No more delays or difficulties! Register your business with India’s Best CS/CS/Lawyer. Trade License is a license that permits the businessperson to setup a trade in a particular area. Every businessperson must obtain a trade license.

Trade License Registration Online In India

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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.


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.

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Frequently Asked Questions

  1. Private Limited Company

    By virtue of section 2(68) of the Companies Act, 2013, Private Limited Company is a type of company which offers limited liability with certain restrictions defined in regulations:

    • restricts the right to transfer shares
    • Limits the numbers of its members to 200
    • Prohibits any invitation to the public to subscribe for any shares in, are debentures of the company(No Public Trading of Shares)
    • Prohibits any invitation or acceptance of deposits from persons other than its member
    • The word ‘Private Limited’ must be added at the end of its name
  2. One Person Company

    One Person Company popularly known as OPC introduced in India under the Companies Act, 2013. The concept of OPC is a fusion of sole proprietorship and private company which intends to permit single economic entrepreneurship to take the advantages of a corporate form of organisation.

  3. Limited Liability Partnership

    Limited Liability Partnership is a corporate entity registered under Limited Liability Partnership Act, 2008. It is a form of partnership firm that enjoys limited liability. It is a hybrid form of a partnership that includes the features of a company. Compliances for a company are applicable to LLP.

No, the whole incorporation process is online. You can send the scanned copy of all the required incorporation documents via e-mail. All the forms and documents are filed electronically and even signed digitally.

The company name should be selected with utmost care. The rules for selecting a company are:

  • The name should be ended with the words “Private Limited” in case of private company, “OPC” in case of one person company and “LLP” in case of limited liability partnership which is mandated by law.
  • The name must be unique.
  • Follow the naming guidelines for better chances of approval.
  • The name should be suggestive of the main objectives to be taken by the business entity.
  1. Private Limited Company
    • Appointment of auditor
    • Statutory audit of accounts
    • Filing of annual return
    • Filing of financial statements
    • Holding Annual General Meeting (AGM)
    • Prepare directors’ report
    • Filing of income tax return
  2. One Person Company
    • Appointment of statutory auditor
    • Holding Board Meetings (BM)
    • Filing of financial statements
    • Filing of annual return
  3. Limited Liability Partnership
    • Filing of financial statements
    • Filing of annual return
    • Filing of income tax return
    • Appointment of auditor
    • Filing of LLP annual return

You don’t need a proper office to incorporate a business entity. You can register your residential address as a registered place of your business with MCA for which some address proof along with the NOC (No Objection Certificate) has to be filed with the prescribed form.

NRIs only allowed to incorporate limited business entities in India including private limited company and limited liability partnership. Also, there is no requirement to obtain the prior approval from the government or RBI. But, in order to register a private company or an LLP at least one director/partner must be a resident of India. However, the private limited company is ideal for NRIs.

In order to execute the idea into a long-term business, choosing the right form of business is important. For start-ups, Private Limited Company is the best option for the following reasons:

  • Limited legal compliances
  • No minimum capital contribution
  • Need only 2 directors and shareholders (both can be the same person)
  • Funding can be raised
  • Limited liability of the members

As per the relevant Act, there is no minimum requirement for Paid-up Share capital or contribution to incorporate a private company, one person company or limited liability partnership. However, each shareholder/partner should subscribe to a minimum one share of Rs.10 face value.

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