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How to get Trade Licence in India?

Trade license is the best approach to direct particular business from a specific area. It is managed to guarantee that the native isn't unfavorably influenced by Health Hazard and Nuisance by the disgraceful conveying of an exchange. The trade license permit is a way to guarantee that the way and area in which the business is being carried on is as indicated by the significant principles, gauges and security rules. The arrangement of trade licence permit is set around the State government to screen and manage the exchange inside a city. It is issued by the city enterprise of where business is found. An exchange permit is a consent to bear on a particular trade or business at the premises for which it has been issued. Any unapproved running of Trade is an offense which may bring about a significant punishment and resulting indictment. The entrepreneurs must apply for trade license permit if required specifically region immediately. An application must be made before the beginning of the action. Be that as it may, some state governments permit 15 days - 3 months time to look for trade license permit. Permit once issued requires periodical re-establishment on yearly premise. Application for re-establishment must be documented no less than 30 days before expiry of permit.

Documents Required for Trade Licence in India

  • Lease Agreement in case of premises is on lease/rent.
  • Occupation Certificate for premises as commercial building.
  • NOC from Fire Department.
  • Municipal tax receipts.
  • Registration Certificate from either of the following District Industry Centre/state Industrial.
  • Infrastructure Development department/Shop and Establishment.
  • Photograph, ID & address proof of the manager of the premises as well as authority letter in his favour.
  • ID proof of applicant ( In case of Company It is the PAN card & Certificate of Incorporation)
    • As per Trade category, Three Kinds of Trade Licence are Issued
    • Type A :- For businesses of consumable products and eating houses.
    • Type B :-Trades using motive power to run and to manufacture, like industries, workshops, power rooms, flour mills, cyber cafe etc.
    • Type C :- It is required for Offensive and dangerous trades like charcoal depot, sale of firewood, timber wood etc.
  • Trade license registration is often a time consuming and expensive process as it may be the case that setting up a single business requires multiple types of licenses, depending upon the sector, type of business ownership, a number of employees...etc. Localised licenses are often required in different geographical units with respect to the various taxes imposed on such units.
  • Before entering into business, the first step should be to check out about the licensing requirement and the application procedure. This will save both money and time. If one fails to comply the licensing and permission requirement specified for that locality, you would have to face the complicated situation for your business.

Trade License Points

Must apply for trade lice if required in particular state

Application must be made before the commencement of activity

Licence once issued requires periodical renewal on annual basis

Application for renewal must be filed at least 30 days before expiry of licence

Minimum Criteria for getting a Trade Licence

Person seeking TL must have completed 18 years of age

The business must be capable of performing legal work

The person must have a clean criminal record