Trade License Form
What is Trade License?
A trade license refers to a legal document that renders a permit to the applicant (individual seeking to set up a business) to start a specific trade or business in a particular locality/area. It ensured that the trade or business was performed by complying with all the relevant safety provisions as rolled out by State Municipal Corporation. It safeguards the residents from being hampered by any health hazards. However, the license does not permit the business owner to perform any business activities that fall outside the ambit of the license. Moreover, this license does not pass on property ownership to the license holder.
Objective of Trade License
Trade license came into existence nearly four decades back and is being governed via Municipal Corporation Act. The Trade license promotes fair trade practice and seeks to safeguard the public from health hazards of any trade, and it has been made mandatory by the Indian government to conduct any kind of business or trade-in particular locality & to ensure that no one is leveraging unethical business practices.
The license seeks to instill harmony in society and mandates business owners to comply with underlying guidelines. The license also provides business owners with the requirement of following safety measures.
Benefits of Trade license
Who Needs to Obtain a Trade License?
Following business entities are mandated to secure trade license from the respective Municipal Corporation before commencing business operations:
Which Authority Confers Trade license in Respective State?
Eligibility Criteria for Securing Trade license
The eligibility conditions for securing a trade license in a particular state are as follows:
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Common Documents Required for Obtaining a Trade license
Following is the list that encloses all the mandatory documents needed for securing a trade license:
1. Business's address proof
2. Applicant's identity proof
3. Aadhaar card
4. Permanent Account Number, i.e. PAN of the applicant in case of proprietorship, else PAN of the firm.
5. MoA, i.e. Memorandum of Association in case of Companies
6. Incorporation certification in case of Companies
7. Property tax receipt (latest ones) in case the business place is owned, else lease document or permission letter issued by the real owner where is business is registered.
8. No objection certificate, i.e. NOC issued by the nearby property owners
9. Certified Site or floor plan
Steps Followed to Secure Trade license Online
Head over to the Municipal Corporation Website:
The first process is to visit respective Municipal corporation website. ‘Citizen Service’ Option from the respective Municipal Corporation website.