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Trade License - How To Get A Trade License?

It is essential for every business that carries out a trade to have a Trade License. A Trade License is registered at the local municipality, where the business is located.

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How does trade license work?

Trade license is essential for every business that carries out a trade or business.
It is valid only for a year.

We will help you put together all the
required documents.

Step 1

We will file the application on your behalf.

Step 2

You will then receive the trade license
for your business.

Step 3

We will help you put together all the required documents.
We will file the application on your behalf.
You will then receive the trade license for your business.

Trade License

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.

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What Are The Benefits Of A Trade License?

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.

Checklist For Who Can Apply for A Trade License

When applying for a trade license, there are certain categories of people who can’t apply for a trade license.

  • Minors: A person aged below the age of 18.
  • Criminal Background: A person with a criminal record cannot apply for a trade license.

What Are 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 that is carried out.

Shop License

This type of license is required for those who would like to open a shop or an establishment to sell goods or services.

Industrial License

This type of license is required for a company that wants to open a 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.

How Can We Help You With The Procedure For Registering Trade Registration


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.

What Are The Documents Required to Apply for a Trade License?

When applying for a trade license, one needs the following documents for verification;


  • Form 353 duly filled
  • A letter of consent from the owner or neighbor of business property.
  • The city survey map of the business property.
  • Tax receipts
  • A blueprint of the premises, in case, if the business deals with explosives, timber, and dangerous goods.
  • Other documents that the Municipal Ward Officer may inquire, at the time of registration.

What are the Documents required to renew a Trade License?

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;

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

FAQs on Import Export Code

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 a mandatory requirement to renew this license every year. Failing to do so, can attract a penalty or a fine.
Yes, a Trade License is required irrespective of which line of business you are in. Any business that exchanges goods or services for money, has to have this license. In the case of a restaurant, you require a Food Establishment license.
You can apply for it 30 days prior to the commencement of your business.
If for any reason you are denied a Trade License, you can submit a petition to the Standing Committee with a copy of your denial letter.

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