Trade License


A trade license is a document that provides authority to the business entities to proceed for its business operations. It is issued by the local municipality. To obtain this document, business entity/ establishment has to agree with all the terms and conditions, safety regulations laid by the local municipal corporation and safety authorities respectively.

The filing for this document must be done with commissioner of the municipal corporation of the area. This must be completed within 30 days prior to the commencement of the business activities by the business. The business also has to submit all the necessary documents to the municipal corporation.


Benefits of trade license

  • Legal entity: trade license is essential for any business to be considered as a legal entity.
  • Follow up of rules and regulations: as agreed in the application to obtain the license, the business has to follow all the rules and regulations laid down by the municipal corporation.

Eligibility for the businesses to apply for the trade license

Except minors: those who are below the age of 18 years, and criminal background: any person having a criminal record, every citizen in India can apply for the trade license.


Documents required for new trade license

For the success of the application of the trade license, an individual needs to have the following documents with him:

  • Government ID proof(voter ID/PAN Card/Driving license/Aadhar Card/Rent Agreement)
  • Owned premises- Property tax receipt/Property registration details
  • Rented premises- Self Attested Rent Agreement photo copy/photo copy of Property tax receipt
  • A consent letter from owner of the business property.
  • Business Property's city survey map.
  • In case the business is involved in the deal of explosive goods, timber or any other hazardous/ dangerous goods, then the blueprint of the business premises is required.
  • Any other document required or demanded by the municipal corporation of the area.

Documents required to renew the license

  • The original trade license.
  • All the tax receipts till date with the updated details of the payments.
  • Challans of the past payments.

The time period under which the renewals of the trade license is done is between 1st January and 31st March or every year and varies state to state. The above documents must be carefully collected while applying for the renewal process.


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