Trade License – Renewal process, Types, Benefits, etc.

Last Updated at: March 18, 2020
385
Latest Update


16.03.2020
DMC (Dimapur Municipal Council) has reminded all the traders, shopkeepers, and business establishments under DMC jurisdiction that the grace period for trade license renewal for 2020 year shall expire on 31st March. 

03.03.2020 Bhubaneswar Municipal Corporation has initiated online issuance of trade license. It will help in easy access to traders and efficient collection of revenue. 

Trade License and its renewal

The Trade License is an important document for starting your own business or trade. Without it, you will not be allowed to run a shop within any municipal limits. We will be taking a look at how trade licenses can be processed and on the trade license renewal. 

  1. What is a Trade License in India?

  2. Why Should You Apply for a Trade license?

  3. Things to Know About Trade License Renewal

  4. Types of Trade license

  5. Eligibility criteria for Trade license renewal

  6. What all documents required for Trade License renewal

  7. How to apply for the Trade License Renewal Process

  8. News Related Trade License

 

What is a Trade License in India?

A trade license is a type of certificate or kind of legal document that grants individuals the permission to open a trade or business within the limits of a specific area. It is a specific document and the applicant is not allowed to open any business, other than the one mentioned in the certificate. Therefore, it does not work like a general permit that allows people to own businesses, but as a specific certificate that allows a very particular business. Furthermore, it only grants the applicant permission to open a business, and does not authenticate any ownership of the property to the applicant.

Why Apply For a Trade License?

  • Allows the State government to keep track of the businesses functioning within the state
  • Helps in keeping track of the compliance and regulation of such businesses
  • Ensures that no illegal trading is occurring within the country
  • Prevents nuisances and health hazards to people
  • Removes unwanted and unethical business practices
  • Promotes social harmony by establishing a standard for opening a business
  • Makes sure that all the businesses functioning within the state follow certain rules and regulations
  • Helps the government regulate trade activities within the country

Get Your Trade License

Things to Know About Trade License Renewal

  1. Trade licenses are issued by the Licensing department which works under the jurisdiction of the municipal corporation
  2. The licensing department has various departments under it such as engineering, health and even industries
  3. The government itself authorises such licenses in order to regulate trade and commerce within the country
  4. While the exact procedure for license renewal varies from State to State, the basic process remains the same throughout India
  5. Usually, the entire process takes from anywhere between 7 to 10 days to complete. In case it takes more than 2 weeks, consult the Municipality to know if there are issues with your application

Types of Trade License

  • Industries license: Applicable for all kinds of factories ranging from small and medium to large scale production facilities
  • Shop license: Applicable for factories producing dangerous commodities such as firewood, firecrackers, candles and barber shops 
  • Food establishment license: Applicable if the applicant wishes to set up any business dealing with eatables, such as restaurants, food stalls, hotels, canteens, bakeries and meat or vegetable stalls 

Eligibility criteria for Trade license renewal

  1. The applicant must be an adult, above the age of 18 years, and not a minor.
  2. The individual applying for a trade license renewal must not have any criminal cases against him or a criminal background 
  3. The business for which the applicant is seeking the trade license must be legally acceptable within India and must not deal in illegal items
  4. The applicant must be an Indian citizen
  5. The application must be registered at least 30 days before starting the business in most States

Documents required for Trade License renewal

  1. Duly filled application for Trade License in the prescribed form
  2. In case the license renewal is for a firm, Private limited company, partnership or LLP, they must submit their PAN and incorporation certificate
  3. Aadhaar card if the applicant is an individual
  4. Property tax receipt from the Municipality
  5. In case the business occurs in a rented property, the rent agreement/lease agreement
  6. Neighbour’s NOC
  7. Blueprint of the building wherein you want to start the business
  8. Katha extracts and certificate
  9. Sanction plan for the blueprint from the Municipality
  10. Occupancy certificate

For renewal, the applicant must also submit a copy of the trade license, Challans from last year and tax receipts from the previous year

Trade license Renewal Process

  • Most of the license renewal takes place between 1st of January and 31st of March
  • Trade licenses are valid for one year. After that, they must renew in order for the applicant to continue his or her business.
  • The application for license renewal must be put in at least within 30 days after the expiry of the old license.
  • If the process is delaying beyond reasonable limits, the applicant will have to pay a fine as per the rules of the Municipality.
  • To apply for the license, the applicant must visit the State government’s official website.
  • From the homepage, go to the Trade License tab and load the application for the same.
  • After filling the application, upload the supporting documents.
  • The State officials will then verify the application, go through the documents and decide whether to approve or reject the application.
  • You can check the status of your application online via the official State website by using the application number.
0

Trade License – Renewal process, Types, Benefits, etc.

385

The Trade License is an important document for starting your own business or trade. Without it, you will not be allowed to run a shop within any municipal limits. We will be taking a look at how trade licenses can be processed and on the trade license renewal. 

  1. What is a Trade License in India?

  2. Why Should You Apply for a Trade license?

  3. Things to Know About Trade License Renewal

  4. Types of Trade license

  5. Eligibility criteria for Trade license renewal

  6. What all documents required for Trade License renewal

  7. How to apply for the Trade License Renewal Process

  8. News Related Trade License

 

What is a Trade License in India?

A trade license is a type of certificate or kind of legal document that grants individuals the permission to open a trade or business within the limits of a specific area. It is a specific document and the applicant is not allowed to open any business, other than the one mentioned in the certificate. Therefore, it does not work like a general permit that allows people to own businesses, but as a specific certificate that allows a very particular business. Furthermore, it only grants the applicant permission to open a business, and does not authenticate any ownership of the property to the applicant.

Why Apply For a Trade License?

  • Allows the State government to keep track of the businesses functioning within the state
  • Helps in keeping track of the compliance and regulation of such businesses
  • Ensures that no illegal trading is occurring within the country
  • Prevents nuisances and health hazards to people
  • Removes unwanted and unethical business practices
  • Promotes social harmony by establishing a standard for opening a business
  • Makes sure that all the businesses functioning within the state follow certain rules and regulations
  • Helps the government regulate trade activities within the country

Get Your Trade License

Things to Know About Trade License Renewal

  1. Trade licenses are issued by the Licensing department which works under the jurisdiction of the municipal corporation
  2. The licensing department has various departments under it such as engineering, health and even industries
  3. The government itself authorises such licenses in order to regulate trade and commerce within the country
  4. While the exact procedure for license renewal varies from State to State, the basic process remains the same throughout India
  5. Usually, the entire process takes from anywhere between 7 to 10 days to complete. In case it takes more than 2 weeks, consult the Municipality to know if there are issues with your application

Types of Trade License

  • Industries license: Applicable for all kinds of factories ranging from small and medium to large scale production facilities
  • Shop license: Applicable for factories producing dangerous commodities such as firewood, firecrackers, candles and barber shops 
  • Food establishment license: Applicable if the applicant wishes to set up any business dealing with eatables, such as restaurants, food stalls, hotels, canteens, bakeries and meat or vegetable stalls 

Eligibility criteria for Trade license renewal

  1. The applicant must be an adult, above the age of 18 years, and not a minor.
  2. The individual applying for a trade license renewal must not have any criminal cases against him or a criminal background 
  3. The business for which the applicant is seeking the trade license must be legally acceptable within India and must not deal in illegal items
  4. The applicant must be an Indian citizen
  5. The application must be registered at least 30 days before starting the business in most States

Documents required for Trade License renewal

  1. Duly filled application for Trade License in the prescribed form
  2. In case the license renewal is for a firm, Private limited company, partnership or LLP, they must submit their PAN and incorporation certificate
  3. Aadhaar card if the applicant is an individual
  4. Property tax receipt from the Municipality
  5. In case the business occurs in a rented property, the rent agreement/lease agreement
  6. Neighbour’s NOC
  7. Blueprint of the building wherein you want to start the business
  8. Katha extracts and certificate
  9. Sanction plan for the blueprint from the Municipality
  10. Occupancy certificate

For renewal, the applicant must also submit a copy of the trade license, Challans from last year and tax receipts from the previous year

Trade license Renewal Process

  • Most of the license renewal takes place between 1st of January and 31st of March
  • Trade licenses are valid for one year. After that, they must renew in order for the applicant to continue his or her business.
  • The application for license renewal must be put in at least within 30 days after the expiry of the old license.
  • If the process is delaying beyond reasonable limits, the applicant will have to pay a fine as per the rules of the Municipality.
  • To apply for the license, the applicant must visit the State government’s official website.
  • From the homepage, go to the Trade License tab and load the application for the same.
  • After filling the application, upload the supporting documents.
  • The State officials will then verify the application, go through the documents and decide whether to approve or reject the application.
  • You can check the status of your application online via the official State website by using the application number.
0

FAQs

No FAQs found

Add a Question


No Record Found
SHARE