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An Overview of Trade License Delhi

Trade License is one of the essential certificates or Documents that permits a company or business to carry on the trade activities within a specific municipal limit for which a Trade License is issued. Trade License Delhi is issued by the MCD or Municipal Corporation of Delhi to traders & establishments to monitor & regulate the various trade activities at the city level. Apart from this, the license doesn't allow the individual to protect the property/any form of legal authorisation of the property where the business is carried on.

Primary Objectives of a Trade License Delhi

The Municipal Corporation of Delhi issues Trade License Delhi to fulfil the necessities of the business. Following are some reasons why the Trade License is required in Delhi:

  • To regulate businesses with a specific municipality or locality;
  • To monitor the business activities. Besides this, Local Authorities can keep a regular inspection on the activities conducted by a business;
  • Businesses with such licenses are more reputed in customers. Customers would have more confidence in their services;
  • This license also regulates the use of eco-friendly substances to conduct activities within a specific location. Risky and other chemical substances are not allowed when it comes to residential & municipal limits;
  • Issuing Trade License Delhi would indicate that a business in Delhi is following compliance with Government;
  • A local authority can check or examine if the business is violating any law or causing any trouble in the society through this license;
  • By securing a license, businesses or companies wouldn’t use their residential premises to conduct any business. Therefore, this form of regulation ensures that businesses are regulated;
  • Businesses having Trade License Delhi would take vital precautions while conducting a particular activity. Businesses having this license would also follow the guidelines issued by the Municipal or Delhi Government from time to time.

An Overview of Delhi Shops & Establishment Act, 1954

Regulations under the Shops & Establishment Act lays down the following rules based on which the Trade License Delhi is issued. Shops & Establishment Act regulates the following factors of doing business in Delhi:

  1. The working hours on a daily & weekly basis;
  2. Regulation of employment norms for children, women, and young people;
  3. Obligations of employees as well as employers;
  4. The duty of the employee & employer towards each other, the society and the firm;
  5. Regulations for the maintenance of registers & records;
  6. Provisions for opening & closing hours, rest intervals, religious & national holidays, overtime work;
  7. Rules & conditions for employment & termination;
  8. Precautions against accidents, fire, etc.;
  9. Regulations regarding the display of notices.

Who Requires Trade License Delhi?

All commercial establishments that come under the following categories need to obtain Trade License in Delhi:

  • An administrative service or an establishment in which individuals are employed and involved in office work;
  • A restaurant, hotel, boarding or eating house, a cafe, etc.;
  • A cinema, theatre/any other place of public amusement or entertainment.

Eligibility Criteria for Trade License

The eligibility criteria for Trade License Delhi are as follows:

  • The applicant should be more than 18 years of age;
  • The applicant shouldn’t have any criminal records;
  • The business should be legally permissible.

List of Vital Documents Required for Obtaining Trade License Delhi

The following vital Documents are to be provided while submitting the application for obtaining Trade License Delhi:

  1. Id proof and address proof – individual;
  2. Affidavit;
  3. Cancelled Cheque & Bank Statement;
  4. In the case of a Company, Certificate of Incorporation, MOA and AOA of the company;
  5. Legal occupancy Document proof of the unit or establishment or allotment letter of the Government agency;
  6. Documentary proof of establishment of Trade;
  7. Documentary proof for the non-existence of unauthorised construction;
  8. No Objection Certificate from the land-owing agency.

Following are some Documents for the renewal of the Trade License:

  • Identity proof of the applicant;
  • Address proof of the applicant;
  • Original copy of Trade License;
  • Old G-8 Receipt;
  • Application for the renewal of a license.

Following are the Documents required for the issuance of a duplicate Trade License:

  • FIR;
  • Indemnity Bond in the prescribed format.

Procedure for Trade License

The applicant must follow the following steps to apply for Trade License Delhi:

Step 1: First, the applicant needs to apply for the application online at the website of MCD; the applicant has to make an application and attach the prescribed Documents. For the online method (in-person), the applicant has to take all the Documents to the relevant authority. With this, the applicant has to fill in the form with the relevant details for the license.

Step 2: After submitting the Documents and the application to the concerned authority, verification of the same will be done by the officials.

Step 3: After submitting the application form, a Unique Identification Number will be generated.

Step 4: Once the application is examined, the authorised official will generate the fee seeking requisite from the applicant for issuing the Trade License.

Step 5: Once the payment is received, the authority will issue the Trade License Delhi.

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Renewal of Trade License

The Trade License can be renewed submit to the following conditions:

  • Generally, this license is renewed between 1st Jan to 21st Mar of the respective Financial Year;
  • Trade License is valid for one year only and it can be renewed every year;
  • The application for the renewal has to be made 30 days before the expiry of the license;
  • During the license renewal, Documents have to be submitted to the respective authority.

How will Corpbiz help you in obtaining Trade License Delhi?

Corpbiz is offering a flawless service of Trade License in Delhi. Corpbiz experts can help you file the application and prepare Documents on your behalf by providing end-to-end services to our respected clients PAN India.

Frequently Asked Questions

It’s a certificate or Document that permits a company to carry on the business or trade activities in a particular area or location.

It is mandatory for the manufacturer, trader, and restaurant owner to work in Delhi, without which heavy penalty will be imposed and may seize or close the business premises as per the MCD.

The applicant must have to file the renewal application of the license with the respective municipal authority and this must be carried out one month before the expiry of the license.

MCD or Municipal Corporation of Delhi issues Trade License.

Yes, a company can make a Trade application.

Yes, you need a Trade License to run a restaurant in Delhi.

You can apply for the Trade License 30 days before the commencement of the business.

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