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.
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.
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.
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.
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.
The applicants must furnish the following documents for a trade license:
The applicant for a trade license must visit the Citizen Facilitation Centre (CFC), located nearest to the proposed business establishment, and submit the completed application form after obtaining it from the same venue. The required documents and fee must support the application.
After CFC receives the application, the same is forwarded to the License Department. The application is then assigned and processed by the Department Head of the License Department at the concerned Ward. The Certificate is issued to the applicant after inspection of the site and approval of the application by the relevant authorities.
The Certificate is usually issued within a week of filing it, though incompletion or errors in the application could force a delay.
The applicant may renew their license by the same procedure as above, i.e., applying to the CFC. The following documents must be submitted along with the application form:
Denial of trade license prohibits the very functioning of the business, though appeals can be made to the standing committee against the rejected application by delivering the denial letter.