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Trade License in India

Trade License is a license or permission issued by municipal corporation granting permission to carry on a particular business at a particular address. It ensures that the citizens are not adversely affected by health hazard and nuisance by the improper carrying of trade

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Trade License Requirement in India

Trade license is the way to regulate specific business from a particular locality. It is regulated to ensure that the citizen is not adversely affected by Health Hazard & Nuisance by the improper carrying of a trade. The trade license is a means to ensure that the manner and locality in which the business is being carried on is according to the relevant rules, standards and safety guidelines. The provision of trade license is laid down by the State government to monitor and regulate the trade within a city. It is issued by the municipal corporation of the place where business is located. A trade license is a permission to carry on a specific trade or business at the premises for which it has been issued. Any unauthorised running of trade is an offence which may result in a substantial penalty and subsequent prosecution. The business owners must apply for trade license if required in particular area without any delay. An application must be made before the commencement of the activity. However, some state governments allow 15-3 months time to seek a trade license. Licence once issued requires periodical renewal on annual basis. Application for renewal must be filed at least 30 days before expiry of licence. The process of Trade license registration is often a time consuming and expensive process.

Key Point of Trade License

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Why Trade License
To safeguard the public at large against the health hazard and nuisance which a trader / business may cause. Trade license is a method to regulate the trade and to ensure compliance with rule and safety guidelines issued by government
 
 
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Who Need Trade License?
Every trader engaged in a general trading activity within the territorial limits of any municipal corporation is required to obtain a trade license. The class of trade license differs from state to state and is based on the nature of the business.
 
 
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Licensing Authority for Trade License
Trade License(s) are issued by the authorised department of a municipal corporation in consultation with other specialised departments like fire brigade, health, engineering department having jurisdiction over the business.
 
 
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Objective of Trade License
The objective of Trade License is control business locations by way of putting constraints on people from running certain types of businesses from their home to maintains the separate business environment and preserves locality environment.
 
 
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Commercial Premises
Trade License can be availed only if the business is run in the Permitted area. I.e. a Commercial, Local commercial, Notified Commercial, Mixed Land Use or Residential area with small shops of maximum 20 sq.m. on ground floor only.
 
 
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State wise Application of TL
While some state has made it mandatory to obtain a trade license, but in some states it is optional. The kind of license and license fee also differs from state to state. Some states charge a monthly fee while others charge a % of the turnover.
 
 
Documents Required for Trade License

Pan Card of the establishment in case of company, LLP or Firm.

Canceled Cheque and bank statement of the establishment

Certificate of Incorporation, MOA and AOA of the company or LLP/ Partnership Agreement as the case may be

Premises Proof of the establishment in the form of Sale Deed, Electricity Bill/water bill and NOC from owner.

Colour Photograph, Pan card and ID Proof and Address Proof of all Directors/ Partners

Front-Facia Photograph of the establishment with Display of goods traded from the premises

Site/Key Plan Showing the area under the occupation of the applicant earmarking the neighbourhood of the site.

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nikhil-chandra
Mr. Nikhil Chandra

Co Founder, Prinik Lifestyle
retail Pvt Ltd

"

Team KPS is be Professional with a Dynamic Team & Multiple skills offering Great Value ! We have engaged KPS for all areas of our Business & they would be our key partners when We go Public in a few years !

sunny-bajaj
Mr. Sunny Bajaj

Founder & CEO at Pivot Bits
Technologies Pvt. Ltd.

"

KPS has helped us in Registration of Pvt Ltd Company and they have been very professional in handling all the matters. They know what has to be done and how to deal with it. Praveen has been available for queries all the time. Highly appreciated

sam-varughese
Sam Varughese

Founder / PresidentProject
Management Quotient

"

I wish to place on record the excellent services and support provided by the team of KPS Corporate Consultants in the creation of my company and recommend you to all those interested in such services.