Trade License is defined as a certificate/document which provides permission to perform on a specific trade or business for which it’s issued. It doesn't confer ownership of property or permission for any other activity other than for which it is issued. Some authorized departments by the municipal corporations are known as License departments which issue licenses by consulting with other specialized consultative departments like Fire Brigade, Health, Engineering, Estate, and others. According to this, it’s important for any business establishment to take fundamental licenses from the License Department before manufacturing, exchange or storage of any activity/commodity. It is necessary that the business establishment must receive the application within 3 months before the commencement of the activity and 30 days after the commencement of the business activity.
What are the features of a trade license?
Features of Trade License are as follows:
- It helps in ensuring that no one should be affected by health hazards of any trade and business.
- It prohibits unethical business practices.
- Trade creates a balance in the society that every business is following rules and guidelines as prescribed by the Government.
- The government made this license mandatory to regulate the trade activities in the country.
What are the documents required for a trade license?
- Address Proof of the premises, in case of premises on lease the lease documents/agreement of lease is required.
- Identity proof
- Occupancy Certificate
- Cancelled cheque
- PAN card
- Certificate of Incorporation
What are the different types of Trade License?
Three different types of trade license
Shop license is needed for those who would like to open a shop or an establishment to sell the products.
Industrial license is required for a company who is planning to open a small or mid-sized industrial unit.
Food Establishment License
Any establishment that plans for the food and beverage industry needs this license.This license applies to restaurants, cafes, meat shops, bakeries and vegetable shops.
What is the registration process of a trade license?
The registration process of any trade license may differ from state to state and license to license. The process is as follows:
An application to the appropriate authorities, the state government, or the local corporation is required to get a trade license registration. The entire procedure may differ from one state to another.
In certain states, a trade license is only provided to a person once the competent authorities have verified his or her identity.
3. Time required for processing
The trade licence registration takes 10-15 days to process, and once approved, the trade licence registration may be obtained online.