Trade License

What is Trade License

Every business organization needs a trade license from regulators, be it the municipal corporation or the state government. Trade License is a document that gives permission and certifies you to carry on a particular trade or business for which it is issued. It does not give ownership of property or permission for any other activity other than for which it is issued.

The municipal corporation authorizes license department and allots licenses in consultation with other specific consultative departments like Health, Engineering, Estate and others of the same type.

In perspective of this, it is essential for any business establishments to take primary licenses from the License Department before beginning manufacturing, exchange or storage of any activity. The application has to be filed with the Commissioner in the Corporation 30 days before the start of business. While filing, the business has to submit all the mandatory

Eligibility for a Trade License

Applicant must have attained the age of 18 years Applicant must not have any criminal records Businesses must be lawfully permissible The Trade License is issued by the licensing department of the municipal corporation in different departments like industries, engineering, health, etc. The government of India allows the license in a way to regulate in cities over the country. It permits by the way of letters or documents and certifies to carry on any business or trade wherever it is located. The issuance of the license differs from state to state depending on the local government agencies i.e. Municipals rules and regulations.

Why Trade License

In the last 40 years, trade license has been included in the country and is being governed by municipal corporation acts by the state governments. This benefits in ensuring that no one is individually affected by the nuisance and health hazard of any trade or business. It has been made mandatory by the government to carry out any particular business or trade in a particular area and to ensure that no one is carrying out any wrong business practices. This license creates a harmony in the society that all business is following relevant rules, guidelines and adopting the safety measures. This license was made necessary to make sure that the government can regulate different trade activities in the country. The core purpose of issuing this is to control the locations by restricting the people from executing some types of businesses from their home location to maintain the business environment. Important to regulate the trade to ensure that the citizens are not adversely affected by health hazards & nuisance due to improper carrying of a trade. A medium to ensure that the business is being carried in accordance with the relevant rules & safety guidelines. A Licensed business will have higher goodwill and will attract the customers and investors than an unregistered entity. It protects the owners upon some types of liability. Companies having better business practice attract different investment groups and other business organizations To do ethical business, practice the person can apply for getting Trade License Registration which assures the safety measures and guidelines. If a person does not get a Trade license as needed under the law and begins any business than a government can impose fine and penalty on such person. It can also result in the closing of such a business.

Types of Trade License

There are 3 types of trade licenses that a company or individual can apply for based on the type of trade or business they take forward.