What Is the Expected Time Frame for Receiving the Trade License Certificate?

What Is the Expected Time Frame for Receiving the Trade License Certificate?

 The essential documents you need to start a new business must be considered. A trade license certificate is a very important document. If you want to start a business or trade within a specific municipality, it is crucial to have it.

Trade License Basics

In order to open a business or start trading in a specific location, you need a trade license. This ensures that the company follows the standards set by the state Municipal Corporation.

As a result, all health hazards in the area are protected from the residents. At the same time, the license cannot be used for any other trade or business other than what it was issued for. This license does not pass any property ownership to the holder.

Trade License Benefits

In the country, trade licenses have been introduced for the past four decades and are extensively regulated by state governments through Municipal Corporation Acts. In this way, any trade or business nuisance or health hazard will not adversely affect anyone. Further, the government has made it necessary to operate in a particular area and to ensure that no unethical practices are carried out.

Every business follows the guidelines and adheres to the safety measures when it has a license. It creates harmony in society. To ensure the government could regulate different trade activities in the country, the license was made compulsory.

Licenses are issued to control the locations by restricting the people from operating some types of businesses from their homes in order to maintain the local and business environments.

Trade License: Where Can I Get It?

Various departments of the Municipal Corporation have licensing departments, including industries and health engineering. In other parts of the country, the license is primarily issued by the Government of India. By means of documents or letters, it grants permission to carry on business or trade in the area where it is located. Depending on the local government’s municipal rules and regulations, license issuance varies from one part of the country to another.

Different types of trade licenses

  • License for industry
    This license is available to small, medium, and large manufacturing companies.

  • License for a shop
    Firewood crackers are one of the only trades that require a shop license. Barbers can also obtain shop licenses,

  • License for food establishments
    Hotels, restaurants, canteen food stalls, meat and vegetable bakeries, etc., are eligible for this license.

Who Is Eligible To Apply For A Trade License?

  • For the trade license application, you should meet the following criteria.

  • A minimum age of 18 is required. Criminal records are not allowed.

  • In order for your business to be legal, it must be permissible.

Application for a trade license requires the following documents

Documentation needed to apply for a trade license is listed here.

In order to prove your business’s address, you need to submit some documents.

  • An applicant’s ID proof

  • The Aadhaar card

  • Alternatively, the company’s pan card if you are the proprietor.

  • You must submit a memorandum of association if you are forming a company

  • If you don’t own the property, you can submit the latest receipt for the municipality. A consent letter from the property owner where the business is registered can also be submitted.

  • The neighbors’ NOC

  • Office layout plan certified by the architect

  • A certificate of incorporation is required for companies. Through your local Municipal Corporation, you can apply for a trade license online or offline.

Fees for trade licenses

State government agencies will likely charge different fees for trade licenses in different states. According to the state’s rules and regulations, the state license fees vary. You have to pay a percentage of your annual turnover as a trade license fee in some states’ violence.

A trade license serves the following purposes:

  • To fulfill the requirements of the business, the government issues trade licenses. In addition to this, a trade license is granted for the following reasons.

  • Municipalities and localities use it to regulate business.

  • In a specific municipality, the trade license prevents anti-competitive practices.

  • Business activities can be monitored with the help of the license. Businesses can also be monitored constantly by the local authorities.

  • A Trade License Certificate indicates that the business follows all the practices outlined by the local municipality.

  • In the eyes of consumers, businesses with such licenses are more replicable. Consumers would feel more confident in their services as a result.

  • A license would prevent businesses from conducting business in residential premises.

  • Within a specific locality, the license also regulates the use of environmentally friendly elements.

  • When performing a specific activity, companies with this license form would take all the necessary precautions.

Here are the steps for applying for a trade license:

  • Online or offline applications are required for trade licenses. In the case of the online method, you will need to fill out an application and attach the required documents. In the offline mode, all documents must be submitted to the relevant authority. In the next step, the applicant must fill out the application within the license details.

  • Different states will have different processes for obtaining a license based on their requirements. However, the government has implemented initiatives to make systems electronic in every state. In order to file a trade license online, the applicant must navigate to the prescribed website.

  • Afterwards, the applicant will receive a popup notification regarding the terms and conditions.

  • As part of the next step, the applicant will have to fill out all the necessary details about the trade license.

  • Authentication of documents can be carried out electronically using the online system, which has a specific model.

  • Upon successful registration of your trade license, you will receive a confirmation.

  • Metro cities are faster at reviving trade licenses than rural areas.


Trade licenses are simple licenses or certificates that allow you to operate a business anywhere. Licenses should be issued by a state or local government. This license allows you to open a business in a particular region. To get a trade license, follow the steps listed here. 

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