Trade License Online Application and Renewal Process

Trade License Online Application and Renewal Process

Trade License and its Renewal Process


What is a Trade License?

A Trade License is a legal document issued by the local municipality that provides authorization to a person, or a party, to commence business operations. It is only granted if the business adheres to all the rules and regulations laid down by the corporation, and safety authorities, of the respective state in which the business is located.

The application is filed with the commissioner in the corporation 30 days prior to the commencement of the business. During this process, the business has to submit all the mandatory documents.


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.

Who can issue a Trade license?

It is issued by the licensing department of the municipal corporation in various departments like industries, engineering, health etc.

The government of India authorizes the license in a manner to regulate in cities across the country. It grants permission by the way of letters or documents/certificates to carry on any business or trade where it is located. The issuance of the license varies from state to state depending on the local government agencies (Municipals) rule and regulations.


Eligibility for a Trade license

a. The applicant must have crossed the age of 18 years

b. The applicant must not have any criminal records

c. Business must be legally permissible.

What Are The Different Types of Trade License?

There are three types of trade licenses that a company or individual can apply for based on the type of trade or business that is carried out.

Shop License
This type of license is required for those who would like to open a shop or an establishment to sell goods or services.

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

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

Documents need to be submitted for Trade License

In order to apply for a trade license, the applicant is required to make an application and submit the same to the concerned Municipal Corporation along with all the necessary documents.

There are different documents that required to be provided depending on the type of business intended to carry on.

a. Application in the prescribed Form

b. If the applicant is any Firm, LLP or a Company, their PAN Card, along with the incorporation certificate.

c. In the case of an individual applicant, his/her Aadhaar Card is mandatory.

d. Latest Municipality Property Tax Payment Receipt.

e. Lease documents or consent letter from the owner of the property.

f. NOC from your immediate neighbor

g. A certified layout plan of your trade building showing the business, working or washing or resting areas


Trade license Renewal 

Statically, trade licenses in India are renewed in between January 1st to March 31st. The validity of a license issued by the municipal authority is for a period of one year and required to be renewed every year.

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

Following are the documents that need to be submitted for renewal of the license–

a. Original copy of the trade License;

b. Previous year challans;

c. Up to date property tax paid receipt.


Penal provisions

There are various other provisions, rules, and regulations that are required to be followed by the registered person. In case of failure to comply with the registration requirements of trade license and commencing any trade activity before the issuance of this license, the person in the default will be liable to pay prescribed penalty. Furthermore, legal action can also be taken against the defaulter.

FAQs

Q. How long does it take to get a trade certificate ?

In general, it takes 7-10 days time to process the application of Trade license in metro cities. However, in other small cities and rural areas, it takes longer.

Q. Is it compulsory to renew a trade certificate ?

Yes, the government has made it a mandatory requirement to renew this license every year. Failing to do so, can attract a penalty or a fine.

Q. Do I need a Trade license to run a trade 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.

Q. What happens if my trade license is denied ?

If for any reason you are denied a Trade License, you can submit a petition to the Standing Committee with a copy of your denial letter.

For more information on this visit www.taxaj.com


Posted by Pooja

Team Taxaj


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