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Trade License

What Is A Trade License?

Are you thinking about starting a new business? The trade license is important for establishing a business or trade within a municipal limit. We will explain the benefits of the trade license in a brief manner.

As the name suggests, a trade license is a license to conduct trade. The administrative authorities of the location generally issue it out of which you intend to carry out your business. It can be in the form of a certificate or a registration number. 

In India, where there are multiple layers of administration, the issuance of a trade license is done by the lowest administrative body, the municipal corporation of the locality where the business is to be conducted. This is because the municipal body has physical access to the location of the business and can verify the facility or premises if needed.

To obtain a trade license, one has to complete certain formalities and meet certain guidelines to become eligible to conduct business. Each municipal corporation can set its procedures and requirements depending on the municipality’s infrastructure.

It must be noted that the word trade license is a broad term. There is no specific license called a trade license. Different types of licenses fall under the definition of trade license. This includes the Food Safety and Standards Authority of India (FSSAI) license, Shops and establishments certificate, manufacturing license etc.

Benefits Of Having A Trade license

  • One of the major benefits is that the licensed business enjoys goodwill and can attract more customers. This is the era where customers value quality rather than quantity, so it’s important to have a trade license.
  • Those companies with trade licenses prove that they have better business practices, and those who do better can attract more investors and business organisations for collaboration purposes.
  • If the person cannot get the license, then the government has the right to impose the charges on any such business, which may even lead to a shutdown.
  • It also protects the owner against any unexpected liability.

What Is The Eligibility For Applying For A Trade License?

As mentioned before, businesses must meet certain standards and complete certain formalities to obtain the license. Let us take a look at some of these requirements.

  • The applicant must be 18 years and above.
  • The applicant should not have any criminal record.
  • The business must be legally permissible.

What Are All Documents Required For A Trade License?

Apart from meeting the standards and completing the formalities, certain documents must be furnished along with the application form to process the trade license application. The list of required documents is as follows:-

  • Address Proof
  • ID proof
  • PAN Card, along with the incorporation certificate of the company
  • An aadhaar card is necessary.
  • Latest Municipality Property Tax Payment Receipt
  • Lease agreement in case the business’s premises are on lease and a consent letter from the owner. In case the premises are owned, a copy of the title deed must be furnished.
  • The NOC or No objection certificate of the immediate neighbours
  • A certified layout plan of the office

It takes around 7-8 days for the issue of license

What Are All Steps Required For Trade License Registration?

  1. Log on to the respective website of the Municipal Corporation
  2. Additionally, go to the Citizen Service Option
  3. Now, click on to Online application
  4. Therefore, you need to enter all the details like personal information and credentials
  5. Submit the form, and you will get a registered user ID and password
  6. Additionally, Login in with your ID and then apply for a new license
  7. Moreover, you need to fill in all the credentials like NOC, property details, type of business, etc.
  8. Next, you must upload all the required documents to support your information.
  9. Additionally, submit all the details.
  10. The next step is the verification of the documents
  11. Additionally, after successful verification, you will get a Unique Application Number
  12. After that, the page will redirect you to the trade license payment page. Moreover, you can choose different modes of trade license payment online. After paying the fees, you will receive the Trade license Number.

What Is The Procedure For Renewal?

Once you have got the license, it must be renewed annually. The right time to apply for trade license renewal is 30 days before the expiry date. In case there is a delay in the license renewal, then there is a late fee of up to 50% of the license fee.

To proceed with the licensee renewal, the following documents have to be furnished:

  • Original copy of Trade license
  • ID and address proof
  • Last year’s challan
  • Old G-8 receipt
  • Property tax receipt

You can also renew your license online. The process remains the same, but you need to have the documents mentioned above with you when you are going for license renewal online. The timeline for online and offline licence renewal is between 1st January and 1st March every year. Failing to do so may subject you to a penalty.


While most regulatory formalities have been moved online, some procedures are more effective offline. One such is the registration of a licence. The forms and the formalities differ from municipality to municipality. This can confuse you, especially if you operate your business out of multiple locations. So it is always better to engage an experienced expert who knows the ins and outs of the registration process. If you have any more queries on any other registration process or need help registering your trade licence, contact our team of experts today and get expert guidance with your requirements from our highly qualified experts.

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