{"id":2179,"date":"2020-01-20T06:48:03","date_gmt":"2020-01-20T06:48:03","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=2179"},"modified":"2020-12-22T16:11:55","modified_gmt":"2020-12-22T10:41:55","slug":"online-trade-license-before-commencing-business-in-local-municipal-area","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/online-trade-license-before-commencing-business-in-local-municipal-area\/","title":{"rendered":"Planning Business set up in Local Municipal Area; Trade License Should be the First Requirement"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Businesses\nthat carry out trade in the municipal area, necessarily required to have a trade\nlicense. It is a legal document issued by Municipal Corporation, granting\npermission to carry on a particular business. Read out the blog, to get\ninformation related to Trade License, why is it necessary? What are the essential\npoints that need to be kept in mind while applying for the license? <\/p>\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-before-commencing-business-in-local-municipal-area\/#What_is_a_Trade_License\" >What is a Trade License?&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/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-before-commencing-business-in-local-municipal-area\/#Why_Trade_License\" >Why\nTrade License?<\/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-before-commencing-business-in-local-municipal-area\/#Who_is_the_Licensing_Authority\" >Who\nis the Licensing Authority?<\/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-before-commencing-business-in-local-municipal-area\/#Who_needs_to_obtain_Trade_License\" >Who\nneeds to obtain Trade License?<\/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-before-commencing-business-in-local-municipal-area\/#What_are_the_different_categories_of_Trade_License\" >What\nare the different categories of Trade License?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/online-trade-license-before-commencing-business-in-local-municipal-area\/#What_is_the_eligibility_for_a_Trade_License\" >What\nis the eligibility for a Trade License?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/online-trade-license-before-commencing-business-in-local-municipal-area\/#What_are_the_documents_required_for_Trade_License\" >What\nare the documents required for Trade License?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/online-trade-license-before-commencing-business-in-local-municipal-area\/#What_are_the_documents_required_for_the_renewal_of_Trade_License\" >What\nare the documents required for the renewal of Trade License?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/online-trade-license-before-commencing-business-in-local-municipal-area\/#What_is_the_procedure_for_Trade_License\" >What is the procedure for Trade License?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/online-trade-license-before-commencing-business-in-local-municipal-area\/#What_is_the_processing_time_of_Trade_license\" >What is the processing time of Trade license?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/corpbiz.io\/learning\/online-trade-license-before-commencing-business-in-local-municipal-area\/#What_are_the_penalty_provisions\" >What\nare the penalty provisions?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/corpbiz.io\/learning\/online-trade-license-before-commencing-business-in-local-municipal-area\/#Why_should_you_rely_on_Corpbiz_for_your_Trade_Reasons\" >Why\nshould you rely on Corpbiz for your Trade Reasons?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/corpbiz.io\/learning\/online-trade-license-before-commencing-business-in-local-municipal-area\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Trade_License\"><\/span>What is a Trade License?&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A trade license is a legal\ndocument or certificate issued by Municipal Corporation. This license provides\npermission to the applicant to start a specific business in a particular locality.\nIt does not provide any ownership of the property or authority to carry any\nother activity other than the business specified in the license.&nbsp; <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Trade_License\"><\/span>Why\nTrade License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is regulated to ensure that the applicant is not adversely affecting health hazard and nuisance by carrying any improper trade. Mainly, the motive behind license is to safeguard the public at large against the health hazards and nuisance which a trader\/business may cause. Trade License is important to regulate the trade and to ensure compliance with rule and safety guidelines issued by the government. <\/p>\n\n\n\n<ul><li>To ensure that the public at large is not affected by health hazards &amp; nuisance due to carrying of improper trade.<\/li><li>It\u2019s a kind of a medium which ensure that the business is being carried in virtue of relevant rules &amp; safety guidelines.<\/li><li>Trade License business will work under higher goodwill and will attract the customers.<\/li><li>It protects the applicant upon various types of liability.<\/li><li>To do ethical business, <a href=\"https:\/\/corpbiz.io\/trade-license\"><strong>Trade License Registration<\/strong><\/a> is the way which assures that safety measures and guidelines are followed by the applicant while carrying business.<\/li><li>If an applicant\u2019s business requires a trade license and applicant fails to acquire the same than a government can impose fine and penalty. It can also result in the closing of such business.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_is_the_Licensing_Authority\"><\/span>Who\nis the Licensing Authority?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Municipal Corporation has the authority to issue the license. <strong>Municipal Corporation<\/strong><sup><a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/en.wikipedia.org\/wiki\/Municipal_Corporation_(India)\" target=\"_blank\">[1]<\/a><\/sup> with the various licensing department of other specialized departments like health, Industries, engineering department and Fire brigade department, issue License. Permission of carrying business is granted by the government by way of two letters or certificate\/ document where the business is located.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_needs_to_obtain_Trade_License\"><\/span>Who\nneeds to obtain Trade License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Every trader who is engaged in the\nbusiness of general trading activity within the jurisdiction limit of any\nmunicipal corporation is required to obtain a trade license. Nature of business\ndefines the class of trade licenses and differs from state to state.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_different_categories_of_Trade_License\"><\/span>What\nare the different categories of Trade License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Different kinds of Licenses are as;<\/em><\/strong><\/p>\n\n\n\n<ul><li><strong>Shop License<\/strong> \u2013 Dangerous and Offensive trade like a sale\nof firewood, candle manufacturing cracker manufacturing, and Dhobi Shop, barbershop\netc.<\/li><li><strong>Industrial License<\/strong> &#8211; Small, medium and large scale industries <\/li><li><strong>Food Establishment License <\/strong>&#8211; Restaurants, hotels, food stalls, canteens,\nsale of meat and vegetables, bakeries etc. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_eligibility_for_a_Trade_License\"><\/span>What\nis the eligibility for a Trade License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The applicant must have attained the age of 18;<\/li><li>He must not have any criminal record against him;<\/li><li>His business should be lawfully permissible.<\/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\/a-complete-overview-of-shop-and-establishment-act-how-to-obtain-its-license-india\/\">A Complete Overview of Shop and Establishment Act And How to Obtain its License?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_documents_required_for_Trade_License\"><\/span>What\nare the documents required for Trade License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>&nbsp;Application in the prescribed Form 353 duly filled;<\/li><li>&nbsp;In case where applicant\nis any Firm, LLP or a Company, then &nbsp;PAN\nCard, along with the incorporation certificate is required;<\/li><li>An individual applicant needs to submit his\/her Aadhaar\nCard;<\/li><li>Recent Municipality Property Tax Payment Receipt;<\/li><li>Lease documents or consent letter from the owner of the\nproperty (in a case where property is rented);<\/li><li>No Objection certificate &nbsp;from\nyour immediate neighbour;<\/li><li>A certified layout plan of your trade building <\/li><li>A blueprint of a building, if the applicant is carrying\nbusiness of explosives, dangerous goods,&nbsp;\nand timber;<\/li><li>&nbsp;For Katha extracts,\nKatha certificate is required;<\/li><li>Sanction plan<\/li><li>Occupancy certificate (OC)<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_documents_required_for_the_renewal_of_Trade_License\"><\/span>What\nare the documents required for the renewal of Trade License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Original trade License;<\/li><li>Tax receipt\nfurnishing details of&nbsp; tax payments;<\/li><li>Previous payment challans. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_procedure_for_Trade_License\"><\/span>What is the procedure for Trade License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"628\" height=\"420\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-25.png\" alt=\"Procedure for Trade License\" class=\"wp-image-2181\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-25.png 628w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/image-25-300x201.png 300w\" sizes=\"(max-width: 628px) 100vw, 628px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_processing_time_of_Trade_license\"><\/span>What is the processing time of Trade license?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Usually, it takes 7- 10 days of a\ntime period to process the application of trade license in major cities of\nIndia. However, where the applicant belongs to rural areas processing time is a\nbit longer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_penalty_provisions\"><\/span>What\nare the penalty provisions?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In case where business owners\noperate their business without a license, the following can be the risk on non\n\u2013compliance. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Fine and Penalties;<\/h3>\n\n\n\n<p>If any business owner operates\nhis business without any valid license, in that scenario person is liable to\npay fine or penalty. The fine is imposed according to the rules and regulations\nof that particular area\u2019s Municipal Corporation. The fine also depends upon the\nnature of business being carried out.<\/p>\n\n\n\n<p>In case where a person fails to renew his license, a fine of 50% of the license fee is levied upon the person.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Closure of Business &nbsp;&nbsp;<\/h3>\n\n\n\n<p>A person caught without a license\ncan face the closure of business by the MC authority. Unfortunately, person\ndelaying in applying for trade license can face such a consequence, which is\nthe biggest loss business can face. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Chances of legal action<\/h3>\n\n\n\n<p>If a customer is not happy with\nthe service or product offered by you without trade license, customer can file\na lawsuit against you. In fact, doing business without a license is a fraudulent\nact in itself. Furthermore, if the plaintiff wins the lawsuit, there will be chances\nthat owner will be responsible for paying heavy compensation to the plaintiff.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Revocation of License&nbsp; <\/h3>\n\n\n\n<p>If any person violates the rule and regulation of the license or causes any nuisance to the neighborhood, there will chances authority can revoke the license on a mere complaint.&nbsp; &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_should_you_rely_on_Corpbiz_for_your_Trade_Reasons\"><\/span>Why\nshould you rely on Corpbiz for your Trade Reasons?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>We provide you with many reasons to chose us\nover many other license providers in India. We are;<\/em><\/strong><\/p>\n\n\n\n<ul><li>&nbsp;At present <strong><a href=\"https:\/\/corpbiz.io\/\">Corpbiz<\/a><\/strong> is the most trusted service provider, with the highest success rate in providing Government registration services; <\/li><li>Our services are most loved by startup companies;<\/li><li>We have affordable and transparent pricing;<\/li><li>We value the client\u2019s time, so believe in delivering our services on time;<\/li><li>Our team of experts provides continues support, and we guarantee complete client satisfaction.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Trade license is the step taken by the Indian government to safeguard the public at large against the health hazards and nuisance which a trader\/business may cause. Fines and penalties are also being imposed if the authority notices any violation in rule and regulations. Here at Corpbiz, we will help you in the filing of trade licencing and also you can contact us for the renewal of your license.<\/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>Businesses that carry out trade in the municipal area, necessarily required to have a trade license. It is a legal document issued by Municipal Corporation, granting permission to carry on a particular business. Read out the blog, to get information related to Trade License, why is it necessary? What are the essential points that need [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":2182,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[164,232],"tags":[270],"acf":{"service_id":"89"},"authorName":"Shailza Sharma","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2019\/10\/IMG-20190927-WA0001-150x150-22.jpg","authorDescription":"Miss Shailza Sharma, BA. LLB graduate from Himachal Pradesh University. She holds an experience of 2.5 years in various Legal companies and organizations.","postViews":21006,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/2179"}],"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\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=2179"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/2179\/revisions"}],"predecessor-version":[{"id":22613,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/2179\/revisions\/22613"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/2182"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=2179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=2179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=2179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}