There are many documents which are required for compliances needed to be fulfilled while starting a business. A trade Licence is one such important document which is required for running a business or a trade. It allows an individual or entity to carry on business or trade activity in a particular local municipality.
What is a Trade Licence?
A Trade Licence is a certificate which gives permission to the applicant to start a particular trade/business in a specific area. The Municipal corporation in state issues trade licence to the applicants. A trade Licence ensures that the business is conducted by adhering all the standards of safety which is issued by State Municipal Corporation. It protects the individuals from any health hazards. All the businesses which are covered under the State Municipal corporation Act in which they are located they must apply for trade licence.
Although, this licence does not allows the holder to conduct any other trade or business other than it is issued for. Also, this does not provide any kind of ownership to the holder.
Why Trade Licence is required ?
Trade Licence was introduced 40 years ago in India. The local Municipal acts regulate licences. It also helps in ensuring that no one is affected by the health hazard and nuisances of the trade or business.
The state governments make it mandatory to acquire a licence for ensuring that no one is carrying out unethical business practice. It provides the government to regulate different trade activities. It creates harmony in the society by ensuring that all businesses are following the proper rules, guidelines and the required safety measures.
What are the Main Objectives of a Trade Licence?
Following are main objectives of Licence:
- For regulating and monitoring the activities of businesses in a particular area.
- For ensuring that anti competitive practices are being followed by any businesses within a particular locality.
- For ensuring that businesses follow the corporation or the government compliance.
- To keep a check that a business is not breaching laws or creating nuisance in society.
- For regulating the use of hazardous substances which are used i business and ensuring it does not affect the people or the environment.
- For ensuring that the business is using environment friendly substances and protect the environment.
- Ensuring that businesses took necessary precautions when conducting the business.
Who Issues Trade Licence?
Its issued by the Municipal Corporation’s Licence department. It gives the permission by way of providing a certificate to carry out any business or trade. The issuance of licence differs from state to state which depends on the local municipal agency.
Different Categories
- Shop Licence:- Dangerous Trades, barber shop, laundry, computer shop, clinics, medical store, etc.
- Food Establishment Licence:- Hotels, Canteen, Restaurants, bakeries, Shopping Malls, Movie theatres, etc.
- Industries Licence : Small, Medium and Large Scale manufacturing industries.
Eligibility to Apply
- 18 or 18+ years of age
- Not having any criminal record
- Legally permissible business
How to Apply for a Trade Licence?
Applicants could apply for Licence Online and Offline. The local municipal corporation also requires the application for the business to be submitted. Generally, it must be applied before a month of starting the business, while in some it could be 30 days of commencement of the Business. It differs according to the respective Local municipal corporation.
Online Application for a trade Licence:
1: Visit the local municipal corporation website.
2: Click on ‘Citizen online services’ and select the ‘Trade Licence’ option.
3: Click on ‘Apply for Trade Licence’.
4: Fill out the registration.
5: Upload the required documents and submit.
6: Authorities will verify, application and documents.
7: Unique application number will be generated.
8: Visit the portal and pay the fee.
Documents Required to Apply for a Licence
- Address proof
- Applicants ID proof
- Aadhar card
- PAN Card
- Memorandum of Association (MOA), Articles of Association (AOA) and Certificate of Incorporation
- Certificate of registration in case of partnership firm
- Latest Municipal Property Tax Receipt
Licence Fees
The fees differs from state to state as its issued from the government agencies of the respective state. The Licence fees is based according to the rules and regulations of that particular state.
Licence Processing Time
Generally it takes 7-15 days in metropolitan cities after the payment of the fees. In rural and small cities it could take more time of upto 30 days.
Licence Status
Applicants can see the status of their application on the Local Municipal Corporation website. Also this process differs in different states.
Trade Licence Renewal Online
Earlier these were the step :-
The online Licence renewal process is as follows:
1: Visit the Local municipal corporation website.
2: Click on ‘Citizen Services’.
3: Click on ‘Trade Licence’ and ‘Renewal of Trade Licence’.
4: Enter the number. The detail of Business will appear on screen.
5: Check the details and click on ‘Confirm’.
6: Upload the required documents and click ‘Continue’.
7: Pay the fees and click ‘Apply’.
Documents required:
- Original copy of Licence.
- Previous year challan.
- Up-to-date property tax paid receipt.
