Trade License
A trade licence is a licence or certification needed for a person or firm to operate. Typically, the state authority in question issues this licence for a specific city limit. The holder of this licence will be able to start a business in a specific area. The applicant must make sure that the business is operated in accordance with the license’s requirements.
The applicant is not permitted to operate any other businesses with this licence than the one for which it was given. Aside from this, the licence does not give the holder any further legal rights to the property where the business is located or the ability to secure the property.
Why is an Trade License Important ?
Only a business can utilise this type of licence to conduct the specified activity. The government would only provide these licences to people so they could carry out specific activities inside a specific locality.
These licences are given out by the state or municipal governments of the respective municipalities to allow enterprises to operate. For a specific person, obtaining a trade licence is required.
This licence is a necessary and mandated document given out by a specific municipality. Businesses are allowed to conduct particular operations in a given location.
These licences are also given out so that customers may verify that the company is operating legally.
Criteria for Applying for a Trade License:-
The following requirements must be met in order for the applicant to be qualified to submit an application for the aforementioned licence:
1: The candidate or person must be a major. The applicant must therefore be older than 18 years old.
2: The applicant should be free of any criminal histories or convictions.
3:The applicant’s business cannot violate any current legal requirements.
How Do I apply for an Trade License?
The following prerequisites must be met, depending on the applicant’s location:
1: The applicant has to either apply online or offline for the trade license certification. For the online method, the applicant has to make an application and attach the prescribed documents. For the offline method (in-person) the applicant has to take all the documents to the relevant authority. With this, the applicant has to fill in the application form with the respective details for the license.
2: Different states might have different procedures for submitting a licence application depending on the applicant’s needs. However, the government has launched attempts to convert every state’s systems to electronic.
3: To submit an online trade licence application, the applicant must visit the specified website.
4: After that, a pop-up message with the terms and conditions for the trade licence will be displayed to the applicant.
5: To accept the terms and conditions, the applicant must click the accept button.
6: The applicant would fill out the relevant information and specifics regarding the trade licence in the following step of the procedure.
7: There is an unique mode in the online system for licence registration where document authentication can be done electronically. These must be completed by the applicant, together with any pertinent paperwork.
8: The applicant will receive written confirmation of the trade license’s successful registration after this process is complete.
9: Within eight to eleven working days, the applicant will obtain the licence after receiving confirmation of the same.
10: Typically, metropolitan regions move through the trade licence application procedure more quickly than rural locations.
Documents Required for Trade License
Below mentioned documents are required to obtain an TL:
Application for the License.
If the applicant is a corporate entity, then PAN card along with the respective company formation documents must be submitted.
For an individual applicant, documents such as Aadhaar Card is compulsory.
Property Tax Documents for the Property.
Lease agreement should be provided. Copies of the lease agreement.
Any form of Khata Extracts and Certificates.
Occupancy Documents.
No Objection Certificate from Neighbor in Case the business is located in a residential area.
Sanction Documents.
Renewal of Trade License
The following prerequisites must be met for the licence to be renewed:
These licences are typically renewed from January 1 through March 31 of the respective fiscal year.
This authorization is good for 12 months.
In order to obtain a trade licence, the applicant must do so in India.
Thirty days before to the certificate’s expiration, an application may be submitted.
The appropriate authority must receive documentation when the certificate is renewed.
Main Regulatory Authority or Body for Trade License
This type of licence is subject to regulation by the relevant state agency or municipal entity. In order to obtain the trade licence, the applicant must submit an application to the appropriate state authorities.
It is only permitted for governmental and municipal entities to grant this kind of licence. For instance, if a potential applicant needs to apply for a trade licence to open a restaurant in Bangalore, they must do it through the Bruhat Bangalore Mahanagara Palike. It would be necessary to submit this application online.
Therefore, an application must be made in accordance with the location of the applicant’s intended business launch. Applications for trade licences are accepted in more than 28 Indian states and union territories.
FAQ
How soon can I expect to get my trade licence?
Depending on the particular municipal corporation, this type of certification could take some time. The applicant will, however, get the certificate more quickly in a city than in a rural region.
What sanctions are imposed for failing to adhere to the license’s requirements?
The municipal corporation may impose the following fines:
• Cancellation of the licence if the conditions of the licence are not followed
• A fine for failing to adhere to the license’s requirements; or
• In addition to this, the local government may also initiate a criminal prosecution.
How can a trade license be renewed?
The applicant must submit an application for licence renewal to the relevant municipal authority. However, this has to be done a month before the licence expires.
Is there any fee for trade license ?
Yes, There are different type of trade license, fee is different for all of them and it is alose based on state
5 . If the license has lapsed long ago, how can I recover from such conditions?You need to provide the reason for this and pay the appropriate amount or due fees for it.