Trade License Application
Trade license plays a pivotal role in guiding businesses towards fair practices and level field play. It renders a clear roadmap on how entities should operate and interact with customers, peers, and stakeholders. It is a mandate for commercial establishments belonging to different domains including, entertainment, food, dental services, production, etc.
You must secure the trade license within 30 days of the commencement of business activities. Falling under the Shop and Establishment Act, a trade license governs several aspects of the business including working conditions, labor management, health hazards, business practices, and environmental impacts. Before applying for this license, you must take a close look at the trade license application and the information it seeks. In the article, we will take a brief walkthrough of this license and learn about the fields it entails.
What is a trade license and who needs it?
A trade license falls under the ambit of the Shop and Establishment Act and is mandatory for diverse commercial establishments. No entities would become operational unless they secure this license before 30 days from the commencement of the business activities.
Generally, the following entities fall under the purview of municipal corporation and hence mandatorily require the trade license to become operational:
- Shops and establishments
- Manufacturing units
- Service providers
- Restaurants and eateries
- Hotels and lodges
- Entertainment establishments
- Wholesale traders
- Retail businesses
- Contractors
- Transportation services
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Trade license application: Underscoring the key particulars
You will see the following fields once you come across the trade license application online on the authority portal:
Applicant details:
In this field, you need to provide the particulars such as name, address, contact information, and identification proof of the organization or individual for the license.
Business Details:
As the name suggests, this field requires you to provide all the information about your business such as type, industry being served, address, legal structure, etc.
Premises Information:
Premises refer to a place of business wherein you operate and make key decisions. The proof reinforcing the premise’s legitimacy includes ownership documents or rent agreements (if the business place is rented)
Trade Specific Information:
The section requires proof depicting the business type and the industry being served. For instance, if your business renders tourism services, you need to provide clearance details issued by the competent authority.
Health and Safety Compliance:
This section seeks details assuring that your business aligns with underlying provisions for fire safety, hygiene, and enviromental protection.
Tax Information:
You need to add the details of tax registration such as GST or other applicable taxes in this section, if applicable.
Supporting Documents:
The section asks you to confirm the availability of the mandatory paperwork, substantiating the identity of the business and the ones running it.
Declaration and Undertaking:
This section requires you to ensure that whatever information you have added to the form is accurate and free from potential error. Also, it seeks your consent that all regulations are being followed, be it a matter of managing labor or providing quotes to the vendors.
Signatures of Authorized Signatory
In this section, the business owner/partner/authorized signatory must add their signature, consenting that all the information has been provided to avail of the license.
Note: These are not standardized fields and hence they can vary as per the business type and specific requirements of the local municipal corporation. Therefore, it is vital for you as an applicant to dig into the application form and render information that is accurate and free from any discrepancy. This helps expedite the application process and ensures swift issuance of license.
10 noteworthy points regarding the trade license application
Although addressing the trade license application is not a hassle any more thanks to the simplified online portal, knowing its nitpicks can help you avoid potential nuisances. With that being said, here are some key pointers about this license:
- The validity of the trade license isn’t standard nationwide. For instance, in Delhi, the license stays valid for 3 years, while in other states it adheres to the validity of one year.
- The license must be renewed before 30 days from the expiration.
- In some states, the trade license is referred to as the Gumusta license.
- Breaching the license’s norms can result in hefty penalties and even closure of the business.
- Do not confuse a trade license with a Shop Act permit. While the former is required for performing specific business activities, the latter is required to open retail outlets depending on the state law.
- Rules that govern the trade license have been formulated within the purview of the municipal limits hence they can vary significantly state-wise.
- The trade license is non-transferable.
- The trade license can help bridge the gap between the entities and potential money lenders, ensuring growth and expansion.
Knowing these facts can help you expedite the filing process while addressing the trade license application.
Where can I find the trade license application?
Every state has a dedicated web portal helmed by the respective municipal corporation that helps file trade license applications. However, you may need to explore a few options on the portal before you get access to the e-form for a trade license. Almost all portals are user-friendly and allow seamless access to trade license applications categorized based on the business type.
Conclusion
A trade license is a mandatory legal permit for all business establishments belonging to commercial settings. While applying for this approval, make sure to have a profound understanding of trade license application and its fields to avert potential delay or rejection.
However, if you are not comfortable dealing with paperwork or legalities, let Adviso be your guiding light. We are the premier agency in India that overcomes legal roadblock for aspiring entrepreneurs seeking to leave indelible marks in their business quest.
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