Owning and running any form of trade or business in the city of Hyderabad requires one to hold a Trade License. A trade license is an official document or permit that allows an individual or group to partake in a specific trade or business at a specified area or location. No individual or group can, hence, legally operate a trade or business in the city of Hyderabad without a government-issued Trade License in hand. In Hyderabad and throughout the state of Telangana, all eligible parties must obtain their Trade License within thirty days from the commencement of business. A trade license, once issued, is specific to the trade or business it has been registered to. The owner of the License cannot, under any circumstance, use said License for a separate trade or business establishment other than the one originally registered. Scroll down to check the procedure and documents for Trade License in Hyderabad.
Types of Trade Licenses in Hyderabad
A business requiring a Trade License in Hyderabad is primary divides into three main groups:
- Industries License: this License covers, and is required to operate, small, medium and large-scale manufacturing plants.
- Food Establishments License: this License covers and is required to operate any and all businesses dealing in food, such as restaurants, bakeries, hotels, food stalls, etc.
- Shop License: this license covers and is required to operate any and all businesses that involve the sale of goods or services to consumers, such as candle makers, sale of firewood, laundromats, barber shops, etc.
Why Apply for a Trade License?
- The Government can impose penalties on any establishment found to be operating without a trade license. This could also lead to the closure of the establishment altogether.
- Having a license safeguards owners of businesses and trades against certain liabilities.
- Licensed businesses and trades will enjoy greater goodwill than unregistered ones.
- Licensed trades and businesses are bound to attract and retain more customers than an unregistered entity due to the legality, or lack thereof, of the respective establishment.
- Good business practices tend to attract better investments.
Who Issues Trade License in Hyderabad?
In the state of Telangana, the issuance of Trade licenses is the responsibility of the Municipal Corporation of Telangana. For the city of Hyderabad, the Greater Hyderabad Municipal Corporation is responsible for the issuance of Trade License for businesses operating within the city.
Who can apply for a Trade License in Hyderabad?
Any individuals of legal age, i.e, 18 years of age or older, who do not have any criminal records can apply for a Trade License. The nature of the trade or business in question must be legally permissible for the application to be valid. The applicant must also have a thorough understanding of the jurisdictions under which they are running their business and must ensure that their establishment is in compliance with relevant norms and regulations.
Required Documents for Trade License in Hyderabad
The Greater Hyderabad Municipal Corporation (GHMC) only requires the applicants to submit two main types of documents for a Trade License in Hyderabad –
- ID Proof, in the form of an Aadhaar Card for the individual and a PAN/Incorporation Certificate for the business
- Lease Deed/Legal Occupancy
Other information documents for Trade License in Hyderabad that may be needed to process the application for a Trade License, such as land use, occupancy certificate, building plan, etc., shall be obtained from the records of the concerned urban body.
Procedure for Obtaining a Trace License in Hyderabad
As per Section 521 of the Greater Hyderabad Municipal Corporation (GHMC) Act, trade licenses are issued either by the Commissioner or by another authorised officer of the GHMC. After gathering all the vital documents for Trade License in Hyderabad, the applicant needs to start the online procedure for the License. The Simplified Trade License System allows for ease of doing business by boiling down the procedure to obtain a trade license in Haryana into a three-step procedure.
Step 1: Submit the application along with the required documents through the GHMC[1] online portal or through e-Seva/CSC
Step 2: Upon submission of the required documents and completion of the initial fee payment, a Provisional Trade License will then be issued on the spot through the online portal.
Step 3: Given that the subsequent Field Verification finds the applicant in compliance with all the norms of the by-laws, a final TIN-generated certificate will then be issued.
As per Section 622(4), appropriate actions will be taken against any trade or business found to be operating without either a Trade License or written permission from the Commissioner. All trades listed under Schedule P are eligible for strict collection of a trade license requiring amendment.
Conclusion
It is both necessary and beneficial for people partaking in any form of trade or business to obtain a Trade License in Hyderabad. Obtaining a Trade License legitimises the trade or business in question and improves the overall status of the establishment. An establishment that attempts to function without obtaining a license will not only be penalised by the Government upon discovery but would also not be able to hold a respectable position within the community that it aims to cater to due to the illegal nature of its commencement.
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