What is a Trade Licence?
A trade licence is a document/certificate that gives the permission to a person seeking to commence a particular trade or business in a particular area/location. You must make the application within 30 days of commencement of business.
Documents Required for Trade License
You require the following documents to obtain a Trade License:
- Application in the prescribed Form
- If the applicant is any Firm, LLP or a Company, then their PAN Card, along with the incorporation certificate.
- In the case of an individual applicant, then his/her Aadhaar Card is mandatory.
- Latest Municipality Property Tax Payment Receipt.
- Lease documents or consent letter from the owner of the property.
- NOC from your immediate neighbor
- A certified layout plan of your trade building showing the business, working or washing or resting areas
- Katha extracts
- Katha certificate
- Sanction plan
- Occupancy certificate (OC)
Process for Obtaining Trade Licence
Refer to the following steps to obtain a Trade license
- Navigate to the respective Municipal Corporation Website
Applicant can file an application for licensing in the respective Municipal Corporation. Firstly, select ‘Citizen Services’ option from the menu on the respective website.
- Sign up
Subsequently, click on to ‘Apply for Online Licenses’, here the applicant can register and fill up all the details such as name, emai ID, mobile number etc. Once the applicant submits the details, the system generates a User ID and Password.
- Login and Fill Form
Login with the ID and Password to Apply for New License. All information mentioned in the form such as Type of business, NOC, tax details of your Proper tax must be filled.
- Submit form and Upload Documents
Once it is filled, click on ‘submit’ button and upload the required documents. The Application and Documents are then verified by the Urban Local Bodies officials.
- Unique Application Number
Once verified, an Unique Application Number will be automatically generated.
- Payment of Fees
The page will redirect to payment window. Then, the prescribed fees has to be paid by clicking on to ‘Make payment’. You will get to choose different modes of trade license payment online.
- Issue of License number
Once the fee is paid, the license number will be issued.
Trade License Payment
The fee prescribed for obtaining an online Trade Licence varies from state to state. As a result, it is determined based on the rules and regulations prevailing in that state.
In some states, the fee charged is on an annual basis. Whereas, in other states, it is based on the percentage of annual business turnover.
Trade license Renewal
Statically, the renewal of trade licenses in India happens in between January 1st to March 31st. The validity of a license issued by the municipal authority is for a period of one year and requires renewal every year.
The application for renewal of the trade licence must be made within thirty days from the date of its expiry. In case the renewal 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–
- Original copy of the trade License;
- Previous year challans;
- Up to date property tax paid receipt.
FAQs
You need to provide the reason for this and pay the appropriate amount or due fees for it.
If for any reason you are denied a Trade License, you can submit a petition to the Standing Committee with a copy of your denial letter.
The basic difference between Trade License and Company Registrations is you require a company registration to start a new entity for carrying a business whereas you require a Trade License for the existing entity to carry the business activity.
Trade License is a license or permission issued by a municipal corporation granting permission to carry on a particular business at a particular address. It ensures that the citizens are not adversely affected by health hazard and nuisance by the improper carrying of trade.