7 Proven Benefits of a Trade License That worth Your Attention

calendar10 Aug, 2020
timeReading Time: 4 Minutes
Benefits of a Trade License

Businesses in India are more likely to operate without mandatory compliances for the sake of extra profit. Those who indulge in such activities sooner or later bust by the respective authorities and enforce to pay hefty penalties. The trade license is one such requirement that every business entity needs to avail without exception. If you are one of those who consider trade license a burden, you might have to think again. In this article, you would come across various benefits of a trade license and learn why it is of utmost importance to the organization.

Trade License benefits

Benefits of trade license

There are numerous benefits of trade license, those are as follows:-

1.Increase Credibility

It’s a well-known fact that a trade license is compulsory for all the businesses generating revenue through their product and services. Such a license gives the customers assurance that the organization is a law-abiding entity committed to ethical business practices. Also, this license increases the visibility of the entity within the market in which it is operating. Consequently, this would let the entity establish trust among its target consumer over time. 

2. Render better exposure to financial aid

Every organization needs funds at some point in time to ensure growth and enhanced productivity. Under the influence of the trade license, any entity can secure loans from the financial institute without messing up any constraints. Generally speaking, a trade license can act as a substantial gateway that ensures the seamless inflow of financial aid, which, in turn, triggers the organization’s development. Perhaps this is an unparalleled benefit of a trade license that one could ever come across. 

3. Increase Goodwill in the target market

Increasing entity goodwill is another blissful benefit of a trade license. There are still many business owners out there who are willing the put compliances out of the equation just to gain extra profit. Keep in mind that this might render some short-term benefits to such business owners, but they might struggle to survive in the long run. Whereas, entities with trade license have a high chance of focusing on their core competencies, and garnering the targeted customers’ trust. This would further let them lay a strong foundation for their business, which inevitably ensures improved goodwill in the target market in the long run.

4. Motivate investors

Authenticity and credibility is something that you can’t gain overnight. To reap such benefits, an organization has to work in the direction of the law and maintain compliances without the slightest deviation. Such commitments can even help the business secure significant investments from the outside entities that are keen to inject additional funds to reap fiscal benefits.

5. Ensure fewer confrontation with legal affairs

Apparently, business entities that ensure 100% conformity with compliances are less likely to mess up the legal affairs. It would allow them to flourish some seamlessly than unregistered firms. Under no circumstance, the organization would come across legal obligations unless they intentionally bypass the law.

6. Ensure better sanitation within the organization

Maintaining hygiene within the business premises is one of the key reasons why most businesses try to skip trade licenses.  Sanitation management seeks additional funds, and nearly every organization considered it a pointless expenditure. Remind you better sanitation could dramatically improve the working environment and ensure increased productivity. The entity that works under the canopy of trade license needs to provide better sanitation for the existing employees’ wellbeing. Any failure in this direction could force the organization to address hefty penalties.

7. Discourages unethical practices

Practically, every organization that holds a trade license is under the obligation to avert unethical business practices. The organization that indulges with unfair practices such as exploiting workers, avoiding tax liabilities, generating faulty invoices, and disposing of waste in water and air is more likely to get penalized by the concerned authorities. Henceforth, trade licenses also render indirect benefits to the outside entities connected with organization in one way or another.

Read our article:Step By Step Guide For How to Apply Trade License Online

Some noteworthy points regarding trade license

  • Availing trade license is of utmost importance to the organization that garners revenue via trading activities.
  • The municipal corporation[1] is an issuance authority to deal with the allotment of trade licenses. 
  • Trade licenses serve a validity period of 1 year; after that, the entity needs to submit an application for renewal on the online portal.
  • The authority typically takes 7 to 10 days to approve the license application.
  • During the application reviewing process, the authority would send an inspector to investigate the business premises. 
  • Conducting unethical business practices under the trade license is a punishable offense.


A trade license definitely renders substantial advantages which could further translate into considerable revenue for the company. The Benefits of a Trade License is practically countless as it transforms your business into a legal entity. If you are about to lay a new business foundation, then be sure to avail trade license, without any delay. Please note that those who try to pursue their business activities for more than a month without availing the trade license might come under the scrutiny of governing authority and enforce to pay significant penalty as well. Henceforth, if you really want to bypass legal constraints while conducting your business, its vital for you to act now and submit applications on your respective municipal corporation portal.

Availing a trade license isn’t a tedious task at all. The municipal corporation’s online portal has made it easy for the applicant to complete the registration formalities. If you are one of those applicants who encounter issues while addressing the paperwork regarding the license, then try to get in touch with Corpbiz’s professionals today.

Read our article:Trade license: Thing you needs to know

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