A trade license is a document that authorizes a resident to pursue a trade or business on a particular premise. It is issued in consultation with other specialized departments like fire brigade, health; engineering; estate; and the likes to ensure that the citizens aren’t affected by health hazards and nuisance caused by the improper conduct of trade. The License Department of the Municipal Corporation of Greater Mumbai is vested with administrative powers regarding trade licenses in India’s financial capital. This article looks at the procedure for obtaining a trade license in Mumbai.

Need for the Document

The nuisance brought forth by the improper and illegal conduct of trade. A trade license, regulated by the different state governments, is issued to certify that the business in question is being conducted by the relevant rules, standards, and safety guidelines, thereby ensuring that the residents are not affected by health hazards. Any business or marketing pursued without obtaining the same could be slapped with penalties and prosecution of the highest order.

Designated Custodians

A trade license applies to every trader engaged in a general trading activity within the periphery of any municipal corporation. The class of trade license varies from one state to another, the likes of which are determined by the nature of the business pursued.

Whom to Contact?

Trade licenses are disseminated to the residents by the authorized department of a municipal corporation in consultation with other specialized departments like fire brigade, health; engineering; estate; and the likes it had jurisdiction over the business.

Premise of Operation

It is now implicit that a trade license is issued to facilitate the performance of a trade or business in a particular premise, which could be a commercial, local commercial, notified commercial, mixed land use, or residential area. Regulations convey that the concerned establishment must be constructed in fewer than 20 meters square feet.

Documents Required

The applicants must furnish the following documents for a trade license:

• Proof of possession of the establishment could be a rent receipt, society maintenance receipt, registered purchase agreement, leave license agreement, or an indemnity bond (on a stamp paper of Rs. 500). The document must be supported by relevant proofs such as electricity bills, telephone bills, etc.
• Proof of authenticity of premises.
• Proof of fire safety measures. It could be in the form of a NOC from the CFO (other than a codified requirement), Fire (Codified), following Appendix A and Appendix B. These documents (any of these would suffice) should be supported by an undertaking from the party confirming their compliance with the stated requirements.
• Other licenses, the likes of which could be Bombay Shops and Establishment; License u/s 394 of the Mumbai Corporation Act, 1888, or a permit u/s 90 of the Mumbai Corporation Act, 1888.
• No Objection Certificate (NOC) from the Commissioner of Police.
• List of ancillary commodities.
• PAN Card of the establishment (for companies, LLP, or firms).
• Canceled Cheque leaf of the establishment.
• Bank statement of the establishment.
• Certificate of Incorporation.
• Memorandum of Association.
• Articles of Association.
• Partnership Deed (for Partnership firms and LLPs).
• A colored photograph of the applicant.
• Pan Card of the applicant.
• Proof of identity of the Directors and Partners of the entity and the evidence of identity and address.
• Front-faced photograph of the entity (in a way that depicts the goods traded on the premises).
• Site/critical plan of the locality of the establishment earmarking the neighborhood of the site.