A license issued or permission granted by the municipal corporation permitting to carry on a particular trade on a particular address. It 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 type of business ownership, activities in which the business is dealing, the number of employees, etc. Localized licenses are often required in different geographical units with respect to various taxes. Trademark registration online must be obtained by the authority before starting manufacturing, exchange or storage of any activity.
How to Obtain Trade License?
Obtaining a trade license is very simple. However, the procedure varies from state to state. The applicant is required to submit the application to the concerned authority (Municipal Corporation). The application is processed within 7-10 days in metro cities. In other smaller cities and rural areas, it takes longer. Once a license is issued by the authority it has to be renewed periodically to ensure that the business is being carried out in accordance with local laws.
Eligibility for getting a trade license
A person must possess minimum age of (18 years)
No criminal records
Business must be capable of executing legal work.
Details required for licensing
Details of business or service center and the owner (Utility Bill, Rent agreement, Fire department NOC) In case the premise is managed by a person other than owner then ID & Address proof of such person is required.
Business or service center address(where the post can be mailed) and other documents as may be required.
Municipal tax receipts.
Pan card of the company.
Importance of Trade License
A licensed business, in whatever form you choose to incorporate the business, provides prestige and an aura of stability to your business that will be attractive to customers and investors.
A licensed business protects its owners against certain types of liability. If damage or injury occurs in the business actions or doings, the personal finances would not be at stake in any settlement. Note that the various types of licenses offer different levels of protection.
A licensed business may provide you with access to certain groups that would s unable to join or participate in if the person operates in his/her personal name. Companies having better business practices, investment groups and other business-oriented organizations may not permit to access the information if the company is not having a trade
The government has made to get trademark registration in India to ensure that one is not carrying out unethical business practices and is following all the safety measures and guidelines.
With a view to discourage any illegal activity and ensure the maintenance of the environment and to ensure that no industrial or manufacturing-related activities are conducted in any residential area.
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