Trade License and Renewal Process
A trade license refers to a compulsory legal permit for businesses belonging to commercial settings. The trade license regulates several aspects of an entity, including workers’ welfare, safety, child labor, workplace hygiene, and documentation of various business undertakings. Trade license requires timely renewal since it adheres to one-year validity. This article extensively covers information about the Trade License and Renewal Process. So without further ado, let’s dive straight in and find details that matter.
What is the Trade license?
The trade license’s history traces back to 1960. With the enactment of this license in the purview of the Shop and Establishment Act, the government seeks to harmonize the business environment by emphasizing human safety and environmental protection. Plus, it takes workers’ well-being and workplace hygiene into account with an increased focus on the safety of neighbors. Further, the license forbids illicit business practices and emphasizes level-field playing.
Who exactly needs a Trade license?
The following commercial establishments must secure a trade license without fail. Knowing which entities qualify for the license is the first step toward learning the Trade License and Renewal Process.
- An established or administrative service leveraging manpower to pursue
- A hotel, eating house, restaurant, cafe, or outlet that offers beverages.
- A cinema, waterparks, amusement parks, resorts, clubs, etc.
- Commercial establishments like warehouses (applicability may vary state-wise)
- Food processing units
- Event management companies
- Hospitals, clinics, diagnostic centers, pharmacies
- Schools, colleges, coaching centers, training institutes, etc
- Salons, spas, beauty parlors, wellness centers, gyms, etc
An overview of trade license renewal application
The trade License and renewal Process is closely related to different time-bound permits like health trade licenses, Shop Act licenses, etc. The trade license must be renewed before 30 days from the expiration date. The applicant can visit the respective municipal portal to file the renewal application. The renewal e-form shall entail the following fields.
- Category of Shop
- Name of Shop
- Owner’s name, gender, and age
- Contact number
- Registration number
- Ward number
- Pan number
- Holding number
- Business address
- Area of the Shop
- No objection from the Holding owner
Documents consideration for trade license renewal
While scraping every detail around the Trade License and Renewal Process, it is important to pay close attention to the documentation part. With that being said, keep the following documents handy before delving into the renewal process.
- Owner’s Address and ID proof.
- Incorporation documents such as MoA and AoA.
- Cancelled bank statement and cheque
- Tenancy or ownership proof of the business place.
- NOC from the landlord if the establishment is rented.
- Original registration copy
- Old G-8 receipt
What regulations does a trade license impose?
When examining the Trade License and Renewal Process, it is safe to know the operational compliances. The following norms are mandatory for the trade license holder.
- The manpower hired to uphold business activities cannot work beyond the stipulated daily timeline, which is 8-9 hours in most cases.
- The working hours must include some rest time.
- The working employees should have access to weekly and festive holidays.
- Entities are forbidden from leveraging child labor.
- Reimbursement of overtime served by workers is mandatory.
- Paid leave arrangements should be there as per the Act’s guidelines.
- Voluntary action is strictly prohibited when it comes to termination of services.
- Businesses must ensure apt maintenance of records, registers, log books, etc.
- The floor plan of the working area must have an evacuation to mitigate potential mishaps that pose a threat to human life.
- The notification board must be there to notify workers and employees about important announcements and activities.
FAQs around Trade License and Renewal Process
Q 1: How do I renew my trade license in India?
A: You can visit the online portal of the respective municipal corporation and file the renewal application.
Q2. What is the validity of trade license in India?
A. The validity of trade licenses differs state-wise, though, in most states, its validity is 1 year.
Q3.What is the last date for trade license renewal in Kerala?
A.The last date for trade license renewal in Kerala depends on your local municipality’s regulations.
Q4.What is the cost of the trade license in Odisha?
A. The cost of a trade license in Odisha varies depending on the type of business.
Q5. What is the validity of trade license in Odisha?
A.The validity of a trade license in Odisha is usually one year.
Q6. Is trade license mandatory in Uttar Pradesh?
A. Yes, a trade license is mandatory in Uttar Pradesh for conducting business activities.
Conclusion
Understanding the Trade License and Renewal Process is vital to ensure a hassle-free business journey. It is evident from the above that the renewal process for a trade license is relatively simple and entails simple steps. With that being said, it is important to pay attention to documents and their accuracy while applying for such a license as any error or discrepancy in paperwork can lead to application rejection. If you are not comfortable dealing with registration or renewal legalities, you can connect with Adviso’s professionals without any second thought.
Read Our Article: 7 Key Benefits Of Trademark Registration
