Trade License, one of the important documents to start a business or a trade in a particular municipal limit of India. Rules and regulations pertaining to trade license varies from state to state.
A trade license is a document/certificate that gives the permission to the enterprise to carry on a particular trade or business for which it is issued in a particular area/location. Rules and regulations pertaining to trade license varies from state to state. It does not confer ownership of property or permission for any other activity other than for which it is issued.
Trade license has been introduced in the country which is needed to start any business and trade and is being regulated through municipal corporation acts by the state governments.
It has been made necessary by the government to ensure that no one is carrying out any unethical business practices.
This license was made obligatory to make sure that the government can regulate various trade activities in the country. The core objective of issuing a this is to control the locations by restricting the people from executing certain types of businesses from their home location to maintain the business environment and locality environment.
Different Categories of Trade License
There are three types of trade licenses that a company or individual can apply for based on the type of trade or business they carry out.
In order to apply for a trade license, the applicant is required to make an application in prescribed form and submit the same to the concerned Municipal Corporation along with all the relevant /necessary documents.
Documents that required to be provided depends on the type of business intended to carry on.
The validity of a license issued by the municipal authority is for a period of one year and required to be renewed every year.
The application for renewal of the license is to be made within thirty days from the date of its expiry. I
Following are the documents that need to be submitted for renewal of the license–
a. Original copy of the trade License;
b. Previous year challans;
c. Up to date property tax paid receipt.