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Trade License

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What is Trade License?

It is a license or permission it is issued by the municipal corporation granting permission to carry on a particular trade on a particular address. If anybody wants to plan start a bussiness of your own and you have no idea to establish the bussiness and what approval needed, fristly you have to look is that –whether you want to deal in goods or services and second thing is –what will be your place of bussiness. After it clearfication above all the mentioned points, then you to-do list is receiving a trade license. It is (Trade License) ensures adherence to relevant rules, standard and safety strategies usual in the land.

When Trade License is applicable?

All bussiness men are planning to start their bussiness operation will be required to get the trade license within 15 days of the beginning of any actions. The actions consist of producer, give-and-take or even storage of any goods. In some states it is compulsory to apply for the trade license 3 months preceding to the commencement any bussiness actions.

Controller of Trade License

Usually, The Trade license is controlled in the state by the state governments with the help of municipal corporations of the locality. In some states, it is compulsory whereas it is optional in other states. The amount of trade license is arranged various from one state to another state. The collection of amount is very different for trade license. In some cities it is charged as the yearly fees, it is charged on the basis of measurement of bussiness turnover. Some state has released assured departments from receiving a trade license.

Minimum Supplies for getting a trade license

In different states and cities, the government has prescribed certain lowest supplies for getting trade license. Some conditions are as below:

  •     any individual applying for trade license must be atleast 18 yr of age.
  •    The actions in which the bussiness is going to contract shall be authorized.
  •    The applicant must be clean from any criminal background.
  • Type of Trade License

  •    Type A: - Type A licenses are delivered for the bussiness events interrelated to usable items and eating hubs.
  •    Type B: - Type B licenses are delivered for trades which makes use of locomotive supremacy. Like as a industries, flour mills, workshop etc.
  •    Type C: -This license is issued for dangerous actions such as firewood, charcoal etc.

Minimum Supplies for getting a trade license

  • The trade license regeneration is done from 1st January to 31st March of all year. It is not a one-time license. It is regeneration on journal basis. The requirement of payment of yearly fees for the steadiness of the registration is also compulsory in some states. A charge of 50% of the registration amount is imposed in case of any interruption procedure. For the regeneration of trade license following documents are required.
  •    Tax payment receipt
  •    Copy of the original registration
  •    Challan of the amount paid of the previous year

List of document requried

  •     PAN Card of company/proprietor/partnership/LLP.
  •    Aadhar card of directors/ partners/proprietor.
  •    In case of company MOA, AOA & COI is requried.
  •    In case of partnership/ LLP partnership deed is requried.
  •    Premises proof (rent agreement, electricity bill, NOC form landlord etc.)
  •    Cancelled cheque
  •    Bord of resolution
  •    Authorisation letter for all other partners
  •    Key plan
  •    Fir noc
  •    Photograph of business premisess
  •    Nature of business in which company deals
  •    Commodity details


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