Updated on October 14, 2024 11:52:13 AM
A Trade License in India is an essential legal document that allows businesses to commit business activities or trade with other entities legally and maintain safety standards. The Municipal Corporation Act of a respective state issues the Trade License to eligible business owners after verifying required details. Trade License in India is mandatory for various sectors such as retail, manufacturing, hospitality and food industry to ensure health and safety of consumers. Businesses who seek a Trade License in India can apply online with assistance from our experts at Professional Utilities. Our services aid the businesses to apply for Trade License Online without any inconvenience and in a timely manner.
Trade Certificate [Sample]
A Trade License in India permits the businesses to execute monetary activities or engage in deals with other business owners in accordance with the legal framework. The Trade License allows businesses to legally sell or purchase or trade commodities and services. The Trade License ensures that the businesses abide by specific guidelines set by the authority and law to promote consumer trust and credibility. There are various types of Trade Licenses for different categories that can be acquired from the local municipalities of a state. Businesses must meet the minimum standards and required regulations set by the municipal authorities to be granted the Trade License in India.
The Trade License in India ensures that the businesses obey the laws and regulations set by the municipal authorities. Some of the important benefits that businesses get with a Trade License are listed below.
Entities who wish to apply for a Trade License in India may fill out the application form on the official website of the municipal corporation of the respective state with all the mandatory and specified details.
Candidates have to fill out their personal details in the application form.
The information about trade’s premises, description and category is to be filled for Trade License.
The candidates are required to provide details about property, unit area, address of unit and more.
The application form mandates information about establishment, type of constitution, and partner’s list.
Candidates may upload the required and specified documents as per the application form of Trade License.
The application fee of the Trade License is to be paid by the candidates.
Note: After following all the above listed steps, candidates may submit their application for verification. Once the verification is done by the municipal authorities, candidates will be allotted a Trade License which can be downloaded online.
The required documents that the businesses would need to submit to get a trade license are listed below.
The table below displays the fee that is charged by the government for a Trade License and it is categorized as per the localities and size of the infrastructure which will be premised for trades.
| Category | Up to 10 sqm | 10 to 20 sqm | 21 to 400 sqm | Above 400 sqm |
|---|---|---|---|---|
| A and B | Rs 3,968 | Rs 9,919 | Rs 166/sqm | Rs 83/sqm |
| C and D | Rs 2,645 | Rs 6,613 | Rs 132/sqm | Rs 66/sqm |
| E, F, G, and H | Rs 1,323 | Rs 3,306 | Rs 99/sqm | Rs 50/sqm |
Note: Professional Fees to apply for Trade License in India is Rs 7500 exclusive of GST.
Learn about the penalties that the business who do not possess a Trade License in India, or disobey the set rules or continue to trade with an outdated Trade License in India may face:
A Trade License in India provides the permission to the businesses to engage in commercial activities or deals with other businesses with adherence to the legal framework. The Trade License in India is important to ensure that the consumers can trust the business and the entities hold credibility.
Trade License in India holds the responsibility for observing the businesses, to assure the legal obligations prior to executing business of sale and purchase or trade of commodities and services. The Trade License in India has a validity of three years from the date of issuance and can be renewed later on.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
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A Trade License in India permits businesses to commit commercial activities with other businesses and deal in sale and purchase of goods or services. The Trade License in India is available in different categories that can be acquired from municipal authorities.
Yes, the Trade License in India is mandatory for the businesses to engage in commercial activities or deal with other businesses for the purpose of sale and purchase or trade of goods and services otherwise they will face penalties and legal consequences.
Firstly, you have to fill out the prescribed application form with all the required and specified details and upload the necessary documents, then pay the Trade License fee and submit the application, after that the authority will issue a Trade License for you.
No, if any business is being operated without obtaining a Trade License in India then they will face fines and penalties from the municipal authorities which will result in decline of business sales and potentially permanent closure.
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