Trade License

Get your trading license in few days and without stress. GarudaMudra makes sure that your app perfectly meets the local regulations, whatever it be, store, restaurant, factory, or anything else like clean-up.

1. Easy & Simple Online Application
2. Complete Documentation & Filing Support, If You Need it
3. Seek Expertise on License Type & Local Ordinances
4. Help with renewals, changes and compliance checks
5. Close Liaison with Local Authorities

What is a Trade License?

Trade License is a certificate/document which is provided by the government and that allows a holder to commence a particular business in a particular segment/area. This license gives you the lawful right to operate a particular type of business out of an indicated location.

It is important to note that:

1. This is to let you know you don’t hold the place where you have your business on a trade licence.
2. This just means that whatever it is you ended up choosing to do, you are allowed to do it, legally, at this spot.
3. The trade license is typically all about having your business in line with local health, safety, and zoning laws. The system exists by design to shield the public from the dangers or inconvenience that could result from running a business.

The Necessity of a Trade License

1. Besides being a legal requirement, there are several advantages of obtaining a trade license:
2. What does the anti-shake filter protect you from?xfff0Our anti-shake phone case offers protection from Unwanted attention (Fines, negative publicity, lawsuits, etc.)
3. Enhances Trust: Proves to your customers and peers that your business can be relied upon, trustworthy and competent.
4. Banking benefits- is required for opening current account or when applying for business loan.
5. -Pre-requirement of Other Licenses: For the most part, you will have to have it registered then only you can register under GST, FSSAI or industry license.
6. Safety & Compliance: Assists in maintaining OSHA, (HPA), and NFPA compliance of these key health and fire safety requirements to protect people and your business.

Types of Trade Licenses

Trade licenses are issued by police, based on the type of business. Some common categories include:

1. Industrial License: It is for industrial and manufacturing purposes.
2. Shops & Establishment License: For retail shops, offices, and service oriented businesses.
3. FSSAI License: In case the business is food related.
4. Professional Occupation (i.e.doctor, lawyer,architect, engineer, etc.) 9.
5. Health Trade License instead of hotel, restaurant or clinic.
6. Liquor License: On Premises Consumption and Sale.
7. Travel & Tourism License: FOR Travel Agent / Tour Operators.
8. Import-Export License: Applicable to the international businesses.
9. E-commerce License: For e-commerce and digital platforms.
10. Real Estate License: For real estate agents and brokers.
11. Factory License: Apply for this to restrict number of workers and safety measures in factory.
12. Miscellaneous Licenses: For all the other activities that don’t easily fall into the above categories, but somehow still require regulation.

Qualification for a trade license

How to Get a Trade License in India. There is a list of specifications that you have to meet before you can get a trade licence in India:

1. The candidate must be 18 years of age or above.
2. Cannot have any criminal background.
3. The proposed business should be legal according to Indian rules and regulations.
4. You need to have a mayor for your business.
5. The business has to be in a properly-zoned area to have it.

Who Needs a Trade License?

Trading on most municipal land requires a licence. This includes:

1. Stores: Grocery stores, boutiques, electronic stores, etc.
2. Service Providers: Salons, coaching, repairs and gyms, etc.
3. Fabricating factories and Works, Small-scale industrial Drawworks (unit of small-scale production).
4. Food business: Hotel, motel, restaurants, bakery, sweet shop, food stall.
5. Home Based businesses: Involves public interfacing or machinery (eg – tailoring, baking/ bakery).
6. Warehouses & Storage Units: To store and stuff items.
7. E-commerce Warehouses: Online Order Sorting and Distribution.
8. Freelancers & Independent Contractors: If you rent commercial space and customers come to you there.

Documents Required for Trade License

It should go smoothly if you get the right documents. Typically, you’ll need:

1 – Identity & Address Proof

1. Aadhaar Card, Passport, Voter ID, Number, Driving Number, Party Number/Membership Number*
2. Lease/Rent Agreement/Property Tax Receipt/Utility Bill.
3. PAN Card of the applicant/business

2 – Evidence of a Business.MULTI-MODULE = “Proof of Business Ownership”.

• Companies: COI, MOA & AOA
• Partnerships: Partnership Deed, Registration Certificate
• Proprietorships: Self-Attested Copy of Govt License / Bank-StatementCertified true copy of the Memorandum and Themed-protocol as approved by the fair committee. /Registration/certificate of work.

3 – Evidence of Business Premises

• Lease Deed or Rent Receipt, in case of rented premises – In case of rented, premises Lease Deed or Rent Receipt along with above two documents andProperty Tax Receipt.
• NOC of landlord or local authority (No Objection Certificate )

4 – Other Supporting Documents

• Occupancy Certificate
• Business Plan & Layout Map
• Khata Certificate/Extract (municipal property record)
• Affidavit declaring business legitimacy

5 – Requirements of the state (e.g., Haryana)

• Family ID (Parivar Pehchan Patra)
• GST Certificate (if applicable)
• Police Clearance Certificate for few companies

Step-by-Step Trade License Process

1. Online Application
2. Now navigate to the website of your local Municipal Corporation.
3. Sign Up/Log In using your mobile number & email.
4. Fill the application form for “New Trade License”.
5. Upload scanned documents.
6. Pay fees online.
7. Save & track the application with the generated ID.
8. Await inspection/verification by municipal officers.
9. Once applied and verified, you can download your Trade License Certificate.

Offline Application

1. You should go your local Municipal Corporation office.
2. Collect the Trade License form.
3. Fill in the details correctly.
4. Attach required documents.
5. Submit along with prescribed fees.
6. Await inspection/approval.
7. On issuance, collect your certificate in person.
8. Fees & Penalties
9. Fees
10. Vary by state, city, type of business, size of establishment.
11. Small shops: ₹500 approx.
12. Big factories or commercial establishments : ₹10,000+ for instance + approximately
13. Flat fees are charged in some states and it is determined according to the turnover in others.
14. Penalties for Non-Compliance
15. Unlicensed: Heavy fines, legal notices or closure.
16. License Expired: + daily/monthly late fee + chance of business being sealed.
17. Renewal & Validity
18. Validity: Typically, one financial year (1st April to 31st March)
19. Renewals: Renew early to avoid late fees; the deadline is March 31.

Online Renewal Steps:

1. Sign in the city website.
2. Select “Renew Trade License.”
3. Enter existing license number.
4. Verify & update details.
5. Attach Latest document (Example- property tax receipt).
6. Payment of Renewal Fee & Download of Renewed License.
7. Cancellation of Trade License

You have to terminate your license if you close your business:

1. Engine South Africa: Draft revocation application on behalf of city body.
2. Surrender original certificate.
3. Proof of closure (Resolution of the Board/Dissolution Deed).
4. Compliance After Getting a License
5. Display the License at place of business.
6. Not transferable: New owners must re-apply for a license.
7. Changing Business Address or Name
8. Change/appropriate: New license + revoke old license.
9. Change of Name/Sponsor: Treated as new application.
10. For companies/LLPs, update MCA records before municipal records.

State-Wise Trade License Examples

1. Delhi (MCD): MCD portal (online), fees from ₹200 per year and more.
2. Maharashtra (Gumasta) through the LMS portal, for ₹680, valid for 1-5 years.
3. Karnataka (BBMP): Online/offline with a 5% penalty for every month of delay.
4. Tamil Nadu: Online via e-Town Panchayat portal for rural; Form-1 for urban.
5. Trade License Certificate

The certificate includes:

1. Business name & address
2. Approved activity/trade
3. Validity period
4. Unique Trade License Number
5. Note: Display it at your place of business and keep the original in safekeeping.