Trade License is a license or permission issued by the municipal corporation granting permission to carry on a particular trade on a particular address. It ensures that the citizens are not adversely affected by health hazard and nuisance by the improper carrying of trade. The provision of trade license is laid down by the State government to monitor and regulate the trade within a city. Trade License is granted only if the business follows all the rules and regulations laid down by the corporation, and safety authorities, of the respective state in which the business is located. The application has to be filed with the Commissioner in the municipal corporation 30 days before the start of business along with mandatory documents.
The main aim to acquire trade license in India is to control business thriving in the market.
Trade license is a way to regulate and check the business activities so that no harm or health hazard is caused nor there is any nuisance in the area of the business or locality.
Trade license proves that the business activities are carried out in the government vigilance.
It also provides assurance to the people and authorities that proper rules and regulations, and extra care and protection are followed while carrying out the business.
It is required to control the locations by restricting the people from executing certain types of businesses from their home location and to maintain the business environment and locality environment.
The standard guidelines must be followed and it is also important not to use any unethical or hazardous substance or materials which can cause problems to other humans.
- The Applicant Must have attained 18 years of age
- The Applicant must not have any criminal record
- The Business should be lawful.
Step 1: File Application for licensing in the respective Municipal Corporation
Step 2: Visit the Website of Municipal Corporation
Step 3: Click on Citizen Services Option
Step 4: Click on Apply for online Services
Step 5: Register and fill up all credentials and personal details
Step 6: Click on Submit button. Now user ID and Password are created
Step 7: Login with username and Password
Step 8: Apply for new license
Step 9: Fill the information asked for.
Step 10: Fill type of business, NOC, Property Tax Details
Step 11: Click on Submit button and upload documents
Step 12: The application and documents will be verified by local body officials
Step 13: After Verification automatic Unique Application Number is Generated
Step 14: Pay fee by clicking on make Payment option
Step 15: Now the License Number is issued
Food Establishment License
For Hotels, Canteens , Food Stall seller, Grocery shops
For Factories, Power Looms, Flour MIlls, Other manufacturing units
For Barber shops, Dry Cleaners shops, Crackers and candle shops, Building Material shops
- Address Proof
- Identity Proof
- Certificate of Incorporation, AOA and MOA of the company
- Cancelled Cheque and Bank Statement
- Inome Tax return and Property Tax Receipt
- Documentary proof of establishment of trade
- Legal Occupancy document proof of the establishment or unit or allotment letter provided by the government agency
- Lease Deed of the premises
- No Objection Certificate/ NOC from the land-owning agency
- Documentary proof for the non-existence of unauthorized construction
- Documents required for the renewal of a trade license
- PAN for the entity
Validity of Trade license is for one year
The renewal application is submitted within 30 days from the date of expiry of the license. The delay in fling of the application can cause the payment of late fees which is 50% of the license fees.
- Original copy of Trade License
- Address and Identity proof
- Previous year Challan
- Old G-8 receipt
- Property tax receipt
Penalty for Not obtaining Trade License
Penalty is different in different states as per prescribed in the Municipal Corporation Act. The business can be stopped by the officials and other legal action can be taken against the trader.
Revoking of Trade License
The trade license will be be revoked when the trader has violated the standard guidelines prescribed by the MCD Act. The Municipal Corporation can revoke the license on receiving the complaints against the trader.
Purpose of Issuing Trade License
The purpose of issuing Trade license is to avoid unhealthy competition in the market. It is the way to control and monitor the business carried out by the traders in the locality.
Difference between Contractor Licensing and Trade License
The contractor licensing is different from the business license.
The contractor license is issued particularly for the business person who is
involved in the construction jobs whereas the business license is used by the
business person who is involved in food and industrial business.