All You Need to Know About Starting a Company
A Trade License certificate is a document issued by the municipality which will give you permission to carry on trade or business.It will be given only if your business fulfils certain rules and regulations laid down by the corporation and safety authorities of the state.The application should be made to a Commissioner 30 days prior to the commencement of your business. It is compulsory for every business to have a trade license. You will be penalised if failed to do so before starting a business.
Who can apply for Trade License?
Everyone is eligible for a trade license except those who:
- Are under the age of 18
- Have criminal records
The Different Types of Trade License
Based on the type of trade or business, there are three types of trade licenses one can apply for:
SHOP LICENSEThis license is required by anybody who wants to open a shop. The shop can be of any retail type.
INDUSTRIAL LICENSEThis license is required by any company that wants to open an industrial unit of small or medium size.
FOOD ESTABLISHMENT LICENSEThis license is required by any entity that is going to work into the food and beverage industry. It applies to all restaurants, cafes, meat shops, bakeries and vegetable shops.
The following documents are required while applying for a trade license:
- Form 353 duly filled
- A letter of consent from owner or neighbour
- The city survey map of your property
- Tax receipts
- A blueprint of the premises incase the business deals with explosives, timber and dangerous goods.
- Other documents that the Ward Officer may demand at the time of registration.
The renewals of licences take place between January 1st to March 1st in India.The following documents are required while renewing the trade license:
- The original trade license
- All tax receipts, showing up to date payments
- Past payment challans
Procedure for Trade Registration
You need to fill up form 353 with all required details and submit the above-mentioned documents to the ward office of your local municipality.
The ward officer may ask for some additional details. In that case, you will be required to provide the asked information. If he is satisfied with all the details,the trade license will be issued to you.
- It will take at most 2-3 weeks to get. It will be sent to you via courier.