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Registration of business gives the legal identity to a business, but without the Trade License running a business would be considered illegal. If any person is found to run a business without it will be penalized. Trade license registration is done by the concerned states based on their rules and regulations.

Once a business wants to start its operations it needs to procure the Trade License 15 days prior to commencement. In some states it is mandatory to apply for the trade license 3 months prior to the commencement of any business activity.   Read More

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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

Important documents required to submit for processing of Trade license Certificate are as follows:

  • Copy of Rental Agreement
  • PAN Card copy for identity proof
  • Aadhar Card for address proof
  • Certificate of Incorporation
  • Occupation Certificate
  • Fire Department NOC
  • Municipal Tax Receipts
  • Registration Certificate under Shop and Establishment Act or Infrastructure development department 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.


  • A business procuring legal license, in whatever form you choose to incorporate the business, facilitates the status and stability to your business that will be attractive to customers and investors.
  • If there is a damage or failure of the business and if you have a Trade License then your personal assets or finances would be safeguarded.
  • If there is a Trade license to your business you can be a part of certain groups which otherwise a person cannot do if it is in his own name
  • Many companies have good business practices, business relationships, investment groups may not agree to join hands if the business is not having a Trade License
  • Trade License is a proof of authenticity that the company is trustworthy and abiding the laws of the government
  • Trade License is a permission granted to see that no kind of unethical business operations are conducted in the residential premises.

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

Documents Required for Trade Licence in India


  • Food establishment license
  • This license is issued for categories related to food like restaurants, hotels, bakeries,Meat shop vendors, canteens, cafes, etc.

  • Industries License
  • Industries License is issued for manufacturing industries, factories, power looms, flour mills, cyber café, etc.

  • Shop License
  • This is basically for trades like barber shop, dhobi shop, timber wood, sale of firewood, candle manufacturer, cracker manufacturer, etc.

    trade license registration


    Trade License Registration is a mandatory permission for a business to run the show legally. This has to be procured prior to the commencement of business operations and also has to be renewed timely. To renew the Trade License you need to visit the government portal and do the following:

    • Accept the terms and conditions in the declaration to the applicant
    • Enter previous year’s application number
    • If the trade license tax for the previous year is not paid, there is a pop up which mentions that
    • Select the financial year of payment
    • With complete penalty applicant has to pay for previous year and the current year
    • Once confirmed current application number is generated
    • Make the payment for the mentioned year
    • Confirmation pop up of amount paid, select the current year for renewal
    • Pay current year amount
    • Enter any previous year application number
    • Confirm your details
    • New application number generated
    • After getting renewal application number through online or MOH office or bank over the counter applicant can pay the trade license tax. Select the payment gateway and click on Proceed for payment button.

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