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Overview of Health Trade License

In India, to deal with business affairs pertaining to goods and services that impact the consumer's health, the government made it compulsory to secure a health license. Essentially, there are two kinds of licenses.

Health Care License

Health Care Licenses are granted by authority to business entities in the medical care sector to assure authenticity. The grant of health care license is done on a state basis. The Municipal Corporation of the respective state grants the health care license to the eligible applicant.

Health Trade License

This License acts as a work permit for entities/businesses involved with trading goods and services that affect the consumer's health in one way or another. The entities must secure the License before the start of the business. The various entities like restaurants, hotels, cafes, eating houses, guest houses, tea shops, boarding houses, cinemas, theatres, auditoriums, laundries, dry cleaners, salons, beauty salons, clubs, gyms, fitness clubs, spas, gas pumps including service stations, temporary markets, general stores, shops, food sellers must obtain Health Trade License.

The fundamental reason for the grant of the License is to ensure the health safety of the consumers availing of various goods and services.

The License is a legal compulsion for all businesses offering goods and services relating to food, drugs, or any commodities that are ancillary to the food or medicines. Likewise, for services affecting consumer health, the License is mandatory.

To secure the health Trade License, the applicants must have attained legal age, i.e., 18 years. Besides, they must not have any criminal history.

Benefits of Health Trade license

Despite Being a Legal mandate, Health Trade License Renders Various Benefits to The Business Owner, as Shown Below:

  • Provide a better framework for hygiene and safety within the workplace
  • Make businesses more credible and competitive
  • Strengthen trust among the target consumers
  • A registered business entity enjoys more popularity than an unregistered one
  • It draws the attention of buyers and investors

Features of Health Trade License

Apart from all the benefits mentioned above, the health Trade License has various features such as:

  • Approved by the municipality for performing business
  • Helps in applying for other licenses
  • It is a primary basic License
  • Protects the owner from so many liabilities
  • Trade License registration ensures safety measures and guidelines

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Documents for Health Trade License

  • Proof of payment of all taxes, fines, etc.
  • Site sanction plan
  • Premises plan
  • Ownership proof
  • Copy of Electricity bills
  • Copy of Water bills
  • Medical certificate
  • Self-declaration
  • NOC from the commissioner of police/fire services department
  • Water testing report
  • List of ancillary commodities
  • Sewer connection proof

Procedure for Health Trade License

The process of securing the health trade license differs state-wise as the municipal corporations of the respective state have the right to grant these licenses. The procedure for obtaining the health trade license is given below:

  • Visit the municipal corporation online web portal of the respective state.
  • Fill up the application form for Health Trade License with all the requisite information and Documents.
  • Pay the required government fee.
  • Verification will be done by the appropriate municipal authorities.
  • Once the verification is over, the authority will issue the License.

Health Trade License Renewal

The License is granted for a fixed time period, and it is required to be renewed. The application for its renewal should be filed before 30 days from the date of expiry. The failure to renew the license would attract the penalty as recommended by the authority.

Mandatory Documents Need for License Renewal

  • Copy of the original license
  • Applicant's identification proof
  • Proof of the payment of taxes relating to the property
  • Previous year challan
  • The procedure for renewal of a Health Trade license is similar to the procedure for obtaining it.

Penalties relating to Non-Compliance

If a business owner fails to obtain a health trade license before running his business, then the government can impose penalties and fines on such person or close his business.

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  • Prepare Application for Health Trade License+ Complete all Admissibility Criteria for Preliminary Screening
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  • Health Trade License at your Door Step.

Frequently Asked Questions

As per Council decision, at the instance of the grant of a new license, commence from separate departments such as Estate-1811, EBR, Enforcement Department, Tax, etc., are required to safeguard the council's interest. While issuing no objection, such departments ensure that no illicit constructions are there in subject premise and dues are being paid on time besides maintaining adequate sanitary measures from a health viewpoint, which is scrutinized by the CMO of the area while deciding the application.

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Yes, Health License can be subjected to cancellation if the underlying norms are found to be breached.

No, it is a mandatory requirement to have a health license before commencing the said business affairs. Businesses without valid health licenses would be penalized by the authority in accordance with the provisions of applicable bylaws.

Director (Health License) has been entrusted with the responsibility of granting health authority.

The health of the masses is the fundamental reason behind the grant of a Health trade license. The Municipal Corporation of the respective states has been entrusted with the responsibility of grating this license. A Health trade license is a mandate for businesses in goods and services that affect end-users health. Besides, it underpins several hygiene and safety norms for these businesses.

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