{"id":62411,"date":"2024-02-28T10:31:36","date_gmt":"2024-02-28T05:01:36","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=62411"},"modified":"2024-03-30T14:36:20","modified_gmt":"2024-03-30T09:06:20","slug":"need-of-trade-license-after-gst-registration","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/need-of-trade-license-after-gst-registration\/","title":{"rendered":"Do You need a Trade License after GST Registration?"},"content":{"rendered":"\n<p>Getting a Trade License after GST Registration is necessary since these licenses prove the legitimacy of your business within the national and local limits. State, national, or local authorities are the one that provides you with these licenses to run the business as a legal entity in the respective territorial jurisdiction. The legal standards of the place have to be met to be able to do any kind of business or set up a company. Without compliance with the rules and regulations, one cannot reap the rewards of the policies set by the government to promote business growth. Additionally, there can even be fines if there is any non-compliance with the existing laws of the land which will ultimately hamper the growth of the business.<\/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\/need-of-trade-license-after-gst-registration\/#Need_for_a_Trade_License_and_GST_Registration\" >Need for a Trade License and GST Registration<\/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\/need-of-trade-license-after-gst-registration\/#Reason_for_getting_Trade_License_after_GST_Registration\" >Reason for getting Trade License after GST Registration<\/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\/need-of-trade-license-after-gst-registration\/#Conclusion\" >Conclusion<\/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\/need-of-trade-license-after-gst-registration\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Need_for_a_Trade_License_and_GST_Registration\"><\/span>Need for a Trade License and GST Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There is a great need for a trade license and GST registration while conducting business activities in the country. Let&#8217;s find out why are they needed for business activity \u2013<\/p>\n\n\n\n<p>A <strong><a href=\"https:\/\/corpbiz.io\/trade-license\" target=\"_blank\" rel=\"noreferrer noopener\">trade License<\/a><\/strong> is required to meet the rules and regulations relating to the business activity in that particular area. The license is issued by the municipal or local authorities after checking the mandatory documentation. The main purpose of this license is to check that the operating business is running in accordance with the rules and regulations set by the authority from time to time.<\/p>\n\n\n\n<p>A GST registration is done within the national limits and it is required for the business or companies engaged in the activities of trade of goods or service providing. GST registration is mandatory for businesses that exceed the prescribed threshold limit of sales in a span of one year. Getting the registration gives businesses the right to collect the GST on the goods or services that they have to pay to the government.<\/p>\n\n\n\n<p>GST registration is to fulfil the tax liabilities of the business, whereas the need for a trade license is to comply with the laws, rules, and regulations of the land set by the local authorities. So, a trade license after GST registration is necessary to comply with the legal liabilities of the business to avoid fines and illegality of the business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reason_for_getting_Trade_License_after_GST_Registration\"><\/span>Reason for getting Trade License after GST Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The main reasons for getting a trade license after GST registrationare listed below \u2013<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Legal Compliance<\/h3>\n\n\n\n<p>The foremost requirement of the trade license is to comply with the local laws where the business is situated or carried out. The Local or municipal authorities make it mandatory to follow the rules and regulations that they set up to maintain law and order and for the business to run legally, they have to comply with the laws and get the mandatory licenses, for this getting a trade license after <strong><a href=\"https:\/\/corpbiz.io\/gst-registration\" target=\"_blank\" rel=\"noreferrer noopener\">GST registration<\/a><\/strong> is required.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Fine<\/h3>\n\n\n\n<p>If the business is carried out within the limits of any local authority without the trade license or any other required license or certification, then it can impose fines on such entities. The law-infringing authorities can even be banned from operating the business within their jurisdiction.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Geographical Requirement<\/h3>\n\n\n\n<p>Some business requires different licenses depending on their geographical location in the country. The rules and locations of different locations may also differ as per their location and other relevant factors. When the business takes place in different locations outside the jurisdiction of one place then the business requirements state that the owner has to take the trade license of the other locations as well. For example, setting up a manufacturing unit in Punjab and Jammu Kashmir may require other licenses as well. GST depends on the national authority hence it remains the same as in other places. So, trade license after GST registration is required<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Market Acceptance<\/h3>\n\n\n\n<p>If the business is operating without necessary licenses and certifications such as a trade license, <strong><a href=\"https:\/\/corpbiz.io\/bis-crs-registration\" target=\"_blank\" rel=\"noreferrer noopener\">BIS CRS certificate<\/a><\/strong> (if required), etc then it may lose the trust of potential customers, dealers, investors, and others. This will have a huge impact on the business activities. Compliance with the rules and regulations states that the business is operating legally and there is no chance of any fraud which can take place. A good image in the target market is required by the businesses to grow further, due to which businesses must get a trade license after GST registration.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Government Benefits<\/h3>\n\n\n\n<p>If the business doesn\u2019t have any trade license or is not even registered then it doesn\u2019t have any identity in the eyes of the government. So even if the government comes up with new beneficial policies, incentives, or subsidies, these businesses would not be able to gain profit from it as the scheme will not be applied to them.<\/p>\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>Getting a Trade License after GST registration is necessary to comply with local as well as national laws, rules, and regulations. Keeping track of the required licenses makes the face of the business\/company more legitimate than is required to multi-fold the sales within a period. Certain geographical requirements are there that have to be met to get the perks of various governmental policies, subsidies, etc that come up over time from the Central or even state government. GST registration and Trade License are different and equally important compliances that the entity has to comply with to meet the necessary business requirements.<\/p>\n\n\n\n<p>Corpbiz can help individuals get a Trade License as well as GST registration to help their entity better establish itself in the market. We have a pool of experienced experts who will be able to help you out in the best possible way to get the required documentation for any license that is required to be set up within the country\u2019s territory.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3>When should a person take the Trade License?<\/h3><p class=\"saswp-faq-answer-text\">One can start the business and within thirty days of the setting up of the busines she\/ she should take the Trade License.<\/p><li style=\"list-style-type: none\"><h3>Who issues the GST registration Certificate and Trade License?<\/h3><p class=\"saswp-faq-answer-text\">Trade License is issued by the local or municipal authority of the area where the business activities will take place. If there are multiple places for business activities then every authority\u2019s license would be required. The GST registration certificate is issued by the Central Board of Indirect Taxes and Customs. GST certificate is valid in the whole country as it is issued by the central body.<\/p><li style=\"list-style-type: none\"><h3>What is the threshold limit of GST registration?<\/h3><p class=\"saswp-faq-answer-text\">The threshold limit for GST registration is different for Goods and Services. If the business is into providing services, then its threshold limit is Rs Twenty Lakhs and if it is into goods then the threshold limit is Rs Forty Lakhs. If the turnover of the business is above this limit, then GST registration is mandatory.<\/p><li style=\"list-style-type: none\"><h3>Is it mandatory to get a Trade License in India?<\/h3><p class=\"saswp-faq-answer-text\">No, it is not mandatory in India to get the Trade License for business but, to make the business legal in India they need to have the Trade License and other relevant Licenses and certifications as applicable in the business environment.<\/p><li style=\"list-style-type: none\"><h3>How many types of Trade Licenses are there?<\/h3><p class=\"saswp-faq-answer-text\">There are 3 types of Trade Licenses in India, that are \u2013<br>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Shop License<br>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Industries License<br>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Food License<\/p><li style=\"list-style-type: none\"><h3>How much time does it take to get the Trade License in India?<\/h3><p class=\"saswp-faq-answer-text\">To get the Trade License in India firstly you need to apply with proper documentation with the local authorities having the jurisdiction over the place of business. After the application is submitted, it takes around 10-15 days to get the License for Trade.<\/p><li style=\"list-style-type: none\"><h3>What are the basic requirements to apply for a Trade License application?<\/h3><p class=\"saswp-faq-answer-text\">To get a Trade License in India the applicant needs to comply with these basic requirements \u2013<br>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Must have attained 18 years of age<br>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 No past criminal records<br>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Business must be legal<br>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Business must not have illegal objective<\/p><li style=\"list-style-type: none\"><h3>What is the scope of the Trade License and GST registration certificate?<\/h3><p class=\"saswp-faq-answer-text\">The scope of the Trade License and GST registration certificate is that the Trade License is limited to the local jurisdiction of the authorities while the GST certification is valid throughout the country\u2019s territory.\u00a0<\/p><li style=\"list-style-type: none\"><h3>For how many years a trade license is issued?<\/h3><p class=\"saswp-faq-answer-text\">A Trade License is issued for a period of 1 year and after that you have to renew it from the authorities by paying the license fee.<\/p><li style=\"list-style-type: none\"><h3>What is a Trade License?<\/h3><p class=\"saswp-faq-answer-text\">A Trade license is a certificate of authorization from the local\/ municipal authority to conduct the business proceedings in its jurisdiction in a legal manner.<\/p><\/ul><\/div>\n\n\n<p class=\"text-left\"><b>Read Our Article<\/b>: <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/mcd-health-trade-license-process-and-documentation\/\">MCD Health Trade License: Process And Documentation<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Getting a Trade License after GST Registration is necessary since these licenses prove the legitimacy of your business within the national and local limits. State, national, or local authorities are the one that provides you with these licenses to run the business as a legal entity in the respective territorial jurisdiction. The legal standards of [&hellip;]<\/p>\n","protected":false},"author":85,"featured_media":62433,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[164],"tags":[4125],"acf":{"service_id":"89"},"authorName":"Shuchi Saxena","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2024\/03\/suchi.png","authorDescription":"Shuchi Saxena is an experienced business advisor with 10+ years of experience in management consulting. Maintaining a creative flow while writing content comes naturally to her. 99.2% of her writeups are problem-solving and help readers get what they intend to look out for. Her expertise lies in Startup Advisory, Regulations, Consulting, Environmental Advisory, etc.","postViews":6073,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/62411"}],"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\/85"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=62411"}],"version-history":[{"count":6,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/62411\/revisions"}],"predecessor-version":[{"id":62526,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/62411\/revisions\/62526"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/62433"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=62411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=62411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=62411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}