Trade License

A trade license is a legal document of a municipality that gives authorization to an individual or party to commence business operations. Trade license is granted only if the business complies with all rules and regulations laid down by the corporation and the security officers of the particular state. The corporation has to apply to the commissioner 30 days before starting the business. At the time of filing, the business has to submit all the mandatory documents.

Different Types of Trade Licenses

There are three types of trade licenses that a company or individual can apply based on the trade or business they operate:

Shop license

  • This license is required for the person who wants to open the shop. The shop can be of any retail type.

    Industrial license

    Such a license is required for any company that wants to open a small or medium-sized industrial unit.

    Food establishment license

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

Documents needed for Trade License

While applying for a trade license, one has to show the following documents:

  • Form 353 is duly filled in.
  • Consent letter from owner or neighbour.
  • Survey map of your property.
  • Tax receipts.
  • A blueprint of the premises provokes business deals with explosives, wood and dangerous goods.
  • Other documents that ward officers may ask for at the time of registration.

  • For renewal, you need the required documents.
    In India, business license renewal takes place between 1 January to 1 March. While applying, a person should show the following documents:
  • Original Trade License.
  • All tax receipts, showing up to date payment.
  • Past payment challans.

  • Procedure for Trade Registration

    Once the type of trade license is finalized, Form 353 should be filled in with all the required details. All the above documents have to be submitted to the ward office of the local municipality of the area.

    After the application is filed, if more information is required, officers can ask for additional details. If all the details are found to be satisfactory, a trade license will be issued. The validity of a trade license is one year and the purchase of one takes about 2-3 weeks. It will be sent via courier.

    Non Compliance

    A trade license is a compulsory license for each business. Therefore, if a business owner fails to obtain one before starting the business, he is liable to pay a fine or may face legal retaliation.

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