Trade License Registration: Why Is It Necessary?

Trade License Registration: Why Is It Necessary?

Starting a business or a trade in a municipal area requires a trade license, one of the most important documents. By obtaining this document, you will be able to legally operate your business in a specific area. Trade licenses are authorized by the government. A zoning ordinance mainly ensures that no nuisance or health hazard issues will affect any of the people in the area where the business is being held. Thus, it is very important to do the online trade license registration in order to be able to start a successful business.

Why It Is Important To Have A Trade License?

As far as a trade license is concerned, it is primarily intended to control the activities of businesses that are operating within a particular area or region. The purpose of this is in order to regulate the activities that are carried out in a business, as well as checking if anything is happening that is causing harm to the residents of that area as a result of those activities.

The need for a trade license is very important since it is the only way to prove that the business you are entering into is not fake and that it is under the strict vigilance of the government. There are several reasons why you would need a trade license. The main reason is that your business will have the assurance that you are conducting your business in accordance with all the major rules, regulations, and safety measures as stated by the government. In this regard, it is recommended that you register your trade license in Gurgaon as soon as possible instead of wasting your time.

Trade License Application Documents

If you intend to operate your trade or business in a particular municipality, make sure to submit the below-listed documents while applying for a trade license.

  • PAN Card
  • Aadhaar Card
  • Payment receipt for property taxes
  • Form for application
  • Obtain a consent letter or lease documents from the property owner
  • You must have an incorporation certificateyou already have one
  • Obtain a letter of consent from a neighbor who lives close to the area where your business is located
  • Building layout where you will operate your business
  • Sanctioned plan
  • Khata extracts
  • Occupancy certificate
  • Khata certificate

How to Renew a Trade License?

The trade license you issue for your business will be valid for one year. Your trade license must be renewed every year. Your trade license must be renewed within 30 days of its expiration date. Your licensing fee may increase by 50% if you delay the application process.

Renewal of your trade license requires the following documents:

  • Challan from the previous year
  • Property tax receipt updated
  • A copy of your trade license in its original form

If you are unable to do it yourself, you can also hire a trade license service. Renewal of your trade license will be made easier by experts in such services.

Trade License Penalties

Every registered business must adhere to various rules and regulations. Penalties will be imposed if you do not comply. The following are some of the penalties.

  • The license renewal process is subject to a fine of 50% of the license fees if there is a delay.
  • Any violation of the license terms will result in a huge penalty charge.
  • It is possible for your license to be revoked or canceled if your business damages the neighborhood or surrounding areas.
  • Legal action will also be taken if there is any discrepancy.

Your business needs a trade license now that you know how important it is. To avoid penalties, make sure you obtain a trade license before starting a new business. 

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