It is essential for every business that carries out a trade to have a Trade License. We, ‘Vakilsearch’ help you get this registration done at the local municipality easily and simply.
A Trade License is nothing but a legal certificate/document issued by an authorised body (local municipality, in most cases) of the State Government. It authorises the applicant (a person or party) to start business operations in a specific location or area. The enterprise that obtains the license must adhere to the laid down rules and regulations of the authority. The trade license also affirms that the business is not practising any unethical methods that may potentially harm people living in the defined locality/area.
The application should be filed with the designated commissioner of the authority at least 30 days before starting the business. The applicant/enterprise should submit the mandatory documents during this time period.
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.
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;
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;
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