Trade License in Maharashtra: Definition, Document, and Norms

calendar21 Apr, 2022
timeReading Time: 3 Minutes
Trade License in Maharashtra Definition, Document, and Norms

A trade license refers to a legal document that is mandatory for commencing any trade or business in a given region or a location. Businesses present within the state or municipality should get this license from the concerned department of the respective Municipal Corporation. Since a trade license is granted on a state-wise basis, it is important for the applicants to have a general comprehension of the applicable acts. The trade license in Maharashtra should be secured within thirty days of commencing the business activities. Please note that the commissioner of the respective municipal corporation has the authority to grant such a license.

Eligibility Norms around Trade License in Maharashtra

  • The applicant should have a clear track record from the legal standpoint
  • The applicant should not be minor
  • The proposed business type should have legal significance and is allowable under governing law.

Documentations required for trade license in Maharashtra

An application relating to the Trade License can be filed online on the municipal corporation portal along with the following documents;

  • Applicant’s Pan card and Aadhar
  • Incorporation certificate in case the entity is registered under the Companies Act, 2013[1]
  • The municipality property tax receipts (latest ones)
  • Consent letters or Lease documents from the property’s owner
  • NOC from the immediate neighbour
  • A certified layout plan of the business place
  • Khata extracts and Khata Certificate*
  • Tenancy certificate.

What are Khata extracts and Khata Certificate*?

In legal parlance, Khata refers to an account. In the real-estate regime, the term Khata is referred to an account of the property owner. Khata Certificate and Khata Extract are the legal documents issued by the state’s municipal corporation to the property’s owner to access the taxes indebted by the owner. These documents play a pivotal role during the sale and registration of a property. A Khata is primarily used by property owners/holders located within the jurisdiction of respective municipal corporations.

Which authority has the right to confer a trade license in Maharashtra?

The trade license in Maharashtra is accorded by the various departments under the municipal corporation like engineering, health, industries etc. The conditions for the grant of the license vary state-wise. The authority concerned shall levy the underlying penalties if any unregistered premises are found guilty of commencing trade activities without a valid trade license.

What is the procedure for securing a Trade license in Maharashtra?

1. Visit the web-based portal of the Municipal Corporation[1] or gram panchayat of the concentred state.

2. Select the respective division names via tabs to reach out for another page. Here fill out the name of the region for which the particulars are required. The user shall get access to the portal for the desired place. From the given webpage, select the “Contact” menu

3. Visit the respective office.

4. Have contact with the concerned authority at the licensing department of the Municipality office.

5. Meet the concerned department at the licensing department functional under the Municipal Corporation / Municipality office.

6. Applicant shall be guided by the authority on matters related to applicability and process of license

7. Collect the prescribed form or write on a plain A4 paper

8. Furnish the duly filled form along with the required documentation

9. Authorities will vet these paper works and announces the fees.

10. Pay the requested fees and get the receipt.

11. This application shall be shared with the respective authority of the zone for field vetting of the site.

12. Post vetting, the authority shall furnish a verification report to the trade license committee.

13. If the trade license committee identifies no issue on the compliance part, authorities shall grant an order to submit the application fee.

14. Applicant shall submit the applicable fee

15. After these steps, the applicant receives notification from the concerned department. Please comply with the directions enclosed therein to get the license.

16. If the said committee finds any discrepancy on the applicant’s part in meeting the compliance, the application shall be rejected.


1. It is advisable to furnish an additional set of copies of the documentation and get counter signed while applying with licensing department.

2. Visit the nearest business in your locality and ask them about any latest update requirements.


Businesses should not overlook the significance of a trade license in Maharashtra. Without it, they may expose to severe penalties. Aligning with stipulated norms of trade license shall allow the licensee to garner better credibility over time. Despite being a mandate, a Trade license provides businesses with various benefits, including greater market exposure, enhanced credibility, and more clients.

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

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