Trade License Online - Application & Renewal Process

Why a Trade License is Mandatory for Businesses

The key objectives of a trade license include: 

1. Regulating and overseeing the operations of businesses within specific areas, localities, or municipalities.
2. Preventing the adoption of anti-competitive practices by businesses within designated localities or municipalities.
3. Ensuring that businesses comply with the regulations set forth by the corporation or government.
4. Verifying whether a business is in violation of laws or causing disturbances in society.
5. Monitoring the use of hazardous and other chemical substances in business operations to prevent harm to people or the environment.
6. Encouraging businesses to use environmentally friendly substances and contribute to environmental protection.
7. Ensuring that businesses implement necessary precautions while conducting their business activities.

Government Bodies Responsible for Issuing Trade Licenses

The issuance of a trade license falls under the purview of the licensing department within the Municipal Corporation. This department, which may encompass various divisions such as industries, engineering, and health, issues the license as a formal document or certificate granting permission to engage in business or trade within a specific location. The process for obtaining a license varies from state to state, contingent upon the rules and regulations established by the local government agency, often the Municipal Corporation. For instance, if an individual seeks to establish a food stall in Bangalore, they will need to submit an application to the Bruhat Bangalore Mahanagara Palike (BBMP) for a trade license, as BBMP serves as the Municipal Corporation body governing Bangalore.

Types of Trade Licenses Issued by Municipal Bodies

1. Industries License: Applicable to small, medium, and large-scale manufacturing factories.
2. Shop License: Covers a range of businesses, including those engaged in dangerous and offensive trades (such as firewood sales, cracker manufacturing, and candle manufacturing), as well as establishments like barber shops, laundry (dhobi) shops, computer shops, clinics, and medical stores.
3. Food Establishment License: Pertains to businesses in the food industry, including restaurants, hotels, food stalls, canteens, the sale of meat and vegetables, bakeries, shopping malls, movie theatres, and more.

Eligibility for Trade License Application

1. The applicant must be at least 18 years of age.
2. The applicant must have a clean criminal record.
3. The business proposed must be legally permissible.

Applying for a Trade License

Prospective applicants have the option to submit a trade license application through either online or offline channels. The application process involves applying to the municipal corporation of the city that governs the jurisdiction where the business is situated. The timeline for application submission varies among states; in certain regions, it must be done at least a month before starting the business, while in others, it can be submitted within 30 days of business commencement. The specific timeframe aligns with the provisions outlined in the State Municipal Corporation Act applicable to each respective state.

Online Procedure for Trade License Application

1. Step 1: Go to the official municipal corporation website of the respective city.
2. Step 2: Navigate to the 'Citizen Online Services' section and choose the 'Trade License' option.
3. Step 3: Select 'Apply for Trade License.'
4. Step 4: Complete the registration form with the necessary details.
5. Step 5: Upload the documents that are required and submit the form.
6. Step 6: The authorities will review the application and documents for verification.
7. Step 7: Upon successful verification, a unique application number or ID will be generated.
8. Step 8: Visit the municipal corporation website to make the necessary fee payment.
9. Step 9: Receive the issued trade license number.

Offline Application Process for Trade License

1. Step 1: Visit the municipal corporation office in the specific area where the business is situated.
2. Step 2: Acquire the trade license application form.
3. Step 3: Complete all the requisite details on the form.
4. Step 4: Submit the application form to municipal corporation officials along with the necessary documents.
5. Step 5: The officials will review the application, and upon approval, a unique application number or ID will be assigned.
6. Step 6: Visit the municipal corporation office to make the required fee payment.
7. Step 7: Obtain the issued trade license.

Required Documents for Trade License Application

1. Business address proof
2. Applicant's ID proof
3. Aadhaar card
4. PAN card of the individual for proprietorship, PAN of partners for a firm, or PAN of the company/LLP
5. Memorandum of Association (MOA), Articles of Association (AOA), and Certificate of Incorporation for companies
6. Certificate of registration for partnership firms and LLPs
7. Latest municipal property tax receipt if the premises are owned; lease document or owner's consent letter (NOC) if rented
8. NOC from the pollution control board and fire department, if applicable
9. NOC from nearby property owners (neighbours)
10. Katha certificate
11. Certified layout plan of the office

Trade License Fees: New & Renewal Charges

The fees for a trade license differ from state to state as it is administered by government entities, specifically the Municipal Corporations in each respective state. The license charges are contingent on the regulations established in that particular state. In certain states, trade license fees are levied annually, while in others, they are computed as a percentage of the business's annual turnover. 

Processing Time for Trade License

In metropolitan cities, the trade license will be issued within 7 days to 15 days following the payment of fees. In rural and smaller cities, the issuance of the trade license may take longer, extending up to 30 days after the fee payment. 

How to Check Trade License Application Status

Applicants have the option to check the status of their trade license application on the city municipal corporation website. The process, however, may vary across different municipal corporation websites. Here is a general guide to check the trade license application status: 

1. Step 1: Visit the official municipal corporation website of the respective city. 
2. Step 2: Navigate to the 'Citizen Online Services' section. 
3. Step 3: Select the 'Application Status' option. 
4. Step 4: Enter the application number there and click on 'Get Status.' 
5. Step 5: The status will then be displayed on the screen. 

How to Download Trade License After Approval

To download the trade license certificate, visit the city municipal corporation website. Keep in mind that the process may differ on various municipal corporation websites. Here's a general guide to download the trade license certificate: 

1. Step 1: Visit the official municipal corporation website of the respective city. 
2. Step 2: Navigate to the 'Citizen Online Services' section. 
3. Step 3: Select the 'Download Certificate' option. 
4. Step 4: Enter the 'Application Number.' 
5. Step 5: Click on the 'Download' button. 

Online Renewal of Trade License

Trade licenses granted by the Municipal Corporation have an annual validity and necessitate yearly renewal. The application for trade license renewal should be submitted within 30 days before the license expiration date. Typically, trade licenses in India are renewed between 1 January and 31 March each year. The online trade license renewal procedure is outlined below:

1. Step 1: Visit the official municipal corporation website of the city.

1. Step 2: Navigate to the 'Citizen Services' section.
2. Step 3: Select the 'Trade License' option and choose 'Renewal of Trade License.'
3. Step 4: Input the license number details, and the business details will be displayed on the screen.
4. Step 5: Verify the details and click on the 'Confirm' button.
5. Step 6: Upload the necessary documents and click on the 'Continue' button.
6. Step 7: Complete the fee payment and click on the 'Apply' button.

It's important to note that this process may vary across different municipal corporation websites. 

Documents Required for Trade License Renewal

1. Original copy of the trade license.
2. Previous year's challans.
3. Up-to-date property tax payment receipt.