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Pankaj Tyagi
| Updated: 11 Aug, 2020 | Category: Trade

Here’s The Checklist Of Documents Required For Trade License

documents required for trade license

A trade license is a legal certificate that allows the entities to conduct specific business at a particular location. Businesses and traders compulsorily need to obtain a trade license to conduct their business licenses. Those who have recently laid the foundation of their business can hop on to the respective municipal corporation’s portal and fill the application for a trade license. That particular application would go along with some mandatory documents. In this article, we have provided a checklist of the documents required for trade license.

Documents Required For Trade License

Documents required for trade license

  • Pan Card of the business owner
  • Bank details such as a bank statement and Canceled Cheque related to the establishment.
  • Applicants seeking trade licenses for LLP need to provide Incorporation certification, Article to association (AOA), Memorandum of association (MOA).
  • Proof regarding the property on which the owner is pursuing the business activities such as utility bill (water bill and electricity bill) and Sale agreements.
  • Lease agreement in case of a rented property.
  • No objection certification from the person who owns the property.
  • Identification proof of all the directors.
  • Recent photograph Address proof of all the Directors.
  • Front end photograph of the business premises and the products traded by the owner.
  • Tax receipt of the property.
  • Occupancy certificate
  • Khata extract and Khata certificate (in case if the business premises is located in the state of Karnataka).

Once you arrange all these documents, make sure to scan and save them on your system. You would require uploading the softcopy of these documents on the online portal once you fill up the application.

Read our article:7 Proven Benefits of a Trade License That worth Your Attention

Documentation required for trade license renewal

If your trade license has been expired, you can renew it by submitting an online application and a given list of documents. Keep in mind that you may have to address some financial penalties in case of the delay of renewal.

  • Copy of the recently expired Trade license
  • Applicant’s address proof along with identification proof.
  • Receipt for Property Tax
  • Application regarding license renewal.

Documents for obtaining a duplicate license

There are instances when business owners misplaced their trade license and struggle to regain it from the authority. This usually happens when an applicant fails to uploads the correct documentation against the application for the issuance of a duplicate license. Nonetheless, the applicant needs to furnish the following documents for the retrieval of the license.

  • FIR copy of the lost trade license.
  • Declaration of Compensation in the prescribed format.

Filling up the application

The application for trade license contains several mandatory fields which are as follow:

  • Name of the applicant.
  • The full address of the applicant, along with the perimeter.
  • Name of the establishment
  • The purpose for which the applicant wants to avail trade license.
  • Establishment’s address along with the PIN code[1].
  • The contact number of the owner
  • Occupancy detail of the business premises.
  • Type of business the owner is dealing with.
  • Category of items applicant trading from the business premises.

What is the Khata certificate or Khata extract?

Khata Certificate

The Khata certificate is just a legal document that identifies the property’s owner. Hence, it is sort of evidence that authenticates the ownership of the particular person on the specific property. The Khata certificate is more or less identical to other registration certifications often used for declaration of ownership. Since it is an extremely vital document, the owner has to take good care of it. Any negligence in this aspect could lead you to legal trouble. Khata certificate plays a crucial role in selling or buying the property. If you don’t possess this basic certificate, there is no way you can prove your property ownership.

Khata Extract

Khata extract provides a briefing of the property’s detail, such as the floor area, location, and built-up area of the property, annual value, and purpose of utilization. This means Khata extract provides the assessment of the property.

Occupancy certificate

Occupancy certificate is a legal document provided by the civic authority, ensuring that premise is built under the provision of the applicable law and building’s code. The occupancy certificate, generally furnished by the builder to the owner, after the completion of the construction.

Key pointers regarding the documentation for the trade license

  • The person who belongs to the Karnataka region needs to furnish the copy of Khata registration, and Khata extracts to the civic authority for obtaining a trade license.
  • Issuance of trade license is mainly done by the municipal corporation of the respective states.
  • Authority in the metropolitan cities generally takes 7 -10 days to complete the trade license application assessment. Upon approval, the downloadable version of the trade license is upload by the authority on its online portal.
  • In the case of missing trade license, the applicant needs to file an FIR in the nearest police station and forward a copy of the same to the respective civic authority.

Conclusion

Trade license transforms the existing establishments into a legal entity. After obtaining this license, entities can continue its business operation without any legal hassles. However, to avail such benefits, businesses have to maintain harmony with relevant compliances.  Keep in mind that unethical practices in trading are prohibited under a trade license. The offenders that involve in the violation of trading compliances have to confront stringent penal provisions. The authority can even shut down the business operation of the establishment in the worst-case scenario.

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

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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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