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A Trade License is a document that is mandatory for every person to operate any kind of business at any location. This is basically permission from the Municipal Department. It is also known as Municipal Corporation License which is issued by Municipal Department to related District or state. However, the owner has no right to start his or her other business on the same license. If anyone wants to operate other businesses from his/her existing license so it is required to modify it and update it to the concerned department. Or, to start the other business, he or she must be required to get another license. Trade License is valid for the financial year only, at the end of 31st March, this license will automatically be expired and need to be renewed.

Trade License

Why Trade License is Required?

This is necessary to regulate the trade to ensure that the citizens are not adversely affected by health hazards and nuisance due to the improper carrying of a trade. It’s the best way to ensure that the business is being carried according to the relevant safety rules and guidelines.

Different Types of Trade License: There are mainly three kinds of trade licenses like;

Industries License: This license is for Small, Medium and Large-Scale Manufacturing Factories.
Shop License: This one is for specifically dangerous and offensive trades like a sale of firewood, cracker manufacturer, barbershop and many more.
Food Establishment: Restaurants, Hotels, Food Stall, Canteen, the sale

Eligibility for a Trade License

a) The applicant must have more than 18 years of age.
b) The applicant must not have any illegal (Criminal and other) records.
c) Business must be permissible legally.

Commonly, it takes 7-10 days’ time to process the application of trade license in the metro cities. However, in other rural areas and small cities, it takes longer.

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