A Trade License is granted for pursuing business activities for a specific reason. Assortments of business types fall under this license, including dental clinics. A trade license is the last resort of legal requirement for the dental clinic. A Trade License for Dental Clinic cannot be issued until the issuance of other permits, such as registration under the clinical establishment act, Fire NOC, etc. This blog explores the legal needs around the Trade License for Dental Clinic in detail.
Trade license revolves around the concept of protecting the public interest against the malpractice of trade business. The Trade License ensures that the licensee complies with the prescribed provisions and doesn’t hamper public health. A Trade License for Dental Clinic is a mandatory requirement.
Importance of Trade license for any Business
The following pointers mentioned below are the critical factors for the necessity of issuance of a Trade License in any business –
- Trade license seeks to protect the public interest by mitigating the health hazards arising from the trading activities.
- Trade license covers a different assortment of businesses, including eating houses, health care, and FBOs[1]. All these business types are bound to follow the Municipal Corporation’s directions rolled out from time to time.
- Trade license seeks to contain trading zone of the businesses to preserve the public interest. Most businesses located in a residential area, except health care clinics, do not qualify for this license.
Requirements of Trade License for Dental Clinic
Below are the assortments of legal requirements one must meet for setting up a dental clinic in India. Please note that the grant of a trade license would not be possible without complying with these requirements.
Minimum Standards for Opening a Dental Clinic in India
The below-mentioned table displays the minimum standards that are essential to be maintained for the purpose of opening a dental clinic in India –
| Space Area relating to one dental chair | Includes Common and Operatory Areas | 100 Sq. ft/single chair Dental unit |
| Standard Area | Space for waiting area, reception, toilets etc. | 35 sq. ft |
| Operatory | Dental Chair Unit, including biomedical waste & washing area | 60 sq. ft carpet area for one dental chair |
| Ancillary area/space for dark room, storage, sterilisation, provision of suction sterilisation and compressed air | 30 per cent of the carpet area for one dental chair |
Requirements for Availability of Furniture and Fixture
Every clinic is liable to meet the minimum requirements relating to the availability of furniture and fixture. The quantity of the following requirements mentioned below varies in accordance with the size of the workplace to ensure better patient care –
- Colour-coded bins for BMW as per state regulations
- Small Refrigerator
- Wash Basin
- Tube Lights / CFL / Bulbs
- Fans
- Screens/curtains
- Instrument Trolley
- Stretcher
- Waiting for Benches/chairs
- Almirah
- Chairs
- Writing tables
- Basic Computer and Printer
Essential Equipment List Issuing Trade License for Dental Clinic
The following mentioned are the essential equipment list for opening a Dental Clinic and applying for a Trade Licence –
- Dental chair equipped with air motor/air rotor/micro motor
- Compressor
- Autoclave
- Sphygmomanometer
- Stethoscope
- Oxygen cylinder with Ambu bag
- Suction Unit
Essential Emergency Drugs
The following drugs mentioned below are required to be mandatorily stored in all dental clinics for emergency medical purposes –
- Glucose / dextrose-25% ampoule
- Hemostat sponge
- Ethamsylate
- Lorazepam
- Albuterol/Salbutamol
- Antihistamine (diphenhydramine or chlorphenramine)
- Nitroglycerine
- Hydrocortisone
- Ephedrine
- Atropine
- Epinephrine
- Oxygen
Documents to Secure a Trade License for Dental Clinic
The following documents mentioned below are the documents required for the application process for the issuance of the Trade License for the Dental Clinic –
- ID proof of the applicant such as bank passbook, DL, PAN
- Applicant’s address proof such as bank passbook, DL, PAN
- Applicant’s photos (passport size)
- Clinic/workplace registration certificate granted under the clinical establishment act
- Property tax receipt
- No objection certificate from the competent department
- Workplace tenancy proof such as sale deed, rent agreement and lease deed.
- Fire NOC
- Medical Gases Licenses/ Explosives Act
- Spirit License
- Lift license (if available)
- Bio-medical Waste Management Licenses
The Procedure for applying for a Trade License
Following is the detailed procedure for securing a Trade license from the respective Municipal Corporation in India –
Step 1: Submission of Form
Firstly, the applicant is required to register under the Municipal Corporation in the appropriate governmental portal. Further, the applicant is required to then submit the duly filled application form.
Step 2: Upload the standard documents
The applicant is required to submit the required documents that are mentioned above in the prescribed format, which has to be self-attested.
Step 3: Furnish the applicable fee
After finishing the filing requirement, proceed to the payment section to furnish the applicable fees. The portal generates the application receipt number immediately after the fee submission. Make sure to note the same for future reference.
Step 4: Inspection of documents and application
Once submitted, the application form along with the documents are sent to the vetting department. Here, concerned officials scrutinise the application and attested documents for errors.
Step 5: Refusal or Accord of registration
Based on the outcome of the vetting process, the municipal corporation may either accept or refuse to grant of trade license. In both cases, the applicant concerned shall be informed by authority via registered contact.
Renewal of MCD Health Trade License
The new Municipal Corporation of Delhi (MCD) Health Trade License remains valid for one year. The validity tenure extends to five years for subsequent renewal. The late renewal shall attract heavy penalties, so renewing this license on time is advisable.
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
- The latest Property Tax Receipts
- KYC of the Business Owner
Conclusion
According to the MCD’s provisions, the health trade license serves as a fundamental 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 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. Hence, it is vital for all business owners to perform trading activities as per the MCD’s guidelines.
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