Trade License Registration

Trade License

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A Trade License is a legal document from the municipality that provides authorization to a person or a party to commence business operations. Trade license is given only if the business adheres to all the rules and regulations laid down by the corporation and safety authorities of the particular state.

The application has to be filed with the Commissioner in the Corporation 30 days prior to commencement of business. While filing, the business has to submit all the mandatory documents.

Who Can Apply for Trade License

Anyone can apply for a trade license except those who:

• Are under the age of 18
• Have criminal records against them

The Different Types of Trade License

There are three types of trade licenses that a company or individual can apply for based on the type of trade or business they carry out.

SHOP LICENSE

This license is needed for anyone who wants to open a shop. The shop can be of any retail type.

INDUSTRIAL LICENSE

This type of license is needed for any company that wants to open an small or mid-sized industrial unit.

FOOD ESTABLISHMENT LICENSE

Any establishment that plans on getting into the food and beverage industry needs this license. The license applies to restaurants, cafes, meat shops, bakeries and vegetable shops.

Documents Needed

When applying for a trade license, one need to show the following documents:

• Form 353 duly filled
• A letter of consent from owner or neighbor
• The city survey map of your property
• Tax receipts
• A blueprint of the premises incase the business deals with explosives, timber and dangerous goods.
• Other documents that the Ward Officer may demand at the time of registration.

FOR RENEWAL, YOU NEED THE FOLLOWING DOCUMENTS

In India, trade license renewals take place between January 1st to March 1st. While applying, a person should show the following documents:
• The original trade license
• All tax receipts, showing up to date payments
• Past payment challans

Procedure for Trade Registration

Once the type of trade license is finalized, the Form 353 has to be duly filled with all the required details. All the above-mentioned documents have to be submitted to the ward office of the area’s local municipality.

After the application is filed, if more information is needed the authorities may demand for addition details. If all the details are found satisfactory, the trade license will be issued. The validity of the trade license is one year and it takes about 2-3 weeks to procure one. It will be sent through courier.

NON COMPLIANCE

Trade license is the mandatory license for every business. Hence, if any business owner fails to get one before starting a business, he or she is liable to pay a fine or may face legal repercussion.