{"id":14559,"date":"2020-08-09T11:05:54","date_gmt":"2020-08-09T05:35:54","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=14559"},"modified":"2020-11-10T16:13:39","modified_gmt":"2020-11-10T10:43:39","slug":"online-trade-license-thing-you-needs-to-know","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/online-trade-license-thing-you-needs-to-know\/","title":{"rendered":"Trade license: Thing you needs to know"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Trade license is\na must-have requirement for every business entity that aims to generate profit\nthrough its operation. Businesses that strive to operate without this license\nmight encounter significant penalties imposed by the municipal corporation. In\ngeneral, a trade license is compulsory, and it must be availed within 30 days\nfrom the commencement of the business. <\/p>\n\n\n\n<p>For the last four decades, the municipal corporation under the State authority engaged with the issuance of <a href=\"https:\/\/corpbiz.io\/trade-license\"><strong>trade license<\/strong><\/a>. Anyone who wishes to avail such license has to approach the municipal corporation with a prescribed application form annexed with mandatory documents. After obtaining this license, it becomes mandatory for the business to operate within prescribed guidelines and have to put illegal activities out of the equation.  <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"650\" height=\"382\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/08\/image-34.png\" alt=\"Trade license\" class=\"wp-image-14560\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/08\/image-34.png 650w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/08\/image-34-300x176.png 300w\" sizes=\"(max-width: 650px) 100vw, 650px\" \/><\/figure><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/online-trade-license-thing-you-needs-to-know\/#Objectives_behind_the_issuance_of_trade_license\" >Objectives behind the issuance of trade license<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/online-trade-license-thing-you-needs-to-know\/#Trade_license_fees_Evaluating_criteria\" >Trade license fees: Evaluating criteria<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/online-trade-license-thing-you-needs-to-know\/#Trade_license_obtainment_procedure\" >Trade license obtainment procedure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/online-trade-license-thing-you-needs-to-know\/#Trade_License_Renewal_Validity_and_Cancellation\" >Trade License: Renewal, Validity, and Cancellation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/online-trade-license-thing-you-needs-to-know\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Objectives_behind_the_issuance_of_trade_license\"><\/span>Objectives behind the issuance of trade license<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Trade\nlicense is generally issued to the following aspects. <\/em><\/strong><\/p>\n\n\n\n<ul><li>Rectify the unethical practice of trade and compliance\nwithin the organization. <\/li><li>Eliminates the illegal business activities. <\/li><li>Ensure proper sanitation protocol for the employees\nwithin the organization. <\/li><li>Stop people from converting their residential area into\na commercial premise to conduct business activities. <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Who can avail Trade license? <\/h3>\n\n\n\n<ul><li>The applicant should be 18 years old. <\/li><li>The applicant should not have any past or ongoing criminal record whatsoever. <\/li><li>The business should fit into the legal framework. <\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/penalty-for-violating-the-trade-license-in-india\/\">Penalty for Violating the Trade license in India\n<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Trade_license_fees_Evaluating_criteria\"><\/span>Trade license fees: Evaluating criteria <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Unfortunately,\nthe fees and the provisions for obtaining such licenses vary from state to\nstate, which often triggers confusion among those who want to obtain it.&nbsp; For instance, if you wish to avail this\nlicense in the Delhi region, your license fee would be evaluated based on the\narea of the business premises rather than the number of employees.\nAlternatively, if you are operating in other states, you may have to encounter\ndifferent fees provisions. Hence, it becomes important for you to become\naccustomed to necessary details before you rush to the authority to avail of\nthe trade license. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Trade_license_obtainment_procedure\"><\/span>Trade license obtainment procedure <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Login to municipal corporation portal<\/li><li>Fill up the application form and upload the scanned copy of the requested documents. <\/li><li>The application will then forward to the SI (Sanitary Inspector) of the concerned division. The confirmation of the same will be sent to your registered mobile via SMS. <\/li><li>Next, the authority arranges an on-site inspection of the business premises on the given date to evaluate the license fee. The investigation will be conducted under the supervision of the inspector.&nbsp;<\/li><\/ul>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong>The inspector would take different traits into the account for the fees evaluation,, such as an area of the premises, production volumes, and lease details.<\/div>\n\n\n\n<ul><li>The inspection report will then forwarded to the sanitary officer of the concerned divisions. After reviewing the report, the officer might issue another order of on-site inspection. Alternatively, if the report comes out to be legitimate, it will be sent to the municipal corporation\u2019s commissioner. <\/li><li>As soon as the commissioner authenticates the report, the authority will forward the demand notice on its portal. <\/li><li>After downloading the notice, the applicant must complete the online payment formalities on the portal itself. <\/li><li>Upon receiving the requested fees, the portal will generate the applicant\u2019s downloadable version of the certification.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Must-have documentation for obtaining the Trade license <\/h3>\n\n\n\n<ul><li>Identification proof such as PAN, DL, or Aadhaar card. <\/li><li>Address proof of the applicant: Aadhaar card, passport,\nand utility bill. <\/li><li>Property documents regarding the business premises <\/li><li>The lease agreement of the property of the business\npremises.<\/li><li>Floor plan of the property on which the business will\nbe conducted.<\/li><li>Receipt regarding the tax payments.&nbsp; <\/li><li>Certificate of occupancy. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Trade_License_Renewal_Validity_and_Cancellation\"><\/span>Trade License: Renewal, Validity, and Cancellation <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Generally, Trade\nLicense remains valid for one year and could be raised again by completing the\nrenewal process online. The applicant seeking license renewal needs to submit\nan application within 30 days of the expiration. Those who refuse to comply\nwith these conditions may have to bear significant penalties prescribed under\nthe law. In worst-case scenarios, the authority can also cancel the trade\nlicense of a business owner. Documents regarding the renewal are as follow: <\/p>\n\n\n\n<ul><li>Scanned copy of the Trade License<\/li><li>Challans of the previous years <\/li><li>Recent tax receipt of the property. <\/li><\/ul>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong> Authority rolled out the renewed license before the end of the financial year. The renewal application would be available to the business owners from the 1st of January.<\/div>\n\n\n\n<p><strong><em>Before we conclude this article, let summarize what we have learned so far:<\/em><\/strong><\/p>\n\n\n\n<ul><li>The Municipal corporation is the governing body that\nissues the trade license to the business owners.<\/li><li>The fee for trade license is not common pan India. <\/li><li>Such a license expires in one year. <\/li><li>The renewal of this license should be done before the\nend of the financial year on the portal of the respective municipal\ncorporation. <\/li><li>Conducting unethical business practices is prohibited\nunder a trade license. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>We can conclude that a Trade License is hugely vital for the survival of the business entity who wants to operate within the <em><strong>legal framework<\/strong><\/em><sup><a href=\"https:\/\/resourcegovernance.org\/sites\/default\/files\/nrgi_Legal-Framework.pdf\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>.&nbsp; The applicant need not go through the complicated procedure to avail this license. All they need to hop onto the online portal, fill up the application, and upload the scanned copy of the requested documents. It is as simple as that. <\/p>\n\n\n\n<p>Sometimes, the applicant often runs into some complications while filling up the application on the online portal. If you want to avert those constraints altogether, give a call to CorpBiz\u2019s helpdesk. Here you can avail exquisite support on financial, taxation, and compliance-related affairs from experienced professionals. If you really want to avert the chances of cancellation of your application, be sure to connect with <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a> today. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/how-to-apply-trade-license-online-india\/\">Step By Step Guide For How to Apply Trade License Online<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Trade license is a must-have requirement for every business entity that aims to generate profit through its operation. Businesses that strive to operate without this license might encounter significant penalties imposed by the municipal corporation. In general, a trade license is compulsory, and it must be availed within 30 days from the commencement of the [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":14561,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[232],"tags":[233],"acf":{"service_id":"89"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"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.","postViews":6959,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/14559"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=14559"}],"version-history":[{"count":5,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/14559\/revisions"}],"predecessor-version":[{"id":19351,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/14559\/revisions\/19351"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/14561"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=14559"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=14559"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=14559"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}