Trade License

Trade License - Process, Procedure, Document Required, Fees, Eligibility, Duration

A trade license is a document or certificate that authorizes an applicant to start a specific trade or business in a particular place or territory. To start a business within a state, corporation, or municipality, the involved entity will need a trade license from the concerned government. The applicant must apply to the competent municipal authorities to get a trading license.

The state municipal corporations issue the trade license. The procedure for obtaining a license differs from state to state. The trade license ensures that the business or trade is carried out following all of the state municipal corporation's safety regulations. A trade license can only be issued at commercial establishments where the government has not placed any restrictions on the conduct of business. The application for trade registration must be submitted within 30 days after starting a business. The holder of the license is not permitted to engage in any other trade or business than that for which it has been issued.

To whom is trade license given?

Small, medium, and large-scale manufacturing factories, firewood vendors, cracker manufacturers, candle manufacturers, barber shops, restaurants, hotels, food stalls, canteens, and other businesses are granted trade licenses.

Advantages of acquiring a trade license

There are several advantages of acquiring a trade license. Know them below:

A trade license is required for a business to be deemed a legal entity.
The license ensures that no commercial activity takes place in a residential area that is harmful to the public's health.
A business can operate in a commercial location without fear of being shut down if it has a trade license.

The organization gains the status of a law-abiding institution devoted to ethical business operation by obtaining a trade license.
Any entity can obtain loans from the concerned financial institutions under the effect of the trade license.
Trade license promotes societal harmony by ensuring that all businesses follow necessary regulations, norms, and safety measures.

Trade License Frequently Asked Questions

Who is eligible for getting a trade license?

The following are eligible for trade license: • To be eligible for a trade license, one must be at least 18 years old. • The business must be permitted legally. • A person who has been convicted of a crime is not eligible to apply for a trade license.

What is the validity period of trade license?

A trade license is good for one year. Every year, the license must be renewed. The renewal application must be submitted within 30 days of the expiration date. The application for renewal of the trade license should be made to the commissioner in the municipal corporation.

What is the penalty for violating rules?

Those entities who have received a trade license must adhere to the rules and regulations of the concerned authorities. They will face fines for violating the regulations. If the applicant fails to renew his license within the specified time, they will be penalized. The trade license for the business might be revoked if the business activity is dangerous to the neighborhood or surroundings.

What are the documents required for trade license registration?

The following are the documents required for trade license registration: • PAN Card • Address proof • ID proof • Incorporation certificate for the firm, LLP, or company • Aadhar card • A certified layout design of a trade building exhibiting the business • Recent municipality property tax payment receipt • Lease paperwork or consent letters from the property owner • Immediate neighbor’s NOC

How to apply for Trade License?

Upon submission of the application, a trade license is normally provided within 7-15 days. Credence Corporate Solutions can help you obtain a trade license for your business. We have a group of trained professionals who will complete the process of application filing, submit the form and ensure that you receive the trade license as early as possible.

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Get the latest company news, corporate information, and more on Credence Corporate Solutions. View this section for the recent information on Company Registration, Licenses, GST, Income Tax, Trademark, Product Mark and other topics. Get to chat with our business experts, read business articles, and stay up-to-date on the newest business news.

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