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Trade License

How Long Will It Take To Receive The Trade License Certificate?

Trade licenses get issued within a span of 7-12 days post the application submission. Know more about the process and timeline of trade license certification here.

If you plan to start a new business, you must consider the essential documents you require to trade. One of the most important documents is a trade license certificate. It is crucial when starting a business or trading in a specific municipal limit.

Basics About A Trade License

A trade license is a certificate that permits you to open a business or start trading in a specific location. It ensures that the company carries out as per the standards mentioned by the state Municipal Corporation. It also protects the residents in the location from all the health hazards. But at the same time, the license does not allow you to carry out any other trade or business other than what it is issued for. Additionally, this license does not pass any property owner to the license holder.

Benefits Of a Trade License

Trade licenses have been introduced in the country for the past four decades and are extensively regulated through Municipal Corporation acts by the state governments. This helps ensure that no one is affected severely by any trade or business nuisance and health hazards. In addition, the government has made it necessary to carry out specific industries or trade in a particular area and ensure that no one carries out any unethical practices.

The license creates harmony in society that every business follows all the guidelines and aligns with the safety measures. The license was made compulsory to ensure the government could regulate different trade activities in the country.

The principal objective of issuing these licenses is to control the locations by restricting the people from executive some types of businesses from their home location to maintain the business environment besides the local environment.

Where To Get The Trade License?

Municipal Corporation has licensing departments in different departments, including industries and health engineering. The Government of India mainly authorizes the license to regulate cities across other parts of the country. It grants permission through documents or letters to carry on the business or trade where it is located. The license issuance varies from one part of the country to another, depending on the local government’s municipal rules and regulations.

Types of Trade Licenses

  • Industry license
    The small, medium, and large-scale manufacturing industries are eligible for this license.
  • Shop license
    Shop licenses are available only for dangerous and offensive trades like the sale of firewood crackers. Even barbers can avail of shop licenses,
  • Food Establishment license
    It is given to hotels, restaurants, canteen food stalls, the sale of meat and vegetable bakeries, etc.

Who Can Apply For A Trade License?

  • It would be best if you met the following eligibility criteria for applying for the trade license.
  • It would be best if you were at least 18 years old. You must not have any criminal record.
  • Your business must be permissible legally.

Documents Needed For The Application For Trade License

The documentation needed for the application for the trade license registration is mentioned here.
You need to submit some documents as address proof of your business.

  • ID proof as an applicant
  • Aadhar card
  • Pan card if you are the proprietor or else pan card of the firm. 
  • in the case of a company, you need to submit a memorandum of association
  • You can submit the municipal property’s latest receipt if you do not own the premises. You can also submit the consent letter from the property owner where the business is registered.
  • NOC from the neighbors
  • Certified layout plan of the office
  • In the case of companies, certification of incorporation is mandatory. You can apply online or offline for the trade license through the local Municipal Corporation.

The Main Objectives Of A Trade License

  • The government issues trade licenses to fulfill the requirements of the business. Besides this, the trade license is given for the following reasons.
  • It helps in regulating business within a particular municipality or locality.
  • The trade license ensures that anti-competitive practices are not followed within a specific municipality.
  • The license helps in monitoring business activities. The local authorities can also constantly check the activities conducted by a business.
  • Issuing such a Trade license Certificate will indicate that the business follows all the practices mentioned by the local municipality.
  • Businesses with such licenses are more replicated in the consumer’s eyes. As a result, consumers would have better confidence in their services.
  • Businesses would not use residential premises to conduct business by securing a license.
  • The license also regulates the use of environmentally friendly elements to conduct business within a specific locality.
  • Companies with this license form would take all the necessary precautions while carrying out a specific activity.

Procedure To Apply For A Trade License

  • You need to apply for a trade license online or offline. For the online method, you need to make the application and attach the prescribed documents. For the offline mode, you must take all the documents to the relevant authority and submit them. Then, the applicant needs to fill out the application with the respective details for the license.
  • As per the requirement, different states would have other processes for applying for the license. But the government has brought out initiatives to make systems in every state electronic. Therefore, the applicant must go to the prescribed webpage to file the trade license online.
  • The applicant will get a popup notification after this related to the terms and conditions that need to be followed.
  • The next step in the process will include the applicant filling in all the essential details regarding the trade license.
  • The online system has a specific model, while authentication of documents can be carried out electronically. 
  • You will get a confirmation once the process is carried out for registering your trade license successfully.
  • Reviving the trade license is faster in metro cities than in rural areas.



A trade license is a simple license or a certificate you need to carry out business operations in any locality. Ideally, the licenses are provided by the state government or a municipality. You can open a business in a specific region with this license. You can follow the steps mentioned here to get the trade license. Vakil Search offers one of the largest professional platforms available today, which has been able to register 10% of all companies in India. 

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