What is a Trade License?

A trade license is an official authorization or permit issued by a governmental authority that allows individuals or businesses to engage in specific types of commercial activities within a particular jurisdiction. It serves as a regulatory measure to ensure that businesses comply with local laws, regulations, and safety standards while conducting their operations. Trade licenses typically specify the type of business activity permitted, the location where it can be conducted, and any conditions or restrictions imposed by the issuing authority. Obtaining a trade license is often a mandatory requirement for starting and operating certain types of businesses.

Process of Trade License

• Arrange all of the documents needed for shops and establishments in order to prevent any problems or obstacles.
• Submit an application in the prescribed form to the area's Inspector within 30 days of the business's incorporation date, along with all supporting documentation.
• When the inspector receives the application, he meticulously studies it and checks the information and papers in it
• After the application has been successfully verified, the Inspector will issue the applicant a Certificate of Shops and Establishment Registration.

Advantages of Trade License

• A trade license demonstrates that a business is operating legally and in compliance with local regulations. It helps build trust with customers, suppliers, and other stakeholders by showing that the business meets government standards and requirements.
• Holding a trade license provides legal protection for the business owner against potential fines, penalties, or legal actions for operating without proper authorization.
• Customers, suppliers, and financial institutions see a business more favorably when it has a trade license.
• Trade licenses often involve compliance with health, safety, and environmental regulations, ensuring that businesses operate in a manner that protects public health and safety.
• It establishes the legal framework within which business transactions are conducted, making it easier to resolve disputes and enforce contractual obligations.

Required documents for Trade License

• Certificate of Incorporation
• MOA and AOA of the company, LLP deed/ Partnership deed
• Business PAN card
• ID proofs, address proofs, of the owners (partners/ proprietor)
• Address proofs, ID proofs of the directors / managers / designated partners
• Name and address proof of the establishment
• Owner’s photograph and picture of the establishment
• Board resolution or partners' consent to get a trade license
• Copy of any other license, permit, registration that the business mandatorily requires
• Copy of any additional license, permit, or registration that the business requires