A Trade License is a legal certificate/document issued by an authorized body (local municipality, in most cases) of the State Government. Applicant (a person or party) to start business operations in a specific location/ area. The enterprise that obtains the license must obey to the laid down rules and regulation of the authority. The trade license also affirms that the business is not practicing any unethical method that may potentially harm people living in the defined locality/area.
The application should be file with the designate commissioner of the authority at least 30 days before start the business. The applicant/ enterprise should submit the mandatory document during this time period.
To safeguard for the public at large against the health hazard and nuisance which a trade or business may cause. Trade license is a method to regulate the trade and to ensure compliance with rules and safety guidelines issued by government.
Trade license is issue by the authorized department of a municipal corporation in consultation with other specialized departments like fire brigade, health, engineering department having jurisdiction over the business.
It is issued by the licensing department of the municipal corporation in numerous departments like industries, engineering, health etc.
The government of India authorizes the license during a manner to control in cities across the country. It grants permission by the approach of letters or documents/certificates to hold on any business or trade wherever it's located. The provision of the license varies from state to state depending on the local government (Municipals) rule and regulations.
The applicant should have crossed the age of 18 years
The applicant should not have any criminal records
Business should be legally permissible.
Statically, trade licenses renewed in between 1st January to 31s? March in India. The validity of a license issued by the municipal authority is for a time period of 1 year and needed to be revived per annum.
The application for renewal of the license is to be created among thirty days from the date of its ending. just in case the renewal method is delayed, then it's going to attract fine depending upon the foundations and regulation of the provision authority.
Following the documents that require to be submitted for renewal of the license–
Original copy of the trade License
Previous year challans
Up to date property tax paid receipt.
Trade license can be benefits only if the business is run in the permitted area. I.e. a local commercial, commercial, Notified Commercial, Mixed Land use or Residential area with small shops of maximum 20 sq. on ground floor only.
Every trade engaged in a general trading activity within the territorial limits of any municipal corporation is required to obtain a trade license. The class of trade license is different from state to state and it is based on the nature of the business.
The objective of trade license is control business location by way of putting constraints on people from running certain types of business from their home to maintains the separate business environment and preserves locality environment.
While some states have made it mandatory to obtain a trade license, but in some states are optional. The kind of license and license fee also differ from state to state. Some states charge a monthly fee while other charge a % of the turnover.
Legal Entity: In order for a business to be consider as a legal entity it needs to have a trade license.
Manges Rules & Regulations: As state by the Municipal authority in which the business was located.
A Measure of Competence: With a trade license, a business will operate in an exceedingly industrial area, without concern of being shut down. This provides a show of confidence and competency, within the business and entrepreneur.
We need a trade license is that it proves that the activities to be carried out by our company are not going to present any type of health hazard. It also shows your company is not going to perform any action that would be considered a nuisance. The fee that we will have to pay to get a trade license is determined by the state you are applying for it in some cities have their own fees you will have to pay fees may be a set amount or they may be determined by your annual sales.
Traders who use the public highway to sell goods or service must have a street trading license to carry out from designated site or pitch and display goods in front of a shop. Trading from a vehicle kiosk or moveable stall which is on the valuation roll does not require a street traders license.
All companies require a business license, whether they sell online or from a brick and mortar front when you operate a business without the proper license you risk heavy fine. In addition, the city /state may require you to cease operation until you completed the required paperwork.
The whole procedure of obtaining a Trade License mustn't take over 15 days. At Startupefilings, we'll assist you get your trade license within a span of 10 days, from the time you apply. Yes, the govt has created it a compulsory requirement to renew this license per annum. Failing to try to therefore, will attract a penalty or a fine.
Yes, a Trade License is needed irrespective of that line of business you're in. Any business that exchanges goods or services for cash, needs to have this license. within the case of a restaurant, you need a Food Establishment license.
If for any reason you're denied a Trade License, you'll submit a petition to the committee with a copy of your denial letter.
Fill the Renewal Form. Pay the renewal charges with half fine.
Renewal time is from 1st Jan to 31st March of each year.
The cost to induce Trade Licenses is beginning At Rs. 4,799 Onwards +registration fees.