The Trade License is a permission granted to carry out business issued by the Municipality and running of any unauthorized trade is an offence which may result in a penalty and prosecution. The registration of Trade License in India is essential and mandatory for every business person who wants to conduct business. Because of this license, the Government can regulate various trade activities in the country. This license creates harmony in the society that every business should follow all the guidelines, safety measures, or rules and regulations. The rules, time-limit, procedure, and fees structure for trade license varies from state to state. Scroll down to check more information regarding Trade License in India.
Importance of Trade License in India
The Trade License is permission to carry out business by the Municipal Authority. Trade License in India is crucial because of the following reasons:
It monitors the business operating in a particular locality.
It regulates the business by putting restrictions on some commercial activities.
It also monitors the responsibilities of an entrepreneur in connection with the business.
The license ensures that there is no harm to the health of the general public due to the improper conduct of business.
A license holder is assumed to be certified that there is no illegal activity, no unethical trade is conducted.
What are the eligibility criteria to obtain a Trade License in India?
Below is the eligibility criteria to obtain trade license for the business in India:
The applicant’s age must be 18 years or above.
There is no criminal record of the applicant.
Trade License in India can be allotted if the business is conducted in a permissible area such as Local Commercial, Notified commercial, and commercial.
Residential areas with small shops of the maximum area of 20 square meters on the ground floor.
Business must be legally permitted under other laws and statutory provisions.
Documents required for the registration to obtain Trade License in India
Following are the documents needs to be attached with an application for registration to obtain Trade License:
Address proof such as the latest electricity bill, water bill, or telephone bill, etc.
Identity proof such as Aadhar card, Voter Id, Passport, Driving License, etc.
Affidavit
Bank statement and cancelled cheque.
Property Tax and Income Tax return.
Lease Deed of the premises.
Necessary Documents required for the renewal of a trade license.
Submit Certificate of Incorporation (COI), Memorandum of Association (MOA), and Article of Association (AOA) is required in case the applicant is company.
PAN of the company.
Submit an Aadhar card and PAN card of the applicant.
No Objection Certificate (NOC) from an immediate neighbour for carrying such business or trade.
Proof of latest municipality tax paid such as a receipt, tax invoice, etc.
Katha Certificate and extracts.
Plan layout of sanction plan.
Application as per the prescribed form.
How to obtain Trade License in India?
You can obtain a Trade license registration online. The official websites for applying online varies from state to state. For applying online follow below-mentioned steps, these are similar throughout the states:
Step 1: An applicant apply for licensing in the respective Municipal Corporation.
Step 2: Then, visit the website of respective State Municipal Corporation and click on "Citizen Services" option.
Step 3: Click on to apply for the online license; the applicant can register and fill all the personal details.
Step 4: After submitting the details, a registered User ID and Password is generated.
Step 5: Then login with the User ID and Password to apply for a new license.
Step 6: Fill all the credentials mentioned in the form such as NOC, type of business, property tax details, etc.
Step 7: Once it is filled, upload all the required documents and click on to the submit button.
Step 8: After submitting the application form, the Urban Local Bodies officials verify the application and all the documents.
Step 9: After that, an automatic Unique Application Number (UAN) will generate.
Step 10: The page will redirect to payment, you have to pay the prescribed fees by clicking on the Make payment.
Step 11: Once the payment is made, the license number will issue.
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