What is a Trade License?
As mandated by the Government of India, anyone who wishes to start a new business has to get a trade License.
It is certified permission for the business to sell its goods and services. Trade license is the way of doing business activities in legit way.
Eligibility Criteria for who can apply for Trade License
- Applicant age must be above the legal age to get a license.
- The business should be legal
- The applicant should have clean past records.
Types of Trade Licenses issued in India
Shop License: It is provided to shop owners like barber, crockery to carry out their business in a particular location.
Industry License: It is for the manufacturing industries at any level be it small, medium or large.
Food Establishment License: This license is for those who are in food businesses such as hotels, canteens, restaurants, etc.
Documents Required for Applying for Trade license
- Aadhaar Card
- Pan Card
- Application form of Trade license.
- Financial bank account details of the business.
- Receipt of filling property taxes.
- Consent Letter for the Property owner.
- NOC and signature of the neighbors.
- All the business-related details
How to Apply for Trade License in India?
- Visit the official online website of the license provider of your state.
- Go to the online registration option.
- Read and verify the terms and conditions of applying for a trade license.
- Necessary and valid information should be filled in the form.
- Submit your application.
Renewal Process of Trade License
Rules and regulations related to trade licenses are different from state to state. The validity of a trade license is 12 months. Within 30 days of license expiry, you have to apply for the renewal. On the late renewal, you will be fined. Additional documents required for renewal are-
- Previous original Trade License
- All updated tax receipts.
- Challan document from the previous year.
Frequently Asked Questions
Who can issue a Trade License?
Municipal Corporation of every state is eligible for providing a trade license.
How much time the does process take?
Generally, it takes 10 days for the complete process. Process time in rural areas is longer.
What happens if the license got rejected?
On the rejection, you can file the petition to the Standing Committee of Health to reconsider your application.
What happens if a person fails to complete trade license requirements before getting one?
One will get penalized if one is failed to fulfill all the requirements for the trade license.
What are the fees for the registration process of the trade license?
License Fees depends on the business and state you are applying in.
Why Trade license is Important?
It gives government assurance to the applicant. No one questions the functioning of your business if you have a trade license.
What are the advantages of a trade license?
Trade licenses will give you an upper hand over the unregistered competitor business.
The validity of Trade license?
It is valid for 1 year and then you have to apply for renewal.
In how many days of expiration have to apply for renewal?
In 30 days of the expiration of the previous license, you have to apply for renewal.
What is the penalty for late renewal?
You have to pay an extra 50% of the fees of trade license.
