A Trade License certificate is a document from the municipality that grants permission to a company to carry on trade or business.
The license is given if the business complies with certain rules and regulations laid down by the corporation and safety authorities of the state. The application should be made 30 days prior to commencement of business to a Commissioner in the Corporation. When applying the business has to submit certain documents.
Procedure for Trade Registration
Once you know the type of trade license you need, you should fill up Application form with all required details and submit the required documents to the ward office of your local municipality.
After you apply, the officer may ask you for additional details, in case he needs more information about your business. If he is satisfied with all the details already sent, he will issue the trade license to you.
A trade license is valid for a year and it takes about 2-3 weeks to get. You will receive your trade license via online or hardcopy. It is suggested that you make a couple of copies of the license.
Non Compliance
It is mandatory for every business to have a trade license. If anyone fails to get one before starting a business, he or she is liable to pay a fine or be penalised.
Documents need to be submitted for Trade License
In order to apply for a trade license, the applicant is required to make an application and submit the same to the concerned Municipal Corporation along with all the necessary documents.
There are different documents that are required to be provided depending on the type of business intended to carry on.
These are-
a. Application in the prescribed Form
b. If the applicant is any Firm, LLP or a Company, their PAN Card, along with the incorporation certificate
c. In the case of an individual applicant, his/her Aadhaar Card is mandatory
d. Latest Municipality Property Tax Payment Receipt
e. Lease documents or consent letters from the owner of the property
f. NOC from your immediate neighbor
g. A certified layout plan of your trade building showing the business, working or washing or resting areas
h. Katha extracts
i. Katha certificate
j.Sanction plan
k. Occupancy certificate (OC)
Processing Time
In general, it takes 7-10 days time to process the application of Trade license in metro cities. However, in other small cities and rural areas, it takes longer.
Trade license Renewal
The validity of a license issued by the municipal authority is for a period of one year and required to be renewed every year.
The application for renewal of the license is to 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–
a. Original copy of the trade License;
b. Previous year challans;
c. Up to date property tax paid receipt.
d. Current Professional Tax Certificate