Trade License introduced in the country about four decades ago. It is primarily availed by those entities that operate in specific regions and serve a particular purpose. The issuance of this license is under the authority of the state government. A trade license authorized the entity to conduct specific business activities within the prescribed establishment. If you are willing to learn how to apply for a trade license online, this article is for you.
Trade License: General Outlook
The applicability of Trade license is limited, and it’s only awarded to those that deal with a specific business. Anyone who avails multiple businesses under one umbrella cannot opt for a trade license. Also, the trade license discourages any provisions related to property ownership. Any individual who commences a new business must get a trade license without any delay to discourage penalty.
The timeframe of 30 days has been given by the state government to obtain a trade license from the date of commencement of the business. Trade license primarily focuses on reducing the people from transforming their home into a commercial business place. The trade license outlines some guidelines for the businesses generating money either from selling services or products. Every business has to act accordingly as per the compliances and fulfilled mandatory requirements without exception.
Read our article:A step by step guide to Renew the Trade License Online
Steps to Apply Trade License Online
The Trade license still doesn’t available through an online portal in many states. However, if you are residing in metro cities like Delhi, then you can submit the online application in the following way.
Important note: Unlike shop act license, issuance of the trade license in Delhi in done on the basis area of premises and nature of business, not on the number of employees.
Reach out for MCD portal
Step 1: Applicants have to visit the MCD’s official portal.
Step 2: Opt the area in which your establishment is located from the following options
- North DMC,
- South DMC, or
- East DMC.
Apply for Trade License
Step 3: Select the “Trade/ Storage License” option located on the home page.
Step 4: Next opt for the ‘Application for New License’ option. This would direct you to the new trade license application page.
Fill up the required information
Step 5: The applicant needs to fill up the required details in the given fields such as an address, license type, detail of the business, fire department NOC, and tax detail of the premise. After putting in all the detail, tap on the Submit button.
Step 6: Fill up the rest of the detail in the application form and then upload the requested documents.
Step 7: As soon as the portal completes the uploading process, select Submit
Step 8: Upon receiving the application, the ULB officials will commence the verification of the documents.
Generation of Application Number
Step 9: As soon as the portal processed the above information, it will generate a unique application number against the submitted application.
Complete the payment process
Step 10: After successful verification, the official member will render the exact estimation of the fee to the applicant for issuance of the license.
Step 11: The applicant will get the notification of the payment on their registered email address and mobile number.
List of Documentation Required for Trade License Online
- Address & Identity Proof of the applicant
- COI, AOA, & MOA of the firm.
- Bank credentials such as a copy of statement exhibiting transaction details along with a Canceled Cheque
- Occupancy evidence of the establishment/unit.
- Documentary proof related to the establishment of trade.
- Lease agreement.
- NOC (No Objection Certificate) from the person who owns the place of business.
Is Trade License Mandatory?
Trade license is Mandatory for the following setups. Those are as follows:-
- Beer and liquor shop
- E-commerce operators
- Logistics companies
- Manufacturing unit
- Cracker manufacturer
- Hotel & restaurant.
Noteworthy points regarding the Trade License
- Applicants over 18 years of age with no criminal records conducting business that fit in the law framework are eligible to avail the trade license.
- Aadhaar card, PAN card, property detail, and certification of incorporation are some mandatory document that needs to avail trade license.
- In many states, Municipal Corporation is the only legal body that issues the trade license.
- Provisions regarding the issuance of a trade license differ slightly from state to state.
- The fee structure for trade license is evaluated on the basis of various factors, and the type of business is one of them.
- The business that has a trade license can reap more benefits than an unregistered entity, whether it comes to goodwill or attracting more customers.
- Businesses having a trade license need to conduct their business ethically.
- In some cases, the applicant must furnish fire NOC while submitting the trade license application on the online portal.
It’s all boiled down to the accuracy of documents that goes along with the application of trade license online. As of now, the online process of filing a trade license application doesn’t seem to be a complicated errand. It is short, convenient, and allows swift uploading of the scanned documents. If you encounter some trouble while attempting the same process, let CorpBiz’s experts help you out.
Our professionals are well aware of the ups and downs of the registration process and know how to bypass unexpected trouble while completing application for trade license online. Feel free to connect with our highly-skilled experts whenever you encounter any issue regarding financial or taxation obligations.
Read our article:Penalty for Violating the Trade license in India