What is Trade License?
Trade License is a certificate/document which grants the permission to carry on a particular trade or business for which it is issued. It does not confer ownership of property or permission for any other activity other than for which it is issued.
The License Department is the authorized department by the municipal corporations which issues licenses in consultation with other specialized consultative departments like Fire Brigade, Health, Engineering, Estate and others of same type. In perspective of this, it is important for any business establishments to take fundamental licenses from the License Department before starting manufacturing, exchange or storage of any activity/commodity. The application must be received from the business establishment, 3 months before the commencement of activity. Trade License is valid for the financial year only, at the end of 31st March, this license will automatically be expired and need to be renewed.
Why Trade License is required?
- Important to regulate the trade to ensure that the citizens are not adversely affected by health hazards & nuisance due to improper carrying of a trade.
- A medium to ensure that the business is being carried in accordance with the relevant rules & safety guidelines.
- Different Types of Trade License: There are mainly three kinds of trade licenses like;
- Industries License: This license is for Small, Medium and Large-Scale Manufacturing Factories.
Shop License: This one is for specifically dangerous and offensive trades like a sale of firewood, cracker manufacturer, barbershop and many more.
Food Establishment: Restaurants, Hotels, Food Stall, Canteen, the sale
Eligibility for a Trade License Registration
- The applicant must have more than 18 years of age.
- The applicant must not have any illegal (Criminal and other) records.
- Business must be permissible legally.
NOTE :- Commonly, it takes 7-10 days’ time to process the application of trade license in the metro cities. However, in other rural areas and small cities, it takes longer.