Trade license Registration:Everything you need to knowby Swarit Advisors Financial Service Consultant
Trade license or corporation license is a document that allows an individual to start a business. The business could be of any type. It is regulated by the State governments of the concerned states under the Municipal Corporation Acts. Trade License Registration is compulsory before starting any business. it is illegal to run a business without proper registration.
Trade License Registration Process
The steps involved in the
Trade License Registration process are as follows-
- Choosing the category of the business.
- Filling up and applying to the concerned Municipal Corporation along with all the necessary documents.
- The license will carry a validity of one year after which it has to be renewed.
- The application needs to be filed within 30 days of starting to operate a business.
License Registration Fees
The cost of the trade the license depends on the company from where the individual is applying for the
methods for Trade License Registration
The payment for Trade
License registration can occur in two major ways:
- At the
MOH bank or office
for Trade License approval
Documents Required for
Trade License Registration
The crucial documents for Trade License must be submitted by the applicant to
the Municipal Corporation situated where he intends to start his business. After
the approval of the documents, the Municipal Corporation issues the license.
- Application of the trade license form
- Municipality Property Tax Payment Receipt
- Aadhaar Card
- Form 353 duly filled
- Letter of consent from the owner
- Lease documents
- A blueprint of the premises for certain types of businesses
- Tax receipts
- Sanction plan
- Occupancy certificate (OC)
- City survey map of the property
- Other compulsory documents
- Individuals who are above 18 years’ old
- Individuals who do not hold any criminal record
- The goods sold should not be illegal
of Trade License
It is a necessity for
individuals to start a business only after receiving the trade license and not
before it. It has been made compulsory for the purpose of regulating the
business in an appropriate manner.
An advantage of a trade license is that it ensures that the products sold in that particular business is entirely safe from all kinds of health hazards for the public.
Once acquired, the businesses require to run according to certain rules and regulations and also maintain a certain standard when it comes to the kinds of goods sold and services provided.
The individuals who wants
to start a company are aware of the fact that in order to before applying for a
trade license, they need to make a choice between the trade licenses as they
are categorized into three types.
Industries license is
essential for the small, medium and large scale manufacturing factories.
Shop license is required if
the business deals with the sale of hazardous products like Firewood, Fire
crackers manufacturing, candle manufacturing. Barber shops and laundry shops
also need to acquire this type of license.
An individual or a group of
individuals that want to start a food or a beverage business, require to apply
for a food establishment license.
Restaurants, hotels, food
stalls, canteens, bakeries, shops selling meat or vegetables all fall into the
category of a food license.
In order to start a
Restaurant or any business similar to that, some other necessary licenses are
required, apart from the trade license. Let’s go through some of those
- Food Safety and Standards Authority License - FSSAI
- Liquor License
- Health/ Trade License
- Eating House License – It is provided by the Licensing Police Commissioner of that city where the outlet is supposed to open.
- Shop and Establishment Act- A compulsory registration under the Act is required before starting a food business in India.
- GST Registration: One of the mandatory registrations is to register under GST in order to ensure a smooth and hassle-free run of the restaurant.
- Fire department
- Lift clearance
- Environmental Clearance
- Music License
- Signage License
Advantages of Trade License
- A business that has a Trade License enjoys goodwill and attracts a large number of customers and investors as compared an unregistered business.
- It protects the owners against various types of liability.
- Companies perform better with regards to business activities and thus attract many investment groups and other business organizations.
- The business becomes legal after obtaining the License. The
License ensures safety measures and guidelines.
- If a person does not receive a Trade license and startthe business than theGovernment will impose fines and penalties on the individuals. It can also result in the closure of such businesses.
The businesses need to renew the trade license every year. The application for renewal should be made 30 days before the commencement of the year for which the license is obtained.
required for Trade License Renewal
- Original copy of the current Trade license
- The receipt of previous year fines
- Receipt of the tax paid recently
License Renewal Duration
Trade license renewal is
done between 1st January to 31st March every year.
Created on Feb 19th 2020 03:48. Viewed 538 times.