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Pankaj Tyagi
| Updated: 06 Jul, 2022 | Category: Health License

MCD Health Trade License: Process and Documentation

MCD Health Trade License
Reading Time: 3 minutes

MCD Health Trade License Delhi falls under the Delhi Municipal Corporation Act (DMC), 1957. This License is a mandatory approval that encompasses the activities like production, storage, trading, restaurant and food supply undertaking in the Delhi region. Every manufacturer, trader, and restaurant owner in the Delhi region needs to secure this license. Any non-compliance in this regard may lead to the halt of business activities.

Which businesses fall under the MCD Health Trade License?

MCD Health Trade License is mandatory for the following businesses as per the Delhi Municipal Corporation Act, 1957[1]

  • Furniture Shops
  • Mobile and Electronics Shops
  • Marble Stone Retailing Shops.
  • Stationery and Books Selling Shops.
  • Shoe and Clothing Shops.
  • Restaurants
  • Hotels and Guest House
  • Food Vending Establishment
  • Manufacturing and Retailing Shops.
  • Milk and Milk Products
  • Gym and Spa Club 
  • Confectionery Shops
  • Salon and Beauty Parlors 
  • Catering Shop 
  • Fruit Juice and Ice cream Parlour
  • Cyber Cafes and Coffee Café etc.

Relevance of MCD Health Trade License

The following factors state the necessary relevance of the MCD Health Trade License –

  • MCD Health Trade License Delhi safeguards public health by limiting illegal and unauthorised trading within the Delhi region.
  • MCD Health Trade License

Mandatory Documents MCD Health Trade License

The following licenses are deemed mandatory documents for MCD Health Trade License –

  • Proof of business place such as rent agreement, Sale deed, electrical bill, lease deed, phone bill, water bill, etc.
  • Photograph of the business place along with the products being sold
  • Copy of self-approved identification and address proof of all the key managerial personals such as directors or partners, depending on the business constitution.
  • Passport Photographs of all key managerial personnel such as the Company Directors, Partners, Proprietors, etc.
  • Copy of self-approved company personnel’s PAN Card  
  • Copy of self-approved company’s GST certificate
  • Electricity Connection Number of the business place
  • Cancelled cheque and bank statement of the business place.
  • Email contact and phone number of the Authorised Signatory.
  • Product description

MCD Health Trade License Application Procedure

The following steps mentioned below are the application procedure for the issuance of the MCD Health Trade License –

Step 1: Submission of Form to the MCD

The applicant seeking MCD Health Trade License needs to submit the duly filled application form at the MCD office.

Step 2: Submitting the necessary documents

The applicant is required to submit the above-mentioned documents for evaluation.

Step 3: Submit the application fee

After completing the form filling, head over to the payment section of the portal to submit the applicable fees, do not forget to note the application receipt number as soon as you complete the payment formalities.

Step 4: Document vetting by the MCD inspection department  

The MCD inspection department shall thoroughly examine the submitted application as well as documents for any errors.

Step 5: Refusal or grant of registration

Based on the findings of the inspection process, the authority may either accept or reject the application. Either way, the applicant shall be intimated by the authority about the inspection outcome via registered contact details.

Renewal of MCD Health Trade License

The new license remains valid for one year. The validity tenure extends to five years for subsequent renewal.  The late renewal shall attract heavy penalties, so it is advisable to renew this license in a timely manner.

While applying for renewal, the MCD may ask the license holder for the following documentation.

  • Self-attested copy of the Health Trade License 
  • Payment challans of the past financial years
  • Property tax receipt (latest ones).
  • KYC of the business owner

Conclusion

According to the MCD’s provisions, the health trade license serves as an essential legal permit for imminent businesses to legalise their existence. Without it, they won’t be able to kick start their business undertakings. The non-availability of a health trade license attracts severe penalties for the business owners. In such a case, they may confront massive monetary penalties. In the worst-case scenario, they may find it difficult to continue their journey owing to the ban imposed by the MCD. So, it is henceforth vital for all business owners to perform trading activities as per the MCD’s guidelines.

Read our Article:Health Trade License Renewal

Pankaj Tyagi

Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.

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