An Overview of BBMP Trade License

As we already know that Trade License is a vital document for every business in India because it will give exclusive rights to the practice of business in a specific area and without Trade License, no one is allowed to conduct business in a particular area. It is like Shop & Establishment License, where the local municipal authority gives a license to the business operator so they can carry their business in the local area. If you want to start a business in Bangalore, then it is compulsory to obtain the BBMP Trade License from Bruhat Bengaluru Maharashtra Palike (BBMP). BBMP grants permission to carry on a particular trade or business in Bangalore for which it is issued.

Purpose of Obtaining BBMP Trade License

1. To make sure that the citizen is not adversely affected by the health hazard by the improper carrying of a Trade.
2. Facilitates ULBs with a systematic approach to regulate the Trade Activities in its jurisdictional area.

Who Need BBMP Trade License?

Any trading activity mentioned in Schedule X of the Karnataka Municipal Corporation Act, 1976, cannot be started unless a BBMP Trade License is obtained under Section 353 of the Act. The application for the Trade License should be made at least 30 days before the initiation date of Trade to the Municipal Corporation of the respective jurisdiction.

Also, remember that Trade License is not the same as the Registration of a Shop & Establishment. While registration under Shops & Establishment Act will process within 30 days of the commencement of business, Trade License should be under the disposal of Traders before commencing the business. The primary objective of the Shops & Establishment Act is to control the working conditions of employment.

Business entities that come under Schedule X of the Karnataka Municipal Corporation Act are to obtain BBMP Trade License. Businesses that come under Schedule X include:

1. Restaurants & Hotels;
2. Lodging & Boarding;
3. Dry cleaning & laundry;
4. Pesticides and Chemicals;
5. Water Tankers;
6. Food & Food Processing;
7. Beauty Parlours, Barbershops, etc.;
8. Marriage halls & convention centres;
9. Hospitals, nursing homes, and diagnostic centres.

Eligibility Criteria for Obtaining BBMP Trade License

Following are the criteria for obtaining BBMP Trade License:

1. The applicant should have crossed the age of 18 years;
2. The applicant shouldn’t have any criminal records;
3. The business should be legally permissible.

Conditions Lay Down Under Shop and Establishments Act to obtain BBMP Trade License

This Act lays down the following conditions based on which BBMP Trade License is issued:

• Rules & Regulations regarding the display of notices;
• Employment regulation norms for people of all gender & age;
• Conditions for termination & employment;
• The responsibility of the employee & employer towards each other, the society and the firm;
• The permissible working hours on a daily & weekly basis comprise opening & closing hours, rest intervals, overtime policies, holidays, allocation of work, closed days, etc.;
• Rules & regulations regarding paid leaves;
• Regulations regarding the display of notices.

What are the Vital Documents Required for BBMP Trade License?

Following are some vital documents required for BBMP Trade License:

• Submit the application form;
• In case the applicant is a company or LLP, their PAN Card along with the Incorporation Certificate;
• For an individual applicant, Aadhar Card is mandatory;
• Latest Municipality Property Tax Payment Receipt;
• NOC or No Objection Certificate from your immediate neighbour;
• Katha Certificate and Katha extracts;
• NOC from the PCB or Pollution Control Board;
• Lease Documents/Consent Letter from the property owner;
• Sanction Plan;
• A certified layout plan of the trade building showing the working, business, washing, or resting areas;
• Occupancy Certificate (OC);

Registration Procedure for BBMP Trade License

Following are the vital steps to be followed in order to obtain a BBMP Trade License:

1. The applicant must prepare all the vital documents as we mentioned above to make an application for NBBMP Trade License.
2. The applicant or candidate must make an online application for Trade License from the concerned authority.
3. Submit the acknowledgement to the local municipal corporation.
4. Then the authority will come for a physical inspection.
5. After that, the applicant must make payment of the government fees.
6. After successfully completing all the above steps, the applicant shall get a BBMP Trade License Certificate.

Renewal of BBMP Trade License

The Trade Licenses in Bangalore are renewed between 1^st January to 31^st March. The validity of a license that is issued by the concerned authority is for one year of the time period and it should be renewed every year. The application for the renewal of the BBMP Trade License should be made within 30 days from the date of expiry. If the process of renewal is delayed, then it might attract a fine relying on the rules & regulations of the issuing authority.

Following are some documents required to be submitted for the renewal of the BBMP Trade License:

1. Actual copy of the BBMP Trade License;
2. Preceding year challans;
3. Up to date property tax paid receipt.

Payment Options for Payment relating to the BBMP Trade License

Following are payment options relating to the BBMP Trade License:

1. Online Payment: Once the applicant has saved the application for Trade License, select the payment gateway type and click on proceed to payment.
2. At MOH Bank/Office: Once the applicant has saved the Trade License application, download the application via clicking on Save & Pay Later at MOH or Bank Office.
3. DD/Cheque/Cash: In case the Trade fee is below Rs. 1000/- you can submit the application at MOH or Bank along with DD/Cheque/Cash.

Penal Provisions

If a person or an individual fails to fulfil the registration requirements of the BBMP Trade License and starts any trade activity before the issuance of the BBMP Trade License, the person or an individual in the default would be accountable to pay the penalty fees and also legal action could be taken against the defaulter.