Trade license is a kind of certificate or document that permits a company to operate the business or trade activities in the specified municipal limit for which it is allowed and issued. The Trade license is issued by the licensing department of the municipal corporation in various departments like industries, health, engineering, etc. to monitor and regulate relevant rules, regulations, standards, and safety guidelines prescribed by the authority at the city level.
The necessity of Trade Licence:
Every trader who is employed in a trading activity within the specified area of the municipal corporation of any State is required to get a trade license from that authority. The class of trade license differs from state to state and is based on the type and nature of the business in which the trader wants to deal. The objective of the Trade License is to command business locations by way of putting limitations on people from conducting certain types of businesses from their homes to maintain a separate business environment and safeguard the local environment. To ensure that the person is not involved in any unethical business practice and they are respecting and following the relevant rules regulation, safety guidelines that the government has made is necessary to obtain a trade license.
Who Needs to Obtain a Trade Licence:
Trade Licence is not an optional thing it is mandatory for all the commercial business that comes under these categories mentioned below:
- It is mandatory for all establishment or administrative services in which persons employed or mainly engaged in office work.
- A restaurant, hotel, coffee shops or any other refreshing house
- ·A cinema, theatre or any other place of public amusement or public entertainment
Documents required for Trade Licence:
There are certain documents which are necessary to obtain Trade License are as follows:
- In case the applicant is Company/LLP/Firm then the PAN card of the organization is required.
- In case the applicant is an individual then its PAN is required.
- Canceled cheque and Bank statements of the organization or individual as the case may be.
- Colored photograph, PAN card, Aadhaar card, and ID proof and address proof of all Directors/ Partners.
- Certificate of Incorporation, MoA (Memorandum of Association), and AoA (Article of Association) of the company or LLP/Partnership agreement depending upon case to case.
- Document for the proof of establishment.
- No Objection Certificate(NOC) from the landowner.
- Proof that it is not constructed in the un-authorized area.
The Process to Obtain Trade license:
To obtain the Trade license the following steps have to follow by an individual (here we take an example of the process need to follow in Delhi region):
- Go to the website of Municipal Corporation of Delhi(MCD).
- Now select your region from the list i.e. north, south, or east DMC.
- Now you have options you have to choose Trade/Storage licenses.
- Then you have to click on Application for New License and you will now be directed to the application page.
- Fill all the required details and then click on the submit button.
- After submitting now upload the required documents and submit the same on the portal.
- Once the documents are uploaded now it is verified by the ULB(Urban Local Bodies) officials.
- After submitting the application, a unique application number will be generated.
- Now after submitting make the requisite payment to issuing authorities by clicking on the payment tab after notification by SMS or via email.
- Now you have completed all the steps and now an acknowledgment receipt is generated.