Trade License Certificate and Document Online [2022]- Onfiling

Trade License





What is a Trade Licence?

A trade license is simply a license or a certificate required for a business or individual to carry out operations. Usually, this license is provided by the respective state government for a particular municipal limit. This license will allow the applicant to open a business in a particular region. The applicant will have to ensure that the business is carried out as per the requirements of the license. The license does not allow the individual to secure the property or any form of legal entitlement of the property where the business is carried on.

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a. The applicant must have crossed the age of 18 years b. The applicant must not have any criminal records c. Business must be legally permissible.
Trade license ensures that business carried within the area is consistent with the rules, standards and safety guidelines. You just cannot setup a mini manufacturing unit in your own residence. It is governed by a set of rules that licensee needs to abide by and violations can lead to the cancellation of license.
In the last forty years, trade license has been introduced within the country and is being regulated according to the municipal corporation acts by the state governments. This helps in ensuring that any individual is not severally affected by nuisance and health hazard of any trade or business. Govt. has made necessary steps for functioning out particular business or trade in a particular area and to make sure that nobody is involved in any unethical business practices. This license creates a harmony within the society that each and every business is following relevant rules, guidelines and obeying the safety guidelines. This license was made obligatory to make sure that the government can regulate various trade activities in the country. The sole objective of issuing this license is to control and regulate the locations by restricting the people from executing certain kinds of businesses from their home location for maintenance of the business environment and locality environment.
A. Industries license: small, medium and large scale manufacturing factories B. Shop license: Dangerous and Offensive trades like a sale of firewood, cracker manufacturer, candle manufacturer, barber shop, dhobi shop etc. C. Food establishment license: Restaurants, hotels, food stall, canteen, the sale of meat & vegetables, bakeries etc.
Statically, trade licenses in India are renewed in between January 1st to March 31st. It is for one year and required renewal on yearly basis. The application for renewal is to be made within thirty days from the date of its expiry. If the process is delayed, then it may attract fine depending upon the rules and regulation of the issuing authority. Following are the documents that need to be submitted for renewal of the license– a. Original copy of the trade License; b. Previous year challans; c. Up to date property tax paid receipt.
Documents can differ from municipality to municipality but I will be sharing a general list of documents. Individual’s application - duly filled up forms with KYC documents (photo id and address proof) of all individuals and proof of occupancy of business: • Tax bill is required if you are owner of the flat. • Rent agreement is required if you are on a rented flat. • If relative granted rent free accommodation like the flat is in your father’s name and you want trade license in your name then a consent letter from the owner along with the tax bill. In case of companies following documents are necessary: • Memorandum/Articles of Association • Declaration in Form No. 32 • Form No. 18

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