing the manner in which applications for
such licences as may be prescribed are to be publicised
and for providing the manner in which any person who
may be prejudiced by such a licence may make an
objection or representation thereon to the regulatory
authority;
( d ) for establishing the duration of the validity of licences
or of any one or more categories or classes thereof;
( e ) for establishing the fees leviable in respect of licences
or of any one or more categories or classes thereof,
either by direct determination or by reference to the
manner in which such fees are to be reckoned; and to
make provision for fees leviable in respect of broken
periods:
Provided that regulations made under this
paragraph may establish the minimum and the
maximum of any fee leviable in respect of licences or
of any one or more categories or classes thereof;
( f ) for establishing the penalties to which any offender
against any regulations made under this Act shall be
liable; provided that no such penalty shall be greater
than one thousand liri;
( g ) for establishing the qualifications that a person
carrying out a commercial activity or serving
customers from any commercial premises may be
required to possess;
( h ) for the requirement of registration of, and for
establishing the qualifications that shall be possessed
by, any person carrying on a commercial activity other
than from commercial premises, provided that this
paragraph shall not apply with respect to a person who
carries out a commercial activity which is regulated
under any other enactment and who is required to hold
a licence or warrant thereunder;
( i ) for any matter in relation to any activity carried on in
any commercial premises licensed under this Act;
( j ) for establishing the days and hours during which any
activity may or shall be carried on from any
commercial premises, including open-air markets:
Provided that such regulations may also make
provision in relation to any commercial premises
which is licensed by another regulatory authority
under the provisions of any other enactment;
( k ) for prescribing any matter considered necessary or
10 [ CAP. 441. TRADING LICENCES
expedient for the better carrying out of any of the
provisions of this Act.
Offences and 
penalties.
29. Where any person contravenes any of the provisions of this
Act or of any regulations made thereunder, he shall be guilty of an
offence under this Act and shall on conviction be liable, unless any
other penalty is prescribed under any other provision of this Act:-
( a ) on a first conviction, to a fine ( ammenda ) of not less
than fifty liri but not exceeding five hundred liri;
( b ) on a second or subsequent conviction to a fine
( ammenda ) of not less than one hundred liri and not
exceeding one thousand liri; and
( c ) in the case of a continuing offence to a fine ( ammenda )
of ten liri for every day during which the offence
continues.
Special 
proceedings.
30.  (1) Notwithstanding any other law providing for the trial
and punishment of offences, where the regulatory authority
believes that a person has committed an offence against this Act or
any regulations made thereunder, the regulatory authority may give
notice in writing to such person describing the offence of which the
person is accused and such penalty as may be prescribed in respect
of that offence.
(2) The Minister shall prescribe the penalties that may be
demanded by the regulatory authority in relation to any specified
offence:
Provided that such penalty shall not exceed an amount of
one thousand liri.
(3) Where a notice under this article has been given, the person
named in the notice may, within twenty-one days of the service of
the notice, accept responsibility for the offence specified in the
notice and within the same period pay the penalty indicated in the
notice, and conform with the relative provision of this Act or of the
regulations made thereunder and no further proceedings may be
taken under this Act in respect of such offence.
Power of court to 
cancel or suspend 
licence of 
shopkeepers, etc.
31. In the case of any person carrying on any commercial
activity from commercial premises without a licence or in the case
of a second or subsequent offence for any contravention committed
by any person exercising any commercial activity in virtue of a
licence issued by the regulatory authority, in connection with the
exercise of such commercial activity, it shall be lawful for the court
to cancel the licence, or to suspend the same for any time, in its
discretion.
Non-renewal of 
pending settlement 
of fine.
32.  Where any court or other tribunal has awarded a fine
licence ( ammenda ) in connection with any offence in relation to
any licence under this Act, and such fine has not been paid, the
regulatory authority shall not renew the afore-mentioned licence on
the expiry thereof until such time as the payment of the fine is
effected.
Amendment of  
o ther enactments 
and saving.
33. (1) The enactments in the First Column of the Schedule to
this Act shall have effect subject to the amendments appearing in
relation thereto in the Second Column of the said Schedule.
TRADING LICENCES [ CAP. 441.  11
(2) Any regulations made under the provisions of any of the
enactments being amended or repealed as aforesaid, and shown in
the Schedule to this Act, shall, until other provision is made under
or by virtue of this Act, or of the aforesaid enactments as amended,
continue in force and have effect as if made under this Act or the
relevant enactment as amended, as the case may require.
(3) Any licence, permit, permission or other authority granted
under any enactment or any provision thereof, being amended by
this Act as aforesaid, and still in force immediately before such
amendment, shall continue in force thereafter as if it were a licence,
permit, permission or authority granted under a corresponding
provision of this Act, or under such enactments as amended, as the
case may require; and any such licence, permit, permission or
authority as aforesaid shall be treated and dealt with accordingly.
(4) Any condition attached to any such licence, permit,
permission or other authority shall remain unimpaired until other
provision is made under or by virtue of this Act, or of the aforesaid
enactments as amended and such provision may be made applicable
from time to time in relation to such class or category of such
licences, permits, permission or other authority as may be provided
therein.
12 [ CAP. 441. TRADING LICENCES
SCHEDULE
Enactment Extent of Amendments
Code of 
Police Laws, 
Cap. 10.
1. - 6. Amendments came into force and inserted in Cap. 10.
7. The words "PART X", the heading "OF SHOPKEEPERS
AND OTHER TRADERS" and articles 181 to 193, both inclusive,
appearing thereunder shall be deleted.
Amendments relating to articles 181, 182, 184, 186, 187, 188,
189, 190, 191 and 192 came into force and inserted in Cap. 10.
8. - 10. Amendments came into force and inserted in Cap. 10.
11. The words "PART XIV", the heading "OF THEATRES
AND PUBLIC ENTERTAINMENTS" and articles 201, 203 and
204 shall be deleted.
Amendment relating to article 201 came into force and inserted
in Cap. 10.
All other amendments in force and inserted accordingly in the respective
Chapters and articles.
