Do you want to start a trading business in Kerala? Getting a trade license in Kerala is not that hard. All needs necessary to apply for it are described in this guide. Read this article to have an in-depth understanding of ‘Trade License in Kerala: Norms and Documentations’.
Embarking on a business venture in Kerala necessitates a thorough understanding of the trade license process, seamlessly facilitated by lsgkerala.gov.in. This digital platform emerges as the cornerstone, simplifying the application and renewal procedures for entrepreneurs. As we delve into the intricate world of trade licenses, the focus sharpens on lsgkerala.gov.in—a dynamic portal ensuring transparency and efficiency. This introduction unravels the synergy between obtaining a trade license in Kerala and the digital prowess of lsgkerala.gov.in, where progress in entrepreneurship aligns seamlessly with the state’s commitment to embracing digital innovations in governance.
Trade licenses are certificates that the local authority gives, such as Panchayat and Municipality Corporations. These licenses permit the conduct of any type of business in the location for which the municipal corporation issues it. A trade license is essential to operate any business establishment that is located in Kerala.
Importance of Trade License in Kerala
The trade license in kerala is necessary for businesses for legal reasons to conduct diverse actions. It is an official document that grants legitimacy to the company and gives it the power to conduct certain activities within the country where the municipal corporation issues it. You can get this type of license only for some specific activities for which you want it. It doesn’t grant any specific authorisation to perform another activity other than the one it was originally issued for.
The reason you require the trade license online apply is that it confirms that the actions that your business carries out aren’t susceptible to causing any kind of health risk. Also, it shows that your business will not be performing any act that the Government could consider a nuisance.
The amount you have to pay in order to obtain the trade license is what the state determines when you apply for it. Certain municipalities have specific fees that you must pay. They can be a fixed cost, or they can be according to the annual sales you make.
The Eligibility to Obtain Trade License Kerala
Each business that is being conducted in a specific area has to be granted a permit by the state government. In order to make sure that there is no risk of illegal activity being conducted, the following rules have been established:
- The applicant must be 18 years of age at the time of submitting the application. They should also not have criminal convictions
- The nature of business has to be legal
- Food service companies that provide trade-in services and manufacturing units must get a license
How to Get a Trade License in Kerala?
Step 1
The applicant must send the application with necessary and recommended documents either on the internet or by mail to the officer or secretary.
Following the application receipt along with any supporting documents, the secretary must issue an acknowledgment or a reply to applicants. In the absence of any specific document attached to the application, the secretary or the officer must immediately notify the applicant.
Further, the secretary must give the applicant the supply of all necessary documents within 3 days from the date you submit the application.
Step 2
Based on the nature of trade, the procedure of the application commences at the proposed inspection of the premises and the submission of information regarding the field verification through the Health Inspector, who reports directly to the Secretary.
On the basis of the suggestions made by the Inspector, the Secretary decides whether a license is given or denied.
Step 3
Fee information (as in schedule II, which excludes the cost of stamps, notarization fees, court stamps fees, and government fees.)
- ₹6500 for small, micro, and medium-sized shops and commercial offices that have only one state operation, excluding franchises, multi-state brands, or any other business
- ₹8000 for small, micro, and medium Commercial offices and shops that operate in multiple states but are not the largest multi-state brand or franchise businesses
- ₹12000 for large and multi-state branded stores and commercial offices. This includes logistics, warehouses, multi-state franchises, and restaurants
Step 4
The license will be issued within eight days after receipt of the prescribed fee.
Documents Required for Trade License in Kerala
- Application form
- ID Proof of the Applicant (Passport/Bank Passbook/PAN/DL)
- Address Evidence of applicant (Bank Passbook/or Passport)
- Passport Photograph (for the single owner) or Jt. Photography (for Jt. Owners)
- For Companies/Firms/Societies (Registration Certificate)
- Tax receipts for Property Tax current and up-to-date (Commercial –Business Industrial)
- GST Number
- Letterhead
- Self-declaration
- Aadhaar Card
- Rental agreement in the event that it is a rental property
Kerala Municipality Amendment Act, 1996
The Kerala Municipality Amendment Act mandates that anyone starting a business in the state, including industries, factories, or workplaces, must first obtain authorization from the relevant government before beginning any work.
You may have registered your company or company, but you’ll require a number of licenses before beginning the operations of your business like FSSAI, GST, Trade license, etc. Trade licenses are easily obtained online by submitting the application to an organisation like the municipality of state, along with the necessary costs. The whole process can take as long as 40 days.
Benefits of Getting a Trade License in Kerala
Legally Safe
A trade license means that the work environment of the business in question is secure and that it is in accordance with the guidelines and regulations that are in force in the state.
It also means that you can’t shut down the business. This is due to the fact that it’s not appropriate for the zone. It protects owners from certain types of liabilities, too.
Doesn’t Mean Competence
Usually, you get a license after a test, and, in the case of a trade license, the municipal corporation officials verify whether the company is able to operate in the zone or not. If you get a license, it basically means that the business is able to operate in a specific area.
Penalties Inflicted
An analogy for trading licenses can be compared to the driving license since the driver who doesn’t have a driving license is likely to be subject to penalties and, in some instances, go to jail.
The same happens to a person who starts running a business in an area that does not have previous approval from the state government. He/she will likely face a shutdown and severe fines.
The amount of penalties imposed for such businesses is based on the type of operation and the location in which it is carried out.
Conclusion
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