Trade License


A Trade License is a legal document from the municipality that provides authorization to a person or a party to commence business operations. Trade license is given only if the business adheres to all the rules and regulations laid down by the corporation and safety authorities of the particular state.

The application has to be filed with the Commissioner in the Corporation 30 days prior to commencement of business. While filing, the business has to submit all the mandatory documents.

Who Can Apply for Trade License

Anyone can apply for a trade license except those who:
  • Are under the age of 18
  • Have criminal records against them

The Different Types of Trade License

There are three types of trade licenses that a company or individual can apply for based on the type of trade or business they carry out.

Shop License

This license is needed for anyone who wants to open a shop. The shop can be of any retail type.

Industrial License

This type of license is needed for any company that wants to open an small or mid-sized industrial unit.

Food Establishment License

Any establishment that plans on getting into the food and beverage industry needs this license. The license applies to restaurants, cafes, meat shops, bakeries and vegetable shops.

Documents Needed

When applying for a trade license, one need to show the following documents:

  • Form 353 duly filled
  • A letter of consent from owner or neighbour
  • The city survey map of your property
  • Tax receipts
  • A blueprint of the premises incase the business deals with explosives, timber and dangerous goods.
  • Other documents that the Ward Officer may demand at the time of registration.
  • For Renewal, you need the following documents

    In India, trade license renewals take place between January 1st to March 1st. While applying, a person should show the following documents:

    • The original trade license
    • All tax receipts, showing up to date payments
    • Past payment challans

Procedure for Trade Registration

Once the type of trade license is finalized, the Form 353 has to be duly filled with all the required details. All the above-mentioned documents have to be submitted to the ward office of the area’s local municipality.

After the application is filed, if more information is needed the authorities may demand for addition details. If all the details are found satisfactory, the trade license will be issued. The validity of the trade license is one year and it takes about 2-3 weeks to procure one. It will be sent through courier.

Non Compliance

Trade license is the mandatory license for every business. Hence, if any business owner fails to get one before starting a business, he or she is liable to pay a fine or may face legal repercussion.

FAQs on Trade License


The whole procedure of getting a trade license should not take more than 15 days. At Vakilsearch, we will help you get your trade license within a span of 10 days, from the time you apply.
Yes, the government has made it mandatory to get your license renewed every year. Failing to do so, can attract a penalty or a fine.
Yes, you will need a trade license irrespective of which line of business you are in. Any business that does transactions with another person, has to have a trade license. For a restaurant, you need a Food establishment license.
You can apply for a trade license before 30 days of your commencement of business. Without the license, you will not be able to start operations of your business.
If for any reason you are denied a trade license, you can submit a petition to the Standing Committee (Health) with a copy of your denial letter.

Why Vakilsearch


4 Business Days

At Vakilsearch, we can deliver all your documentation requirements in just four working days. And if you're not totally satisfied, we'll take another couple of days to work on the modifications you need. All at the lowest price, both online and offline.

9.1 Customer Score

We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

160 Strong Team

Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.

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