When Will the Trade Licence Certificate Be Received?

When Will the Trade Licence Certificate Be Received?

The essential documents you need to trade must be considered if you plan to start a new business. A trade license certificate is one of the most important documents. Starting a business or trading within a specific municipality is crucial.

Trade Licenses: The Basics

Trade licenses are certificates that allow you to open a business or trade in a specific location. In this way, the company ensures that it adheres to the standards set forth by the state Municipal Corporation.

Residents in the area are also protected from all health hazards. The licence, however, prohibits you from carrying out any other trade or business other than the one for which it was issued. In addition, the licence holder does not become the owner of the property.

The Benefits of a Trade License

Over the past four decades, trade licenses have been introduced in the country and are extensively regulated by state governments through Municipal Corporation Acts. It prevents trade or business nuisances and health hazards from severely affecting anyone. Furthermore, the government has mandated that specific industries or trades be carried out in a particular area and that unethical practices are not carried out.

Having a license creates harmony in the society, since every business follows all the safety regulations and adheres to all the guidelines. Various trade activities in the country are regulated with the help of the licence, which was made mandatory by the government.

 The main objective of issuing these licenses is to maintain the business environment in addition to maintaining the local environment through restriction of certain types of business activities from home.

Read more: what is a trade license

What Is the Process for Obtaining a Trade License?

In addition to industries and health engineering, Municipal Corporation has a licensing department. Licenses are primarily issued by the Indian Government for regulating cities across the country. Permission is granted through documents or letters to carry on business or trade where it is located. Depending on the local government’s rules and regulations, license issuance varies from one part of the country to another.

Various Types of Trade Licenses

  • Licence for industry
    This license is available to small, medium, and large-scale manufacturers.
  • Licence for shops
    Only dangerous and offensive trades, such as selling firewood crackers, require a shop licence. Shop licenses are available to barbers as well,
  • Licence for food establishments
    Hotels, restaurants, canteen food stalls, meat and vegetable bakeries, etc., receive it.

Who Is Eligible to Apply for a Trade License?

  • To apply for the trade license, you must meet the following eligibility criteria.
  • Ideally, you should be at least 18 years old. There must be no criminal record on your record.
  • It is essential that your business is legal.

Fees for trade licences

As state government agencies issue trade licenses, the fees will likely vary from state to state. State license fees are determined by the rules and regulations governing that state. Some states charge trade licenses annually; you have to pay based on your turnover percentage.

A trade license has the following main objectives:

  • Trade licences are issued by the government to meet the requirements of businesses. Additionally, trade licences are granted for the following reasons.
  • Municipalities and localities use it to regulate business within them.
  • Having a trade license ensures that anti-competitive practices are not practiced within a municipality.
  • Business activities can be monitored with the help of the licence. Local authorities can also monitor a business’s activities constantly.
  • A Trade Licence Certificate indicates that the business follows all the practices specified by the local municipality.
  • A consumer’s perception of businesses with such licenses is more similar. Consumers would be more confident in their services as a result.
  • By obtaining a licence, businesses would not be able to conduct business in residential premises.
  • Additionally, the licence defines how businesses are to conduct business within a particular locality in an environmentally friendly manner.
  • When conducting a specific activity, companies with this license will take all the necessary precautions.

The Procedure for Applying for a Trade License Is as Follows:

  • A trade licence can be applied for online or offline. The online method requires you to fill out an application and attach the prescribed documents. Offline mode requires the applicant to take all the required documents to the relevant authority in person and submit them. The application needs to be filled out within the respective details.
  • Different states may have different license application processes based on their requirements. Nevertheless, the government has introduced initiatives to make state systems electronic. To file the trade licence online, the applicant must go to the prescribed webpage.
  • After this, the applicant will receive a popup notification regarding the terms and conditions.
  • In the next step of the process, the applicant will fill in all the necessary information about the trade license.
  • A specific model is used for the online system, and documents can be authenticated electronically. 
  • Once your trade licence has been successfully registered, you will receive a confirmation.
  • The process of reviving a trade license is faster in metropolises than in rural areas.


Trade licenses are simple licences or certificates needed to conduct business in any locality. In an ideal world, the state government or a municipality should provide the licenses. A business licence allows you to operate in a specific region. To obtain a trade license, follow the steps listed here. 

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