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TRADE LICENSE

WHAT IS TRADE LICENSE?

A trade license is a permission to carry on a specific trade or business

at the premises for which it has been issued. Trade license is the way

to regulate specific business from a particular locality. It is regulated

to ensure that the citizen is not adversely affected by Health Hazard

& Nuisance by the improper carrying of a trade. The trade license is

a means to ensure that the manner and locality in which the business

is being carried on is according to the relevant rules, standards and safety guidelines. The provision of trade license is laid down by the State government to monitor and regulate the trade within a city.

It is issued by the municipal corporation of the place where business

is located.

ELIGIBILITY

A trade license eligibility requires meeting the following criteria:

​

  • The applicant cannot possess any criminal records

  • He or she must be above 18 years of age

  • The pitched business proposal must be legally acceptable

WHO ISSUES A TRADE LICENSE?

The trade license check is done by the municipal corporation in the respective state government where the business  will have its registered office and also where the operations will be carried out. Different municipal corporations require the business to pass various checks, such as those regarding health and safety etc.

before the license is issued.

Documents required:

​The documents required for trade license vary depending on the kind of business intended to be set up - 

​

  • PAN card with incorporation certificate is required for firms, LLP’s and companies.

  • The most recent municipality property tax payment receipt.

  • Aadhar card is mandatory in cases of individuals.

  • NOC form from your neighbor next door.

  • Letter of consent or lease documents from the property owner.

  • An authorized layout plan of your trading building, showcasing all rooms.

  • Khata extract

  • Khata certificate

  • OC or occupancy certificate

  • Sanction plan

WHAT IS THE VALIDITY?

A trade license status issued remains valid for one year and thereafter must be renewed every year, generally,

between 1st January and 31st March every year. Renewal applications need to be made within 30 days of expiry

otherwise, a fresh license has to be applied for.


Renewals require:

  1. The last trade license

  2. Previous year’s challans

  3. Latest receipt of paid property tax

FAQ's

Q

If the license has expired long ago, how can I recover from this situation?

A

You need to provide the reason for this and pay the appropriate amount or due fees for it.

Q

If I don’t get my Trade license what will happen?

A

Running an unapproved Trade is an offense. The concerned authorities may seize or lock your
Trade business with or without prior intimation.

Q

Can a license be suspended and how can it happen?

A

In the case, that the license holder is violating the license conditions and disturbance to
neighbors or the environment.
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