Must Knows

How to apply for or renew your trade licence?

[] Trade licence is a must to start a business or trade.

A trade licence is one of the essential documents to start a business or trade in a particular area.

You are reading: How to apply for or renew your trade licence?

Trade Licence: What is it?

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A trade licence is a document that gives the holder permission to start a particular trade or business in a given location. It ensures that the business or trade is carried out by following all the standards of safety issued by the state municipal corporation. It protects residents from health hazards. 

However, the licence does not allow the holder to conduct another trade or business than the one it was issued for. This licence does not give any kind of property ownership to the holder.

Who issues trade licences?

It is issued by the licensing department of the municipal corporation in various fields like industry, engineering, health, etc. The Government of India authorises the licence to regulate trade in cities across the country. It grants permission by way of letters or documents to carry any business or trade. The licence is issued across states according to the rules and regulations of the municipal corporations there.

Various kinds of trade licences

  • Industries licence: Small, medium and large-scale manufacturing factories.
  • Shop licence: Dangerous and offensive trades such as cracker manufacturing, fireworks, barber shop, candle manufacturing, laundry shop, etc.
  • Food establishment licence: Restaurants, Hotels, Canteens, Bakeries, Sale of meat, vegetables, etc.

Why is a trade licence needed?

  • Trade licences are regulated through municipal corporation acts by the state government.
  • This helps in making sure that no one is badly affected by the nuisances or health hazards from any business.
  • It is necessary to conduct a particular business only in a particular area that has been designated to the holder. 
  • The licence creates harmony in the society and makes sure that every business is following the rules and obeying the guidelines and safety measures. This licence was made compulsory so that the government could regulate all kinds of trade in the country.
  • The main objective of issuing a trade licence is to restrict people from conducting certain kinds of business in their hometown to maintain the perspective of business. 

How to be eligible for a trade licence?

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The eligibility conditions for a trade licence is as given below:

  • The applicant should be older than 18 years.
  • The applicant should not have any criminal records.
  • The business should be legally allowed.

Required documents

Documents required for applying for a trade licence are as follows: 

  • Address proof of the business
  • ID proof of applicant
  • Aadhaar card of the applicant
  • PAN card if the individual is applying for proprietorship, or PAN of the firm or company.
  • Memorandum of Association of it is a company
  • Certification of incorporating in case if companies
  • A latest municipal property tax receipt if the premises are owned, or a lease letter with the consent from the owner
  • NOC of the neighbours (property owners nearby)
  • Certified layout plan of the office

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Category: Must Knows

Debora Berti

Università degli Studi di Firenze, IT

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