What is Trade License?
A trade license is a certificate that grants permission to an individual or entity to start a particular trade or business in a specific area or location. However, this license only allows the holder to engage in the specific trade or business for which it is issued and does not confer any property ownership rights to the license holder.
The License Department, authorized by the municipal corporation, allocates licenses in collaboration with various consultative departments such as Health, Engineering, Estate, and similar departments.
It is crucial for any business establishment to obtain a primary license from the License Department before commencing any manufacturing, trading, or storage activity. The application must be submitted to the Commissioner of the Corporation at least 30 days before the start of business, along with all the required documents.
Who Can Apply for A Trade License?
Individuals falling under certain categories are not eligible to apply for a trade license. These categories include minors, who are individuals below the age of 18, and individuals with a criminal background. Additionally, businesses must be lawfully permissible to apply for a trade license.
Rietway Consultants Trade License Package
The Services which are included in our package are as Follows:
✅ Consultation
✅ Preparation of Documents
✅Application Filing
✅Trade License and Login Credentials
Documents Required for Trade License
Certificate of Incorporation/ Partnership Deed/ MSME
MOA / AOA of Company
Pan Card of Company
Id and Address Proofs of Partners
Number of Employees
Cancelled Cheque
Electric Bill for Registered Office Proof
Trade License Procedure
Step -1 Arrange all Required Documents: The first step is to arrange all the documents and send the same over the email / WhatsApp to us. Once all the Documents are Received, we will Start the Further Process.
Step – 2: Preparation of Documents: The Next Step is Preparation of Documents to be Submitted at Department.
Step – 3: Filling of Application For Trade License: The next Step is Filling Of Application for Trade License.
Step – 4: After Scrutiny and approval of the application Department Issues Trade License.
Types of Trade License
There are 3 types of trade licenses that a company or individual can apply for based on the type of trade or business they take forward
- Shop License – This license is mandatory for opening any type of retail shop.
- Industrial License – Any small or mid-sized industrial unit requires this license to operate.
- Food Establishment License – If planning to operate a food and beverage establishment such as restaurants, cafes, meat shops, bakeries or vegetable shops, this license is a must-have.
What Are The Benefits Of A Trade License?
A trade license is essential for a business to be recognized as a legal entity and to abide by the regulations set forth by the municipal authority in which it operates. It serves as a measure of competence and allows the business to operate in a commercial space without the risk of closure. Trade licenses in India are valid for one year and must be renewed every year from January 1st to March 31st. The application for renewal must be submitted within 30 days from the expiry date, and a delayed renewal may incur fines according to the issuing authority’s rules and regulations.
Following are the documents that require to be submitted for renewal of the license:
Original copy of the trade License
Previous year Challans
Up to date property tax paid receipt
FAQ on Trade License
Q1. Who Issues Trade License?
The municipal authority of the particular state is the accountable body for the issuance of the trade license.
Q2 Who Need Trade License?
Every trader involved in a general trading activity within the national limits of any municipal corporation is needed to get a trade license. The class of trade license varies from state to state and is based on the nature of the business.
Q3. Do I need a Trade License to run a restaurant?
Yes, a Trade License is required irrespective of which line of business you are in. Any business that exchanges goods or services for money, has to have this license. In the case of a restaurant, you require a Food Establishment license.
Q4. When can I apply for a Trade License?
You can apply for it 30 days prior to the commencement of your business.