Process of Trade License
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Documents submission & verification
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We will file the application with the concerned authorities and resolve any queries raised by them.
Trade License issued
Once approved, we deliver you the license at your doorstep.
Trade License is a legal document issued by the municipal corporation or the state government. It gives the permission to carry on a particular trade at a particular location. The enterprise that obtains the license must adhere to the laid down rules and regulations of the authority. The Rules and regulations pertaining to trade license vary from state to state. The trade license also affirms that no illegal activity is carried out in your establishment.
It is essential for all business establishments to file an application with the designated commissioner of the authority 30 days before starting the business. The business has to submit all the mandatory documents during this time period.
Advantages of Trade License
Increase of Creditworthiness
As Trade License is compulsory for all the businesses generating revenue, it gives assurance to the customers that the organisation is a legal bound entity & conducts ethical business practices. Also the license increases organisation’s visibility in the market and hence increases creditworthiness.
Better exposure to funding
Funds are required to promote growth & enhance productivity. So a Trade License can act as a window that ensures seamless flow of funds which would trigger organisation’s development.
An organisation always has to work in the direction of law complying with all the rules & regulations without any deviations. Such kind of commitments can help the business to secure investments by motivating investors.
Limit unethical practices
By holding a Trade Licence, an organisation is under an obligation to discourage unethical practices. Some businesses that indulge in unethical practices like generating faulty invoices, avoiding tax liabilities, exploiting workers, etc can be controlled or limited as there would always be a fear of penalties.
Documents required for Trade License
- Aadhar card of the Applicant
- Latest municipality property tax payment receipt
- Lease documents or consent letter from the owner of the property.
- NOC from your immediate neighbour
- A certified layout plan of your trade building showing the business, working or washing or resting area
- Katha extracts
- Katha certificate
- Sanction plan
- Occupancy certificate (OC)
For Partnership Firm/LLP
- Passport size Photograph of partners
- Address Proof of Partners
- Identity Proof of Partners
- Proof of Place of Business
- PAN Card of Firm
- Partnership Deed
- Certification of Incorporation (In case of LLP)
- Passport size Photograph of directors
- Address Proof of Directors
- Identity Proof of Directors
- PAN Card of Company
- Address Proof of Business Place
- Certificate of Incorporation
Validity & Renewal of Trade License
- A Trade license remains valid for 1 year and is required to be renewed every year between 1st January and 31st March every year.
- The application for renewal of the license is to be done within 30 days from expiry date. The following are the documents required to be submitted at the time of renewal process: Original trade license, Latest paid property tax receipts and Previous year’s challans.
Frequently asked questions
1. How long does it take to get a trade license?
It generally takes 10-15 days to get trade license.
2. Is it compulsory to renew my trade license?
Yes, the government has made it compulsory to renew the license within 30 days of its expiry date. And anyone failing to do so, can lead to a penalty or fine.
3. What is the validity of a Trade License?
Trade License is valid for a period of 1 year.
4. When should I apply for a trade License?
You should apply for a trade license 30 days prior to commencement of your business.
5. What is the period for license renewal?
The renewal period for Trade license starts from 1st January to 31st March of every year.
6. What can I do if my license has expired 3 months (or more) back?
You must fill the renewal form as soon as possible along with the renewal charges and fine (as applicable by the government)
7. Who needs a trade license?
Every trader who is involved in a general trading activity within the jurisdiction of any municipal corporation is needed to get a trade license. However, the class of trade license depends on the nature of the business and differs from state to state.