A Trade License is a legal certificate/document granted by a State Government authorised authority It is a document that allows an applicant to start a specific business or trade in a given area. The candidate must be at least 18 years old, and his or her business must be legal. The company that acquires the licence must follow all of the authority's rules and regulations. The trade licence also confirms that the company is not using any unethical practises that could endanger residents in the defined area. The application should be submitted to the authority's authorised commissioner at least 30 days prior to the start of the business.

Benefits of Trade License

Organizes and manages rules and regulations: According to the municipality where the business is located.

Entity with Legal Status : A trade licence is required in order for a business to be recognized as a legal entity.

Competence Evaluation : A business can operate in a commercial location without fear of being shut down if it has a trade licence. This demonstrates the business's and entrepreneur's confidence and expertise.

Types of Trade License

Industrial License : A business that intends to open a small or mid-sized industrial unit will need this type of licence.

Shop License : Those who want to operate a business or an establishment to sell goods or services will need this form of licence.

Food establishment license : Restaurants, cafes, butcher markets, bakeries, vegetable markets, and other businesses in the food and beverage industry are all covered by this licence.

Required documents for Trade License

  • A letter of permission from the business owner or a neighbour.
  • Income tax receipts
  • Filled out Form 353
  • The commercial property's city survey map.
  • If the business deals with explosives, lumber, or dangerous commodities, a blueprint of the facility is required.
  • At the time of registration, the Municipal Ward Officer may ask for further documentation.

Documents required to renew a Trade License

Every year, between January 1 and March 1, India renews its trade licences. A person should produce the following documents for verification while applying:/p>

  • Challans from previous payments
  • The first business licence
  • All tax receipts, reflecting all payments made to date


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