Trade license is essential for every business that carries out a trade or business.
It is valid only for a year.
A Trade License is a legal document issued by the local municipality that provides authorization to a person, or a party, to commence business operations. It is only granted if the business adheres to all the rules and regulations laid down by the corporation, and safety authorities, of the respective state in which the business is located.
The application is filed with the commissioner in the corporation 30 days prior to the commencement of the business. During this process, the business has to submit all the mandatory documents.
Legal Entity: In order for a business to be considered as a legal entity it needs to have a trade license.
Manges Rules & Regulations: As stated by the Municipal authority in which the business is located.
A Measure of Competence: With a trade license, a business can operate in a commercial space, without fear of being shut down. This provides a display of confidence and competence, in the business and entrepreneur.
When applying for a trade license, there are certain categories of people who can’t apply for a 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 that is carried out.
This type of license is required for those who would like to open a shop or an establishment to sell goods or services.
This type of license is required for a company that wants to open a small or mid-sized industrial unit.
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.
Form 353: Once the type of trade license is finalized, Form 353 is duly filled with all the required details. All the above-mentioned documents are submitted to the Municipal Ward Office.
Validity: After the application is filed, and if more information is required, authorities may demand additional details. If all the details are found to be satisfactory, the trade license is issued. The validity of the trade license is one year and it takes about 2-3 weeks to procure one, which is dispatched through a courier service.
Non Compliance: Trade License is a mandatory requirement 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 repercussions.
When applying for a trade license, one needs the following documents for verification;
In India, Trade License renewals take place between January 1 and March 1 of every year. While applying, a person should present the following documents for verification;
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