What is Trade License?
A trade license is a vital document that permits an individual or business to operate within a designated area. Issued by the local municipal authority, the trade license ensures that the business complies with local laws and safety regulations. This license is crucial for maintaining public health and safety, as it enforces standards that businesses must follow.
To obtain a trade license, applicants typically need to submit various documents, including proof of identity, proof of address, and proof of business premises. The application process may also require a business incorporation certificate, a no objection certificate (NOC) from neighboring property owners, and a site plan and layout of the business premises. Renewal of the trade license is necessary to continue operating legally. It is advisable to check with the local municipal authority for specific requirements and guidelines.
What are the Main Objectives of a Trade License?
The following are the main objectives of a trade license:
- To regulate and monitor the activities of businesses within a particular area, locality or municipality.
- To ensure that anti-competitive practices are not followed by businesses within a particular locality or municipality.
- To ensure that a business is following the corporation or government compliance.
- To check if a business is breaching laws or causing nuisance in society.
- To regulate the use of hazardous and other chemical substances used in a business and ensure it does not affect the people or environment.
- To ensure businesses use environment-friendly substances and protect the environment.
- To ensure businesses take necessary precautions while carrying out business activities.
Different Categories of Trade License
- Industries license: Small, medium and large scale manufacturing factories.
- Shop license: Dangerous and offensive trades (sale of firewood, cracker manufacturer, candle manufacturer), barber shop, laundry (dhobi) shop, computer shops, clinics, medical stores, etc.
- Food establishment license (FSSAI): Restaurants, hotels, food stall, canteen, the sale of meat and vegetables, bakeries, shopping malls, movie theatres, etc.
Documents Required to Apply for a Trade License
- Address proof of the business
- ID proof of the applicant (Voter ID, Pan)
- Aadhaar card
- Name of Business
- Valid E-Mail Id
- Mobile number linked with Aadhar
- Khatian certificate for Panchayat area
- PAN of the individual in case of proprietorship, PAN of the partners in case of a firm or PAN of the company or Limited Liability Partnership (LLP)
- Memorandum of Association (MOA), Articles of Association (AOA) and Certificate of Incorporation in case of companies
- Certificate of registration in case of a partnership firm and LLP
- A latest municipal property tax receipt in case the premises are owned, else lease document or consent letter of the owner of the property (NOC) where the business is registered (For Municipal area)
Trade License Regitrstion Fees
Applicable Fees: Govt. Fees + Rs 200 Professional Charges.
Delivery: Within 4 Working Days.