Trade License Certificate
Businesses in commercial settings are bound to stay compliant with rules that promote fair practices, safer transactions, and zero harm to humans and the environment. That’s what a trade license certificate requires from businesses. It refers to a compulsory license for diverse entities operating in commercial settings. The type of trade you do will decide what type of trade registration your business will require.
A trade registration requires businesses to operate within the purview of municipal corporation’s guidelines. Securing a trade license also means registering with the respective municipal corporation. In this article, we will take a closer look at the trade license certificate, its eligibility, documents, process, renewal, and norms.
What is a Trade License?
A trade license refers to a legal document that enables businesses to operate within a respective municipal area. Any business in a commercial regime would cease to exist without this license. The municipal corporation of the respective state grants this license against the prescribed application and documents.
A trade license takes note of how businesses operate, transact, and interact with stakeholders and customers. It also oversees the company’s stance toward environmental preservation and protection. A trade license comes with a host of legalities that make businesses law-abiding on almost all fronts.
Different Categories of Trade License
Trade license certificate has three major heads as shown below:
Industries license: The industrial trade license encompasses small, medium, and large-scale production facilities.
Shop license: The shop license spans businesses dealing with dangerous and offensive trades such as (the sale of firewood, crackers, and candles). Besides, barber shops, laundry shops, clinics, and medical stores also fall under this licence.
Food establishment licence:
This licence primarily covers eating house, canteen, food van, bakeries, etc.
Eligibility to Apply for a Trade License
- The applicant must have attained legal age i.e. 18 years.
- The applicant should have a clean track record from a legal standpoint.
- The business should be legal.
How to Apply for a Trade Registration Certificate?
The application for a trade licence certificate can be applied either offline or online. The applicant must ascertain in which municipal area their business resides to avoid any chances of application rejection.
Please note that the application should be filed within 30 days of starting the business. An untimely approach can lead to penalties.
With that being said, here are the online steps to file an application concerning Trade registration.
Step 1: Navigate to the municipal portal.
Step 2: Head to the option stating ‘Citizen online services’ and then choose the trade license option.
Step 3: Explore the option namely the ‘Apply for Trade License’ option.
Step 4: Fill out the e-form with relevant details.
Step 5: Once done, go ahead and upload the e-form alongside mandatory documents.
Step 6: The respective authority shall vet the e-form and paperwork for accuracy.
Step 7: After successful vetting, a distinct ID is generated, which you can use to pay the applicable fee.
Step 8: The authority shall grant the trade license number, reinforcing that the business is now being registered under municipal laws.
Note: Post successful vetting, the authority shall upload the trade registration certificate on the respective municipal portal. Here is how yo can download the same.
- From the home screen, navigate to ‘Citizen online services’>‘Download Certificate.
- Enter the ‘Application Number’.
- Click on the ‘Download’ button.
Documents required for Trade Registration
- Certified layout plan of the office
- NOC of the neighbours (nearby property owners)
- PAN of the individual in case of proprietorship, PAN of the partners in case of a firm or PAN of the company or Limited Liability Partnership (LLP)
- Certificate of registration in case of a partnership firm and LLP
- Aadhaar card
- NOC from the pollution control board and fire department, if applicable
- ID proof of the applicant
- Address proof of the business
- A latest municipal property tax receipt in case the premises are owned, else lease document or consent letter of the owner of the property (NOC) where the business is registered.
- Memorandum of Association (MOA), Articles of Association (AOA) and Certificate of Incorporation in case of companies
- Katha certificate
Trade License Certificate Renewal Online
The trade license comes with a limited validity hence you need to ensure its timely renewal before the deadline arrives. The timeline for renewal would stay active from 1 January to 31 March every year.
Step 1: Head to the city municipal corporation portal.
Step 2: Navigate to Citizen Services>Trade License>Renewal of Trade License.
Step 3: Provide the trade license number and confirm the details that will appear on the following screen.
Step 4: Once done, hit the “Confirm” tab.
Step 5: Upload the mandatory dossiers and click on the ‘Continue’ button.
Step 6: Pay the applicable fees and finally tap on the ‘Apply’ button.
Conclusion
A trade registration certificate is paramount to bring business endeavors into action. Those who belong to commercial settings and serve customers must have this license. Any negligence on account of a trade license can lead to severe penalties. So be vigilant with municipal corporate rules and abide by the underlying requirements to stay compliant.
Read Our Article: Different Types Of Business Licenses In Dubai
