Trade License is a license or permission issued by municipal corporation granting permission to carry on a particular business at a particular address. It ensures that the citizens are not adversely affected by health hazard and nuisance by the improper carrying of trade.

  • This is to ensure the public safety of business
  • Mandatory for certain activities
  • Government fee varies based on activities
  • Governed by municipal corporation of the area.




Trade License

A place of business within a State, Corporation or Municipality will require a trade license from the concerned State Government or Corporation or Municipality for operating. Rules and regulations pertaining to trade license varies from state to state. Hence, to obtain trade license, the applicant must first understand the jurisdiction under which he/she is operating the business and the applicable Act.

In most states, the application for grant or renewal of license will be made to a Commissioner in the Corporation. The application must be made within 30 days of starting to operate a business. On applying with the required information and documents, the concerned Officer will ensure that the business is suitable for the purpose used, there is no possibility of danger or nuisance for any person around and issue the license. Trade license would normally be issued within a period of 7-15 days on submission of application. IndiaFilings can help you obtain trade license for your business. Get in touch with an IndiaFilings Advisor to know more about the rules and regulations applicable for your business and begin the process of applying for a trade license.

Documents Required For Trade License

  1. Pan Card of the establishment in case of company, LLP or Firm.
  2. Canceled Cheque and bank statement of the establishment.

  3. Certificate of Incorporation, MOA and AOA of the company or LLP/ Partnership Agreement as the case may be.
  4. Premises Proof of the establishment in the form of Sale Deed, Electricity Bill/water bill and NOC from owner.
  5. Colour Photograph, Pan card and ID Proof and Address Proof of all Directors/ Partners.
  6. Front-Facia Photograph of the establishment with Display of goods traded from the premises.
  7. Site/Key Plan Showing the area under the occupation of the applicant earmarking the neighbourhood of the site.

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Application

Trade license application must be made to the concerned State Government or Corporation or Municipality. The jurisdiction and procedure for application would differ based on the State regulations.

Processing Time

The normal processing time for trade application is 10 – 15 days subject to Government processing time. The certificate can be downloaded online after approval.

Verification

In some State, the trade license would be issued only after in-person verification from the concerned authorities. However, many states have also done away with the requirement.

Validity

In most states, trade licenses are issued with a validity of 1 year. Trade license can be renewed at the end of each year by paying the renewal fee.