Trade License in Bangalore, Karnataka

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Reading Time: 5 minutes| (Last Updated On: July 31, 2019)

Trade License in Bangalore

Trade License: A person starting any business has to check whether his trade requires some specific license or not. To register a company provisions of the companies act, need to be compiled, The ROC nowadays publishing to have devised a mechanism to incorporate a company within one day provided all the documents are in order. However, our experience suggests that in most of the cases this timeline is not adhered to and approx. a week time is still required. SETINDIABIZ have ready made packages to begin your business as private limited company starting at just Rs. 15000/-. Similarly, LLP can be incorporated by following the procedures laid down under the LLP Act, and a partnership may be a registered one, or you may just begin it without registration, however that would be highly disadvantageous. A proprietorship business can start without seeking any certification what so ever.Trade License in Bangalore

Trade License in Bangalore

Now based on the business model and activity a business would be required to register itself under the goods and services tax act (GST) and start collecting GST while supplying the goods or services. Care must also be taken to see if the nature of the business is such which require some specific license or permission from the government. For example, to do a business of pharmaceuticals a drug license and in case of private security agency business, PSARA registration would be required.

Once an entity is created which have its registered office or any other place of business in Bengaluru, Karnataka, then care must be taken concerning following necessary registrations/licenses

  1. Shops and Establishment Registration with the labour department are mandatory in almost all cases, the purpose of the shops and establishment registration is to create a database with the labour department so that the state government regulates the conditions of labour and employment.
  2. Professional Tax is a state-based law which aims to levy a tax on the specified profession and the employment within the state. Most of the business does require registration with the professional tax department.
  3. Trade License: To ensure that the neighbourhood is peaceful and there is no nuisance creating activity is carried on the municipal corporation of Bengaluru issued a license.

Our current discussion is to discuss at length the what, why and how relating the issuance of trade license in Bengaluru. A license is a permission to do a particular act. Similarly, a trade license is a permission to do a specific trade or industrial activity. Any trading activity listed in Schedule X of the Karnataka Municipal Corporation Act, 1976 cannot be commenced unless a trade license is obtained under section 353 of the Act. The application for seeking the license needs to be made at least 30 days before the date of commencement of the trade within the city limits of the municipal corporation. Trade License in Bangalore

The trade license is not same to that of the shops and establishment registration, and these are different registration. While registration under the shops and establishment act is required to be obtained within 30 days of the start of business, the trade license is expected to be received before beginning the business by making an application at least 30 days prior. The object of shops and establishment is to regulate the working conditions of employment whereas the purpose of trade license is to ensure that public health and safety.Trade License in Bangalore

Trade License

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  • Definition
  • Eligibility
  • Procedure
  • Documentation
  • Pricing
  • FAQ’s
  • Comparison

Though the schedule X is a long list and the schedule of fee further prescribes many other category or sub category which require a trade license and there is different fee which must be paid for each such category or sub category. However, some of the indicative type of trade requiring a trade license is as under

  1. All the eating establishments like hotels, restaurants, canteen, food stall, bakeries, sale of vegetables, meat, provisions store, etc.
  2. Trades which use motives like manufacturing industries, factories, power looms, flour mills, cyber café, etc.
  3. Offensive and dangerous trades like a barber shop, dhobi shop, timber wood, sale of firewood, candle manufacturer, cracker manufacturer, etc.

The onus of making application is on the business owner. However, the owner of the premises can also apply to seek trade license. In the city of Bengaluru BBMP issues, the trade license to shops and industries having the place of business within its jurisdiction. The trade license is premises specific and needs to be obtained from all locations where the business activity is carried out.Trade License in Bangalore

List for not require for trade licenseThe health department of the BBMP is responsible for the issue of trade license and is also empowered to close or seal premises which are being used for the specified trade as per schedule X of the act. The trade license is a significant license, and the trader or industry need to always possess a valid trade license. In cases where two tradesare being run from the same premises then a separate license is required for all such trade license and the government fee payable shall be double the amount, and the relevant amount shall be higher of the fee prescribed for two trades.
A trade license is issued with a validity which expires on 31st March every year, after the expiry of the license same need to be renewed by filing an affidavit that the owner of the business is still running the trade and intend to continue doing the same next year also. There is renewal fee which has to be paid as per the schedule of government fee for the trade license.

The Documents required for the trade license are as follows:

  1. Trade Premises Layout Plan: area one will be using the trade showing details of location, approach, and distance from public sewerage, lavatories, urinals located in the vicinity.
  2. The Id and address proof of the applicant owner of the business
  3. The premises proof with a NOC from the owner of the premises where the trade license is required
  4. Consent of Neighbour, that they have no objection to the conduct of trade
  5. The municipality property tax paid receipt.
  6. The KATHA EXTRACT, It is an account of assessment on yearly basis of the property tax assessment with the details of the property such as its location, size, built up area, etc.

References

  1. Schedule X for the name of trades
  2. Schedule of Fee to be paid for Trade License
  3. Karnataka Municipal Corporation Act, 1976 (Ref Section 353)

New trade license registration work flow diagramRenewal Trade License registration work flow diagram
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About Author

As Co-Founder of SETINDIABIZ & Partner at KPS Legal, I am passionate about Corporate Laws, Taxation, & Intellectual Property Rights. Always Love to meet entrepreneurs and work with them to ensure compliance with the legal regime at all time even if they don't like it!

12 Comments

  1. Hi I have the Trade License Certificate of a shop in Ramamurthy nagar, Bangalore. I would like to know if it is holding a valid certificate. Here are the details:
    TLC No: BBMP/DHO/619/2016-17
    Also have another number N.17180701538827

  2. Hi Mr. Sanjeev Kumar,

    Article is really very informative and required at this hour where most of the people are not aware of the actual law/regulations etc and they are being taken for a raid by the officials.

    It would be great if you could let know on the news paper and the report, where in BBMP has clarified that following shall not require a trade licence. Because even if we show this article to the officials they ignore the same saying no such clarification is given to the newspapers.

    Request to provide the same to substantiate the stand.

    Thks / Bhuvanesh

  3. Hi Sanjeev Kumar,

    Thks for the details. very informative. Could you pls let lnow on the newspaper and the report date in which BBMP has clarified that following shall not require a trade license.

    Thks a ton in advance for your immediate response.

    Thks / Bhuvanesh

  4. Hi I need to start a small scale industries solid block manufacturing factory in bbmp limit .we have a land in bbmp limits .and no other consent houses or neighbours with in 500 mts. Is it possible to get a trade licesence from bbmp .and the land is residential conversion .and what are procedures. Please suggest .
    Waiting for positive response
    Thanks

  5. Dear Members
    Iam bengalurean I need to become real estate broker
    Kindly advice how to apply for real estate broker licence. I need to start immediately.
    Please advice.
    With Regards
    GuruMurthy.A

  6. PC Sreekumaran on

    Dear Sanjeev ji,
    We are already having a shop for mobile and laptop sales and services. So far no trade licence has been obtained from BBMP. Is it necessary to get a trade licence for the above said trade/services ?

    Thanks and regards

    PC Sreekumaran

  7. Praveenkumar N Begur on

    Hi,
    Is Trade License applicable for company that offers Construction Quality Inspection Services for Homes, apartments etc?
    This kind of service is used by apartment and home owners to check for defects and issues in a new or existing apartment prior to buying the apartment.

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