Benefits of a Business Trade License
Securing a trade license is not all about adapting to the legal guidelines, it is also about steadfast adherence to fair business practices. Business Trade license is among the common legal licenses applicable to businesses belonging to commercial settings. Trade license aims to regulate several aspects of businesses within the purview of municipal limits.
These include worker safety, workplace hygiene, work timing, health hazards, environmental impact, etc. Being registered under a trade license encourages entities to pursue fair business practices and ensure the utmost regard for human life and the environment. With that being said, let’s take a walkthrough of the 9 benefits of securing a business trade license in India.
Ensure fair treatment for workers
A trade license promotes the fair treatment of workers no matter their age and gender. It compels entities to take various measures, including reinforcing workers’ safety and well-being, providing adequate ventilation, facilitating rest areas, and minimizing risk from the workspace.
Minimize environment hazards
Commercial establishments are not as proactive as bigger entities towards environmental protection and minimizing health hazards. That’s why trade licenses make them accountable for inhibiting activities that lead to pollution in any form. Trade license prohibits business activities that can cause significant health and environmental hazards.
Overcome discrimination
The Shop and Establishment Act forbids entities to cause any prejudice while dealing with clients, peers, and stakeholders. The business trade license advocates level field playing and fair practices no matter which industry your business serves or what your operation’s capability is.
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Promote growth
A trade license signifies that an entity is law-abiding and has the utmost regard for human life and the environment. This allows investors and peers to interact with the entity without worrying about its reputation or past track record. This, in turn, can pave the foundation for sustainable growth.
Elevate credibility
When you are competing in a cut-throat market, standing out is your only rescue to ensure growth- and trade license plays a huge role in that. The commercial sector in our country is largely unorganized. Thus, staying unregistered is not a big deal for entities owing to feeble legal frameworks. However, this approach can have a drastic impact on the fate on your business and its credibility.
A trade license is a testament to your definite approach toward your business. It reflects that your business is transparent and committed to customer satisfaction with the utmost regard for underlying legalities. Therefore, it is a good idea to secure a business trade license if you wish to elevate the credibility of your business over time.
Cost-effective
Indeed, having a trade license is a big onus on the businessman as it seeks adherence to plenty of compliances. But, that does not mean it would cost you a fortune or attract massive paperwork. Compared to other government permits and registrations, a business trade license will cost you as low as Rs 3000-6000 depending on the state and jurisdiction your business belongs to.
Keeps unregistered entities at bay
Despite stringent business regulations in place, most entities in the commercial sector operate without any registration, posing unprecedented risks to legitimate businesses. Trade license mitigates this gap by levying strict penalties on defaulters, thereby overcoming generic products and services from the marketplace.
Reinforce expansion chances
With growth comes the expansion opportunities and trade license plays a significant role in that. The perseverance to abide by trade license regulations will boost your market presence with time. Furthermore, it will help you connect potential lenders and investors with whom you can discuss growth prospects.
Ample Credit Accessibility
A trade license can be a doorway to ample credit options you use to expand your business. It is worth noting banks typically prefer granting loans to businesses that are legitimate and follow underlying rules. The business trade license can serve as proof that your business is legal to its core, vouching your candidature for much-needed capital.
Conclusion
Running a business is an uphill task as it requires unwavering attention towards fundamental goals and legalities. Securing a trade license is not an option anymore if your business falls under the municipal limits. Once you secure this business trade license, you will start seeing the tangible benefits, as mentioned above, with time.
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