Trade License Registration

A trade license refers to a legal document that renders a permit to the applicant (individual seeking to set up a business) to start a specific trade or business in a particular locality/area. It ensured that the trade or business was performed by complying with all the relevant safety provisions as rolled out by State Municipal Corporation. It safeguards the residents from being hampered by any health hazards. However, the license does not permit the business owner to perform any business activities that fall outside the ambit of the license. Moreover, this license does not pass on property ownership to the license holder.

Objective of Trade License

Trade license came into existence nearly four decades back and is being governed via Municipal Corporation Act. The Trade license promotes fair trade practice and seeks to safeguard the public from health hazards of any trade, and it has been made mandatory by the Indian government to conduct any kind of business or trade-in particular locality & to ensure that no one is leveraging unethical business practices.

The license seeks to instill harmony in society and mandates business owners to comply with underlying guidelines. The license also provides business owners with the requirement of following safety measures.

Benefits of Trade license

• Avert exploitation of workers serving the premises
• Intact relevant safety measures against Fire related accidents
• Compel Businesses to adopt fair trade practices and preserve everyone’s interest
• Protect consumer’s interest against illicit trade activities; thereby increasing the goodwill of the business over time.
• Aid business growth and escalate credibility to a considerable level

Who Needs to Obtain a Trade License?

Following business entities are mandated to secure trade license from the respective Municipal Corporation before commencing business operations:

• Metropolitan city centre
• Local commercial
• LSC (Local Shopping Complex)
• CSC (Commercial Shopping Complex)
• Community centres
• District centres
• Service market/ Service centre
• Pedestrian shopping streets
• Commercial areas
• MLU (mixed land use)

Which Authority Confers Trade license in Respective State?

• A trade license is granted by the licensing department of the municipal corporation in several departments such as engineering, industries, health, etc.
• The Indian government authorizes the license in a way to govern in cities across the nation. The government of India authorizes the license in a manner to regulate in cities across the country.
• It confers consent via letters or documents/certificates to conduct any business or trade where it is located. The grant of Trade license is done on a state-wise basis and as per the regulations set out by the Municipal Corporation.

Eligibility Criteria for Securing Trade license

The eligibility conditions for securing a trade license in a particular state are as follows:

• The applicant should not be a minor – he/she must have attained legal age, i.e. 18 years.
• The applicant must have a crime-free past record.
• The business should have legal status.
• Done on a state-wise basis and as per the regulations set out by the Municipal Corporation.

Common Documents Required for Obtaining a Trade license

Following is the list that encloses all the mandatory documents needed for securing a trade license:

• Business’s address proof
• Applicant’s identity proof
• Aadhaar card
• Permanent Account Number, i.e. PAN of the applicant in case of proprietorship, else PAN of the firm.
• MoA, i.e. Memorandum of Association in case of Companies
• Incorporation certification in case of Companies
• Property tax receipt (latest ones) in case the business place is owned, else lease document or permission letter issued by the real owner where is business is registered.
• No objection certificate, i.e. NOC issued by the nearby property owners
• Certified Site or floor plan

Steps Followed to Secure Trade license Online

Head over to the Municipal Corporation Website:

The first process is to visit respective Municipal corporation website. ‘Citizen Service’ Option from the respective Municipal Corporation website.

Sign up

Then applicant needs to register his/her details such as Name, email ID, mobile number etc. Once the details are registered then system generates the User ID and password.

Form filing

Once the user ID and password is generated, login using the same the application form will come up in which all information asked need to be filled.

Documents

All relevant documents are required to be prepared in the prescribed manner and must be duly signed by the concerned authority.

Upload Document

Once all the documents are ready it is required to be uploaded online. The application form and Documents are the verified by the Urban Local Bodies officials.

Unique Application Number

After verification a Unique Application Number will automatically be generated.

Fees payment

Once all documentation are done the payment of fees is to be done by going to ‘Make Payment’ option, there are different modes of payment to choose from.

Issue of license Number

When all the documentation and online process is done successfully then the License number for Trade will be issued.

Note: The Licensing Process May Involve The Requirement Of On-Site Inspection. In Such A Case, The Concerned Authority Appoints An Official To Inspect The Business Place To Ensure That Everything Is In Line With Underlying Conditions.