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Trade License

Procedures to Follow for Trade License Application

Having a trade license is essential for businessmen to validate their business. There are different ways you can apply for a trade license online. In this article, we will learn about the same in detail.

A trade license is mandatory to start a business in India. Further, it is a document that allows the applicant to begin their business venture in a specific area or location. The government of the particular state is responsible and the authority that issues the trade licenses. They consult the fire, health, and engineering departments before issuing the same. The trade license validates the business and ensures that the company doesn’t proceed with its business in unethical ways that can harm the people living in the locality. How long is a trade license application valid? Can it be renewed? Let’s discuss the same in detail.

Trade License Validity and Renewal

The most important question we all have in our minds is whether the trade license is valid and whether it can be renewed. The Trade license is valid for one year from the date of issue of the same. The certificate can be renewed every year between Jan 1 to Mar 31.

All you need to do is to apply for the renewal of your trade license within 30 days of the expiry of the previous certificate. 

With the coming of the online application process, trade license application online has become easy. You can apply for and renew your trade license online rather than wait in long queues. However, make sure you submit the documents required for the renewal of your trade license. 

Procedures to Follow for Trade License Application

For getting a valid trade license registration, the applicant must follow certain procedures. But before proceeding with the same, know what type of trade license you are looking for. Then follow the below procedures:

  • Visit the online portal of the respective state government.

The first step you should follow is to visit the online portal of the specific state government. For instance, if you are in Delhi, log in to the central government website dedicated to the trade and commerce of the national capital. 

  • Fill in the details required.

Secondly, fill in the details required without leaving behind any important details. As every detail of the applicant is essential. Excluding these details can end up in the rejection of your application. 

  • Thirdly, the municipal corporation of the specific state will verify the documents and the application form.

The most important procedure is the verification of the application and the essential documents by the municipal corporation of the specific state. This will help the applicant to ensure their documents and application are validated by the authority.

  • Check the status of your application by entering the application number along with the registered mobile number.

Finally, when the applicant is done with the application for the trade license, track the status of the application in the portal by using the application number and the registered mobile number.

Thus, these are procedures you should follow for the Trade license application online. 

Eligibility Required for Trade License Application

Before you apply for the Trade license application and the renewal of the same, the applicant has to pass the eligibility criteria as mentioned below:

  • The applicant must have Indian Citizenship.

One of the most important eligibility criteria the applicant needs to have is that the individual must be a citizen of India. Moreover, they should be permanent residents of India. 

  • The minimum age of the applicant is 18 years and above.

The applicant must be 18 years and above to be eligible to apply for a trade license and further for its renewal.

  • No criminal records in the name of the applicant.

Another important criterion the applicant must pass is that there should be no criminal records in the name of the applicant. 

  • The business must be legally acceptable.

Before you apply for the trade license and renewal, the business must be legally acceptable to the government of India. Further by the specific state government as well.

  • The application must be submitted 30 days before commencing their business.

Finally, the trade license application must be submitted 30 days before commencing their business. 

Hence, these are some of the eligibility criteria required to apply for a Trade license application. 

Processing Time for the Trade License Application

For every application including the trade license application, there is a specific processing time. The trade license application process time is from 7-10 working days in the metro cities. Further, it takes a longer time when it comes to smaller cities. However, depending on the respective state government, the processing time will differ. 

But if the process of the trade license application takes more than 2 weeks, then contact the respective municipal corporation of the state. They will let you know about the issues in your application. 

Documents Required for Trade License Application and Renewal

There are certain documents required for the Trade license application procedure. They are:

  • Correctly filled out Application form along with passport-size photographs

The first document is of course the correctly filled application form with passport-size photographs. Make sure you fill in the required details along with your latest photographs. 

  • Aadhar card details

Secondly, along with the application form submit the Aadhar card copy with all the essential details. 

  • Certified trade/ business building layouts.

Another most important document you need to submit is the certified trade/business building layouts. This will enable the respective state government to validate the trade license. 

  • PAN details and incorporation certificate in the case of company application.

While filing for the trade license for your company, ensure that you provide the PAN card details and incorporation details of the company. This will help in validating the trade license application. 

  • Submit the Property tax receipt 

The next document you should submit is the property tax receipt. This will ensure that your company is not evading tax. 

  • Rental agreement or lease agreement 

If your business is commencing in a rental space, then submit the rental agreement or lease agreement of the same.

  • Neighbour’s NOC.

For the approval of your trade license, your neighbor’s no-objection certificate is also essential. This will ensure that there is no hurdle in the trade license apply online. 

  • Provide the Khata certificate

The Khata certificate is the document that identifies the owner of the property. For the trade application process and its renewal, the applicant must provide a Khata certificate along with other documents. 

  • Occupancy certificate

Finally, the most important document to submit is the occupancy certificate of the applicant. This ensures that the building adheres to the building codes of the country and further it is occupiable. Thus, these are important documents you will need to apply for a trade license and its renewal. 


Overall, a trade license application and its renewal every year are essential to ensure that your business is running smoothly and it follows all the rules and regulations of the respective government. For more information and help related to issuing a trade license, get help from the experts of Vakilsearch.

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