Trade License



A trade license/certificate is a document/certificate granting permission to an applicant (person looking to start a business) in order to operate a specific trade or business in a certain area/location. The license is not valid for any other trades or businesses than the one it was issued. The license also does not transfer any property ownership to its holder.

A Trade License is a permit or license issued by a municipal corporation that allows you to operate a specific business at a given address. The trade license ensures that citizens are not negatively affected by nuisance and health hazards caused by improperly carrying out trade.


Eligibility to a Trade License
1. The applicant must be over 18 years old.
2. Legally permissible business type.

The following Documentation is required to apply for a trade license:

• Attestation of business

• Photo ID of the applicant

• Aadhaar card

• PAN of an individual in the case of sole proprietorship or PAN for the company

• Memorandum of Association in the case of Companies

• Certificate of incorporation in the case of Companies

• In the case of premises owned, a lease document or consent letter from the owner.

• NOC of neighbours (nearby property owner)

• A certified layout plan for the office



Who issues a Trade License?

The various municipal departments that issue the trade licenses, such as engineering, health, and others, issue the trade license.
India's government authorizes licenses to be issued in order to regulate cities throughout the country. There are different licensing procedures in each state, depending on the rules and regulations of local government agencies (Municipals).

There are many types of trade license

1.Industries License: Manufacturing factories of small, medium and large size.

2. Shop License: Dangerous or offensive trades such as the sale of firewood, cracker manufacturers, candle manufacturers, barber shops, dhobi shops, etc.
3. License for food establishments: Restaurants, hotels and food stalls.


All food serving premises: Hotels, restaurants, canteens and malls.

Clubs. Bakeries and confectionery shops.

Snack shops. Retailers and traders.

Daily needs stores.

Service Trades: Cyber cafes, barbershops, timber shops, and all other small to medium-sized industries.

Manufacturing Units/ Industries: All Manufacturing and Processing units, Small, Medium and Large scale industries, Cafes.

What is the validity period of a trade license?

A Trade License issued to a business entity is valid for one year. The same license must be renewed in order to continue business activities after one year.

How do I renew my trade license in India?

It is necessary to renew the Trade License on an annual basis. This can only be done after you apply for renewal. The license renewal period is usually from January 1st to March 31st each year.
The renewal application must be submitted no later than thirty days prior to the expiry date. Late fees of 50 percent may be imposed on trade license holders if there is a delay in submitting the application.

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