If you want to start a trading business in Maharashtra, then a trade licence is necessary. To apply for it, the entire registration process is explained in this guide, along with other needs. This article encompasses all you need to know about ‘trade license in Maharashtra: definition, document, and norms’.
The trade permit is the certificate or document which grants the right to the prospective applicant (person looking to start an enterprise) to begin a specific business or trade within a specific location or area. But, it cannot permit the holder to engage in any other business or trade than the one you wanted it for. In addition, the license doesn’t transfer any type of ownership of the property to the owner of the license. Today, we’ll check out what requirements are necessary to get a Trade License in Maharashtra and the process.
What is the Reason for a Trade License?
Over the past 40 years, trade licenses have been put in place across the country and are regulated by municipal corporation legislation by state governments. This ensures that nobody is affected by any commercial or trade nuisance or health dangers. It is required through the state’s authority to run specific trade or business within a specific area and ensure that nobody is engaging in unethical business actions.
This license helps to ensure the people living in the region where the business will operate that every company is adhering to the relevant regulations, guidelines, and safety rules. The license was introduced to ensure that the government can regulate the various trade activities conducted in the country. The main purpose behind granting such a license is to regulate the location by preventing people from operating certain types of business from home to ensure the safety of the local and business surroundings.
The Types of Licenses for Trade Issued by BMC
The city corporation can issue six kinds of licenses depending on how the business:
- A shop and establishment certificate is essential for opening any kind of trade business within the city. It’s considered the standard permit to carry out any commercial business within the city. You must display the certificate in the establishment
- Shops that sell medicine and drugs
- Shops that deal in food and drinks
- Shops that offer wholesale or retail products
- Establishments that manufacture products
In addition to getting a license for trade through the department that licences, the BMC applicants also need to obtain the required permits from the respective departments. For instance, the Health department at the BMC issues the license when it comes to bars, restaurants, or selling liquor with a no-objection permit issued by the Mumbai Fire Brigade. Also, the department of food and drugs is required in the event of selling medicines and drugs.
What Documents are Necessary to Get a Trade Permit to Register in Maharashtra?
A request for a trade license is made by the person applying online. All you have to do is send the following documents to the relevant municipal authorities:
- The application needs submission in the prescribed format
- Applicant’s PAN card and incorporation certificate prove that the applicant is any firm/LLP of the Company
- Aadhar is necessary if the applicant is an individual candidate
- The most recent municipal property tax receipts
- Lease documents or permission letters of the owner
- NOC from the neighbour in immediate proximity
- A layout plan certified by the trade building shows the company’s structure
- Katha extracts
- Katha Certificate
Who is Responsible for Granting the Trade Licence for Registration within Maharashtra?
You can grant trade licenses in Maharashtra from different divisions of the local corporation, including engineering, industries, health, etc. The process of granting the license differs between states and is dependent on local state government agencies. Many rules govern the rules, regulations and laws that must be followed by those registered, even if the person applying for registration cannot fulfill the registration requirements of the license to trade. You have to obtain the license before any trade operation starts. The non-payer may face legal troubles.
Benefits of Having Trade License in Maharashtra
- It aids in increasing the image of the business and draws clients and investors
- If you hold either a business license or trade license, you’ll be legally entitled to the privilege of promoting that you have it
- If injury or damage occurred because of the actions of the company or actions, your personal finances are not at risk in any settlement
- It can help keep your personal and business finances separate; this method will allow you to find the gains and losses of the business
- Being a licensed company may give you access to specific groups you’d not be allowed to join or join when you operate under your own name. Businesses like the best business bureaus, investment groups, and other organisations geared towards business cannot allow you to join if the business is not licensed
Eligibility Requirements for a Trade License Maharashtra
- Business must be legal
- The applicant cannot have any criminal convictions
- The applicant must be over the threshold age of 18
You must file the documents to obtain a Trade License as per BBMP.
To obtain a trade license, applicants must fill out an application and send it to the appropriate Municipal Corporation along with all the required documents.
Various documents need submission based on the business’s niche.
- Recent Municipality Receipts for Property Taxes
- When the person applying is a firm, LLP or Company, the PAN card, together with the certificate of incorporation
- In the prescribed Form, you can apply for the application
- If an applicant is new, their Aadhaar Card is necessary
- NOC from your immediate neighbour
- Lease documents or a consent note to the landlord of the home
- Katha certificate
- A valid layout plan of your building for trade showing the areas of your business, work or resting areas, or areas for washing
- Katha extracts
- Certificate of occupation (OC)
- Plan for Sanction
Trade License Fee in Maharashtra
Each state has a different charge for obtaining an internet trade license. Based on the laws and regulations in effect in that state, the same is decided. The cost is assessed annually in some states. In contrast, the same is determined and assessed in other states based on the proportion of annual firm turnover. It is important to remember that some governments have exempted specific departments from obtaining a License for Trade.
What Happens if the Authorities of Maharashtra Deny an Application?
The government must approve the application and may either approve or reject it within 10 days of receiving it. Also, suppose an application gets denied by the authority of the city/state for reasons related to the lack of compliance or documentation.
In that case, the applicant can submit a second application for the license. Also, there is no limit to the number of instances an individual can apply for the trader’s license in the city/state.
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