What is Trade License?

A trade license is a document/certificate that gives the permission to the applicant (person seeking to open a business) to commence a particular trade or business in a particular area/location. However, the license does not allow the holder to any other trade or business than for it is issued. Furthermore, this license does not pass on any kind of property ownership to the holder of the license.

The municipal corporation authorizes license department and allots licenses in consultation with other specific consultative departments like Health, Engineering, Estate and others of the same type.

In perspective of this, it is essential for any business establishments to take primary licenses from the License Department before beginning manufacturing, exchange or storage of any activity. The application has to be filed with the Commissioner in the Corporation 30 days before the start of business. While filing, the business has to submit all the mandatory documents.

Who Can Apply for A Trade License?

When applying for a trade license, there are certain categories of people who can’t apply for a trade license.
Minors: A person aged below the age of 18.
Criminal Background: A person with a criminal record cannot apply for a trade license. Businesses must be lawfully permissible.

Rietway Consultants Trade License Package

The Services which are included in our package are as Follows:
✅ Consultation
✅ Preparation of Documents
✅Application Filing
✅Trade License and Login Credentials

Documents Required for Trade License

Certificate of Incorporation/ Partnership Deed/ MSME
MOA / AOA of Company
Pan Card of Company
Id and Address Proofs of Partners
Number of Employees
Cancelled Cheque
Electric Bill for Registered Office Proof

Trade License Procedure

Step -1 Arrange all Required Documents: The first step is to arrange all the documents and send the same over the email / WhatsApp to us. Once all the Documents are Received, we will Start the Further Process.
Step - 2: Preparation of Documents: The Next Step is Preparation of Documents to be Submitted at Department.
Step - 3: Filling of Application For Trade License: The next Step is Filling Of Application for Trade License.
Step - 4: After Scrutiny and approval of the application Department Issues Trade License.

Types of Trade License

There are 3 types of trade licenses that a company or individual can apply for based on the type of trade or business they take forward 1. Shop License
This license is required for anyone who wants to open a shop. The shop can be of any retail type.

2. Industrial License
This type of license is required for any company that wants to open a small or mid-sized industrial unit.

3. Food Establishment License
Any establishment that plans on getting into the food and beverage industry requires this license. The license applies to restaurants, cafes, meat shops, bakeries and vegetable shops.

What Are The Benefits Of A Trade License?

Legal Entity: In order for a business to be considered as a legal entity it needs to have a trade license.

Manges Rules & Regulations: As stated by the Municipal authority in which the business is located.

A Measure of Competence: With a trade license, a business can operate in a commercial space, without fear of being shut down. This provides a display of confidence and competence, in the business and entrepreneur.

Trade License Renewal
The trade licenses in India are renewed from January 1st to March 31st. The validity of a license issued by the municipal authority is for one year and required to be renewed every year.

The application for renewal of the license is to be done within 30 days from the date of its expiry. In case the renewal process is delayed, then it may attract fine depending upon the rules and regulations of the issuing authority.

Following are the documents that require to be submitted for renewal of the license:

Original copy of the trade License
Previous year Challans
Up to date property tax paid receipt

FAQ on Trade License

Q1. Who Issues Trade License?
The municipal authority of the particular state is the accountable body for the issuance of the trade license.

Q2 Who Need Trade License?
Every trader involved in a general trading activity within the national limits of any municipal corporation is needed to get a trade license. The class of trade license varies from state to state and is based on the nature of the business.

Q3. Do I need a Trade License to run a restaurant?
Yes, a Trade License is required irrespective of which line of business you are in. Any business that exchanges goods or services for money, has to have this license. In the case of a restaurant, you require a Food Establishment license.

Q4. When can I apply for a Trade License?
You can apply for it 30 days prior to the commencement of your business.