All About Trade License & Its Renewal
A business License is one of the most important documents to establish a company or business in a particular municipality.
What is a Trade License?
A business license is a document/certificate that gives the applicant (the person who wants to start a business) permission to open a specific trade or business in a particular area/location.
Also, he made sure that the business or trade following all the safety standards issued by the Municipal Corporation of the State. Protects residents from health risks
However, the license does not entitle the holder to exercise any other trade or business other than the one granted. Furthermore, this license does not transfer any ownership rights to the licensee.
Why Trade With a License?
In the last forty years, business licenses have been introduced in the country and are regulating by the design government laws of state governments.
Also, It helps ensure that no one is affected by the harassment and health hazards of a business or commercial operation.
The government must have a specific business or trade in a particular area and ensure that no one engages in unethical business practices.
Besides, this license creates harmony in society in which each company follows the relevant rules and guidelines and complies with security measures.
The primary purpose of issuing one is to control locations by preventing people from conducting certain types of business from their home location to maintain the business environment and surrounding area.
Who Can Issue a Trade License?
By the licensing department of the local body in various departments such as industry, engineering, health, etc
Also, the government of India approves the license in a regulated manner in cities across the country.
Grants permission in the form of letters or documents/certificates to conduct business or commerce at your location. The issuance of the license differs from country to state.
Different Categories Of Trade Licenses
Industrial license: small, medium, and extensive production facilities
Store License: Dangerous and offensive digital businesses such as firewood sales, cookie maker, candle maker, hairdresser, laundry (dhobi), etc.
Concession for food companies: restaurants, hotels, snack stands, dining rooms, sale of meat and vegetables, bakeries, etc.
Authorization to apply for a business license: The eligibility requirements to apply for a business license.
Trade License Eligibility
- The applicant must be over 18 years of age.
- Applicant must not have a criminal record
- Also, the company must be legally permitted
- Documents required to apply for a business license
Documents To Apply For Business License
- Proof of address of the business
- Proof of identity of the applicant
- Aadhaar card
- However, PAN of the natural person in the case of ownership, otherwise PAN of the company
- Certificate of Incorporation (MOA) for companies
- Certificate of incorporation of companies
- A final receipt of the municipal property tax if the premises, otherwise a rental agreement or declaration of consent.
- NOC of neighbors (close to the property owner)
- Certified office map
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