Trade License

Here’s What You’ll Need

A company without a trade license could encounter numerous problems. Join Zolvit to renew or register today!

• Passport-sized photos and application form
• Aadhar card of the applicant
• Plan showing business, working, washing, and resting areas in a trade building
• For a firm, company, or LLP, a PAN card and incorporation certificate
• Receipt for recent property tax payment
• Owner's consent letter
• Lease Documents
• Neighbor's NOC
• Occupancy certificate (OC)
• Sanctions.

Did you know?

A company that is not licensed may not be allowed to join organisations such as the better business bureau, investment groups, and other business-oriented organisations. The primary purpose of a trade licence is to prevent anti-competitive practices within a locality/municipality.

Overview of Trade License or Registration

To start a business in India, you need a trade license. A trade license is a document that allows you to start a business in a specific trade in a specific area. An entrepreneur is assured of starting a business if the appropriate state government issues a trade license. In addition to not granting property ownership, a trade license does not allow the applicant to trade in only one particular business. Municipal Corporation regulates trade license acts by the State Government and issued after consulting with departments such as health, fire, engineering, etc. An enterprise that obtains a trade license must follow the rules, regulations, and guidelines. A Trade License ensures that an enterprise or business is not engaging in unethical practices or using hazardous materials that may harm those living within a defined area. By issuing it, the government can regulate trade activities across the country.

Benefits of Trade License or Registration

• Increase Credibility

  All businesses generating revenue through their products and services are required to have a trade license. The license assures customers that the organisation adheres to ethical business practices. Additionally, this license increases the entity's visibility within the market in which it operates. As a result, the entity would be able to establish trust among its target consumers over time.

• Improve Financial Aid Exposure

  Funds are needed by every organisation at some point to ensure growth and enhanced productivity. Any entity can obtain loans from financial institutions under a trade license. Trade licenses can be a significant gateway for the seamless inflow of financial aid, thereby triggering the organisation's development. There is perhaps no better benefit of a trade license than this.

• Build Market Goodwill

  An entity's goodwill is another blissful benefit of a trade license. To gain extra profit, many business owners are willing to ignore compliances. These business owners might receive some short-term benefits but struggle to survive in the long run. At the same time, entities with trade licenses are more likely to focus on their core competencies and gain the trust of their target customers. It would also help them lay a strong foundation for their business, which inevitably would improve their goodwill in the target market.

• Motivate Investors

  Credibility and authenticity cannot be gained overnight. For an organisation to reap such benefits, it must comply with the law and maintain compliance at all times. Businesses can even secure significant investments from outside entities eager to inject additional funds to reap fiscal rewards through such commitments.

Checklist for Trade License Renewal or Registration

Trade licenses are eligible for the following conditions:

• A minimum age of 18 is required for applicant
• There should be no criminal record on the applicant
• It should be legal for the business to operate.

How to Get Trade License With Zolvit

A trade license can be obtained online by following the steps below:

• Step 1: Register

  Registration requires the applicant to enter details such as their full name, e-mail address, mobile number, address, etc. You will receive login credentials once all the details are registered.

• Step 2: Filling Application

  Fill out the application form correctly after generating your login credentials.

• Step 3: Documentation

  All the necessary documents must be arranged and submitted after the above step. The concerned authority must duly sign all documents

• Step 4: Verification

  After the applicant submits the documents and application, the Urban Local Bodies Officials verify it. A Unique Application Number is generated after verification.

• Step 5: Payment of Fees

  Fees must be paid once all steps are completed.

Documents Required for Trade License Renewal

• Original trade license
• Dated tax receipts
• Receipts from the previous year.
• Photos of establishments
• Rent agreement, water bill, electricity bill, and lease deed as proof of legal occupancy
• Identification proof: Aadhaar or PAN card

Different Categories of Trade License

• Industrial License: Businesses engaged in manufacturing industries may apply for this license regardless of their size, whether small, medium, or large.
• Shop License: Retail shops require a Shop License to open. Further, businesses engaged in hazardous activities, such as cracker manufacturers, firewood shops, candle manufacturers, etc., must also obtain a Shop License.
• Food and Establishment License: Food businesses, such as hotels, restaurants, food stalls, canteens, etc., require this type of Trade License.

Who Can Issue a Trade Licence?

Municipalities and states grant trading licences in various fields, including manufacturing, construction, healthcare, etc. The Indian government issues a licence in order to stabilise business activities throughout the country. It gives authority to conduct any trading or business based on the location of the industry on its records. According to the rules and regulations of local municipal authorities, the issuance of the licence varies by state.

Validity of the Trade License

A trade license issued by the authorities is valid for one year and must be renewed annually. As soon as this period expires, the entity must apply for the trade license renewal to continue operating in accordance with the applicable laws in the country.

Categorisation of Trade Licences

There are three categories of trade licences, depending on the company's level of risk:

• Low Risk-Based Licence: An industry or company that does not pose a substantial risk would be eligible for this type of license. Hotels and other types of eateries usually consider this license.
• Medium Risk-Based Licence: Small and medium-sized businesses are typically granted this type of license.
• High Risk-Based Licence: Large-scale enterprises and businesses typically receive this type of license. This type of institution is typically exposed to more chemicals and toxins. Surveillance levels on these companies are typically higher than on low/mid-level licenses.

Steps to Renew the Trade License Online on MCD Portal

• Go to the official MCD website.
• Select the zone where your establishment is located on the home page.
• You'll be taken to the new window once you click the relevant option.
• Click 'Online services' in the right panel of the newly opened window.
• You'll find plenty of options on the next page. Click 'Application for renewal of license' under 'Trade and Navigation license'
• You'll be redirected to a new page where you need to enter your license number.

Why Choose Zolvit?

With our expert guidance, you can quickly renew or register your trade license. Our team will help you with the paperwork and registration process. Post-registration compliance and registration are our specialities. We're a full-service company.

Included in the package:

• Whenever you have questions about the Trade License, we are here to help
• We assist you with documentation
• We assist you with the entire registration process
• Post-registration compliance and registration are also our areas of expertise
• Services from start to finish.