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Sushree Dash
| Updated: 27 Jun, 2022 | Category: Trade

Trade License Certificate in India

Trade License Certificate
Reading Time: 4 minutes

A Trade License is a Certification that mandatorily needs to be issued by any business or person for the purpose of carrying out any business in relation to the trading of goods and services. The issuance of this license is authorised under the applicable State Government in accordance with the specific Municipal Limit.

Any business involved in the trading of goods and services within the applicable State, Corporation, or Municipality needs to mandatorily Register for the Issuance of the Trade License from the concerned Central Government if the goods and services are being traded in more than one State of India or from the State Government if the goods and services are being traded within the applicable State.

The time duration for Trade Registration Application is that it is to be applied for within thirty days from the date of initiation of the business. The Trade License, upon successful evaluation, is issued by the applicable authorised personnel within seven to fifteen days from the date of submission of the application. In most states, the application form is approved for the grant or for the renewal of the Trade License is issued to the Commissioner of the applicable corporation.

Eligibility Criteria for Trade License Certificate in India

The following listed below are the Eligibility Criteria for the issuance of the Trade License Certificate in India –

  • The applicant applying for the Trade License must be above the minimum age of eighteen years.
  • The applicant should not be involved in any criminal offences, nor should they have any past criminal records.
  • The Trade Business being applied for should not be legal in terms of the nation’s law.

Documents Needed for Trade License Certificate in India

The following documents are needed for the issuance of a Trade License Certificate in India –

  • Duly filled Application Form
  • PAN Card of the Applicant
  • Incorporation certification of the applicant if the applicant is a firm, or LLP, or company
  • Aadhaar Card of the applicant
  • Receipt of the payment of the last applicable Municipality Property Tax[1]
  • Documentation of the Lease Agreement
  •  Consent Letters from the owner of the premises.
  • No Objection Certificate from the neighbours of the premises
  • A Layout Plan that is Certified of the applicable building that showcases the business layout
  • Katha Extracts
  • Katha Certification
  • Sanction Plan
  • Occupancy Certification

The Issuance of Trade License Certificate in India

The Trade License is authorised for issuance by the applicable department, which varies from state to state and depends on the corporation, such as industries, engineering, health, etc. The Indian Government has provided authorisation for the issuance of a Trade License in a regulated format that can be governed in all cities across India.

The procedure for issuance of a Trade License varies from state to state and is determined on the basis of the Local Governmental Agency Rules and Regulations, which are also known as Municipal Rules and Regulations.

The Categories of Trade License in India

The following categories mentioned are the various types of Trade Licenses that are divided into three specific categories –

Industry License

The Industry License is issued for Production Factories that can be either a Small–Scale Industry, or a Medium–Scale Industry, or a Large–Scale Industry.

Shop License

The Shop License is issued for businesses involved in trading dangerous goods and services that have a higher chance of affecting the environment and the society in case of any mishaps. Some examples of such goods being traded that require a Shop License are, Selling of Firewood, Production of Crackers, Production of Candles, Barber Shops, etc.

Food Establishment License

The Food Establishment License is needed for issuance by the businesses involved in the food industries, which can be Restaurants, Hotels, Canteens, Food Stalls, Businesses involved in trading and selling of Meats and Vegetables, Bakeries, etc.

The Procedure of Trade License Certificate in India

The procedure for issuance is of Trade License Certificate in India is mentioned below –

The Submission of Application

For the purpose of Registration for the Certification of Trade License, the applicant firstly needs to apply under the applicable State Government, or Corporation, or Municipality along with all the specified documents. The further procedure may differ slightly depending on what state that application is submitted to.

The Verification Procedure

Depending on the applicable state, the verification procedure of the state license is issued after the successful completion of the evaluation of the documents submitted in person with the concerned authorities.

The Processing Duration of the Issuance of the Certificate

The duration is taken by the authorised personnel for the processing of the issuance of the Trade License Certificate upon successful completion of the evaluation of the documents submitted is of approximately ten to fifteen days.

The Validity of the Trade License

The Validity of the issued Trade License Certificate in India is of one year in most states of India. The applicable Trade License is needed to be renewed by the year–end upon successful payment of the applicable Trade License Renewal Fee.


The Trade License grants trading of goods and services specifically only for the business that is being applied for. There are specific Rules, Regulations and Provisions provided for the issuance and maintenance of the Trade License Certificate in India that are required mandatorily to be followed by the registered applicant. Upon failure of complying with the said provisions, of the registration requirements and proceeding for the commencement of any activities in relation to Trade Business, strict legal actions are to be taken against the applicant.

Read our Article:A step by step guide to Renew the Trade License Online

Sushree Dash

Sushree Dash has completed BBA-LLB with a specialization in IPR Laws from KIIT University. As a recent graduate, she has both legal and management internship experience in international law firms, Indian law firms and under Indian litigation. She secures good drafting skills for various legal documents in multiple fields of law. She has also published multiple research papers in reputed UGC approved international journals.

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