A trade license is granted by the State’s Municipal Corporation against prescribed application and fees. It acts as legal consent for conducting any trade-related activities in a given region or location. This article will learn how to get trade license in India through a legitimate process.
Fundamental norms of a trade license
- Business with this license need to abide by underlying norms and codes of conduct issued by the State Municipal Corporation. It seeks to provide legal fencing to workers’ rights and protect them from health-related risks by improving the workplace environment.
- But, a this license does not permit the licensee to engage with any stream of business other than mentioned in the registration.
- This license strictly deals with the specific matter of the registered firm and it has nothing to do with the transfer of any kind of property ownership
Objectives of Trade License
- It seeks to mitigate the immoral conduct of the factory owners and compel the entity to stay in line with underlying norms.
- Trade license holders make licensee accountable for their actions and compel them to pursue activities that are not detrimental to employees or public health.
- It seeks to curb unethical business practices.
- This license corrects the subpar Safety measures of the working premises. For this purpose, the concerned Municipal Corporation rolled out revised or new guidelines every now and then.
An Overview on the Issuing authority of Trade license
The issuance of the this license is in the hand of the concerned department of the State’s municipal corporation. Departments that handle the licensing requirement include industries, engineering, health etc. The legalities and paperwork requirements for this license differ state-wise.
A Glance over the Categories of this license
Industries license: As the name suggests, it encompasses the small, medium and large production facilities.
Shop license: Mandatory for establishments dealing with the sale of explosives used during festive seasons, barbershop, candle manufacturers, laundry (dhobi) shops etc.
Food establishment license: It is mandatory for a food stalls, eating houses, hotels, Restaurants, etc.
How can apply for a Trade license in a given state?
- The applicant should have attained a legal age, i.e. 18 years.
- The applicant should have a clear legal background with no pending or active cases whatsoever.
- The business should be qualified as a legal entity.
Documentations requirement for Trade license
- Business’s address proof.
- Applicant contact details
- Aadhaar card
- PAN of the firm as applicable
- MoA in case the establishment is registered under the Companies Act, 2013.
- Incorporation certificate in case the establishment is registered under the Companies Act, 2013[1].
- Premises related paperwork such as municipal property tax receipt, lease agreement, and land owner’s consent on an affidavit, as applicable.
- NOC provided by the nearby property owners
- Premises layout plan (certified)
You can apply via a web-based portal or offline to apply for a trade registration/ license. Let’s move to the next section that will guide how to get trade license in India?
How to get Trade license online?
- Visit the portal of the respective Municipal Corporation and create a new account.
- On the home page, select the option “apply for a trade registration/license.”
- On the next window, the e-form for the trade licence application shall appear
- Fill out the e-form with legitimate information and upload the document as mentioned above in the prescribed format
- Submit the application and visit the payment gateway to submit the applicable fee
- Once done, secure the application number for future reference
Conclusion
This license is issued by the respective department of the State’s municipal corporation against the prescribed application and documents as mentioned above. Hopefully, by now, you have learned how to get trade license in India. In case you have any doubt about this license, then you can write to us without any hesitation.
Read our Article:A step by step guide to Renew the Trade License Online
