Trade License

Trade License is a certificate issued by the municipal corporation to the applicant to start any type of trade or business in a particular area or location. It does not allow the license holder to use the same license for any other trade or business. It is governed by the respective state laws under the Municipal Corporation acts by the state government. It is made necessary to ensure that no person is carrying out any sort of unethical trade practices. Trade licenses are published by the authorized departments of the municipal corporations. Starting a business without obtaining a trade license may result in penalty or even termination of business. The license ensures that license holder is following the relevant rules, guidelines and obeying the safety measures. We can say that Trade license is similar to a driving license which requires a driver to drive a car.

The license department is the authorized administration of the municipal corporation which publishes licenses in consultation with other specialized departments. It is important for business establishments to take fundamental licenses from the License department before starting manufacturing, exchange or storage of any activity/commodity. The application should be received in Municipal Corporation before 30 days of the commencement of the business.

The main motive of issuing trade license is to control trade location by restricting the people from executing certain types of businesses from their home location. It maintains the business environment as well as local environment. Trade license can only be issued to commercial premises where the government has not banned any trade activities.

Private Limited Company

Proprietorship / Trustee

Partnership Firm