What is Trade License

Every business organization needs a trade license from regulators, be it the municipal corporation or the state government. Trade License is a document that gives permission and certifies you to carry on a particular trade or business for which it is issued. It does not give ownership of property or permission for any other activity other than for which it is issued.

The municipal corporation authorizes license department and allots licenses in consultation with other specific consultative departments like Health, Engineering, Estate and others of the same type.

Our Company Registration package includes the following:

  • DSC for one director and DIN for up to three directors
  • Drafting of MoA & AoA
  • Registration fees and stamp duty
  • Company Incorporation Certificate

In perspective of this, it is essential for any business establishments to take primary licenses from the License Department before beginning manufacturing, exchange or storage of any activity. The application has to be filed with the Commissioner in the Corporation 30 days before the start of business. While filing, the business has to submit all the mandatory

Eligibility for a Trade License

Applicant must have attained the age of 18 years Applicant must not have any criminal records Businesses must be lawfully permissible The Trade License is issued by the licensing department of the municipal corporation in different departments like industries, engineering, health, etc. The government of India allows the license in a way to regulate in cities over the country. It permits by the way of letters or documents and certifies to carry on any business or trade wherever it is located. The issuance of the license differs from state to state depending on the local government agencies i.e. Municipals rules and regulations.

Why Trade License

In the last 40 years, trade license has been included in the country and is being governed by municipal corporation acts by the state governments. This benefits in ensuring that no one is individually affected by the nuisance and health hazard of any trade or business. It has been made mandatory by the government to carry out any particular business or trade in a particular area and to ensure that no one is carrying out any wrong business practices. This license creates a harmony in the society that all business is following relevant rules, guidelines and adopting the safety measures. This license was made necessary to make sure that the government can regulate different trade activities in the country. The core purpose of issuing this is to control the locations by restricting the people from executing some types of businesses from their home location to maintain the business environment. Important to regulate the trade to ensure that the citizens are not adversely affected by health hazards & nuisance due to improper carrying of a trade. A medium to ensure that the business is being carried in accordance with the relevant rules & safety guidelines. A Licensed business will have higher goodwill and will attract the customers and investors than an unregistered entity. It protects the owners upon some types of liability. Companies having better business practice attract different investment groups and other business organizations To do ethical business, practice the person can apply for getting Trade License Registration which assures the safety measures and guidelines. If a person does not get a Trade license as needed under the law and begins any business than a government can impose fine and penalty on such person. It can also result in the closing of such a business.

Types of Trade License

There are 3 types of trade licenses that a company or individual can apply for based on the type of trade or business they take forward.

  • Shop License

    This license is required for anyone who wants to open a shop. The shop can be of any retail type.

  • Industrial License

    This type of license is required for any company that wants to open a small or mid-sized industrial unit.

  • Food Establishment License

    Any establishment that plans on getting into the food and beverage industry requires this license. The license applies to restaurants, cafes, meat shops, bakeries and vegetable shops.

  • Complete our Simple Form

    You are required to fill your details in our simple questionnaire and submit documents.

  • Register Trade License

    You are required to give all the required information to Register Trade License.

  • Documents To Be Submitted

    • Lease documents/agreement in case of premises are on lease
    • ID Proof
    • Occupancy Certificate
    • Address Proof
    • Cancelled Cheque
    • Certificate of Incorporation
    • PAN of Entity

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TaxFillingIndia: Legal Information for Indian businesses

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Government Registrations

In India, you need a license for everything in business. Started a manufacturing business? You need a GST Registration and a Trade License. For a food business, you need an FSSAI license. Have employees? You need a Professional Tax registration and Shops & Establishments Act Registration. If that's not enough, you also need to file GST Returns and Professional Tax Returns.

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The worst way to approach business is to just get into new partnerships and arenas without examining consequences. By getting a lawyer to draft contracts or agreements with new vendors, employees and investors, you're ensuring that you have all the downsides covered. At TaxFillingIndia, we connect you to lawyers who will deliver complex documents, from shareholders' agreements and founders' agreements to terms of service/privacy policy and non-disclosure agreements, at a reasonable cost in a few days' time. Well-known startups, such as Holachef and Big Basket, have chosen to connect with a lawyer through us for their documentation work.

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It's not enough to have started a private limited company or an LLP. You need to comply with all the requirements of the Ministry of Corporate Affairs and Income Tax Act once you do. You need to inform them of every relevant change you make, whether it is adding a director, removing a partner or increasing authorised share capital. You also need to file annual returns and maintain your accounts. In the case of a private limited company, you even need them audited. At TaxFillingIndia, we facilitate all these services completely online. Which means you can engage a professional on retainer for the year and we'll ensure that all the formalities are completed for you while you focus on your business.

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