A trade license is a legal document which is issued by a state government authority that allows you to operate a business in a certain place or location.
This business trade license also certifies that the locals or residents of the particular location are free from any type of danger that a business can cause.
It ensures that the citizens residing in that area are not adversely affected by any health hazard related to your business.
Or a trade license gives a clean chit to the individual or a group of individuals to operate their business without any interruption.
Benefits of having a trade license
- A business with a trade license enjoys the goodwill of people because it has a legal document that allows it to work in an uninterrupted environment.
- Businesses that have trade licenses are able to attract more customers.
- The locals are safe from any problems associated with your business.
- A trade license is a proof that your business is above everybody else, and you can attract more investors for your business as well.
- If you don't have a trade license, then the government has the authority to charge hefty amounts to you, which could even lead to the shutdown of the business.
- A trade license can protect the owner from any unexpected liabilities.
- You are safe from the objections of the residents of that particular area.
Trade license renewal online – An Overview
Each business must apply for trade license renewal between 1st January and 31st March every year.
The perfect time to apply for a trade license is approximately 30 days before expiry.
Any delay in this can cause upto 50% more than the usual trade license fees.
The following documents are necessary for the trade license renewal process-
- Copy of trade license
- NOC ( NO OBJECTION CERTIFICATE ) and property papers
- Address proof for identification
- Aadhaar card
- Challan receipts of last year
- PAN card along with the documents of formulation of the company ( if required )
- Copy of the lease agreement
- Payments receipts for the last year
- Documents for occupancy
- Documents required for sanction
Process of Renewal of the Trade License online ( in INDIA )
- The process of renewal of a trade license in India usually occurs between the 1st of January and the 31st of March.
- The licenses which are issued for the purpose of business are to be renewed every year. The validity of the license for the purpose of business is 1 year or 12 months in INDIA.
- The application for the online trade license renewal should be submitted within 30 days of the trade license expiry date.
- If this process for applying for the trade license is extended beyond the limits, then some amount in the form of a late fee is to be submitted to the municipality.
- The process of renewal of an online trading license may differ from state to state.
- Different people doing business in different states across the nation have to follow the rules and regulations imposed by them.
- You can log in to the official website of the state in which you have an undergoing business.
- Then apply for a new application to renew the trade license.
- All these processes take place under the municipality of the state you are residing and doing your business in.
- Submit or Upload all the required documents.
- Pay the renewal fee.
- You can renew your trade license after successfully completing the process and verifying all the documents.
Since this process is continued on different websites for different states across the nation, you have to apply on the website of the state where you are doing your business.
For example, suppose you live in Delhi, and you do business in Delhi. In that case, you can apply for a trade license online renewal on the MCD, i.e. Municipal Corporation of Delhi and follow the above-given steps to renew your trade license.
Points to be noted – TRADE LICENSE ( Key Takeaway )
- The trade license issued by the municipal authority of a state is particularly for trade or business. The trade license that an individual issue for a particular business cannot be used for any other type of business by that individual. If you want to change the type of trade or business, you must apply for a new trade license registration
- The rules and regulations associated with online trade license renewal differ for different states nationwide
- The trade license renewal fees are not only linked with state municipalities but are also affected by the type of business for which you are issuing the trade license
- Since businesses with trade licenses have to work within the rules, they adopt ethical business practices.
- Suppose somebody is running a business without having/applying for / renewing the trade license. In that case, the government authorities can charge hefty amounts to the business, and the consequences can even lead to the closure of your business.
- As a person below 18 years of age is not allowed to apply for a trade license, in this case, the business for that particular individual can be operated in the name of his or her guardian or local guardian. Then, they can apply for the trade license in their name when they attain the age of 18 years.
- It is impossible to issue a trade license for a cause that can be troublesome for the locals or residents of the place you have applied for.
- Not maintaining or renewing your trade license online in the given due time can lead to further consequences for the business or trade.
FAQ Related to Renewal of trade license online in india
1. What is the time period in India to renew a Trade license online?
The trade license issued for the purpose of business comes with a validity of 12 months in INDIA. The renewal process takes place between the 1st of January and the 31st of March every year. Applying for renewal within 30 days of the expiry of the trade license in INDIA is mandatory.
2. What are the different types of trade licenses?
There are 3 major types of trade licenses issued by people for business-
- Shop license- it is a license which is required to open a shop, be it a barber, cobbler, retail shop, clothing shop, showroom, cosmetics etc.
- Industrial license- this is issued particularly by industries like small-scale or large-scale manufacturing industries, cyber cafes, factories etc. Small, medium and large-scale industries are all included in this category of the trade license.
- Food license- this is issued by people who have a business related to food like hotels, restaurants, bakeries, canteen in schools, colleges, vendors selling fruits, vegetables or meat etc.
3. To whom do you have to apply for trade license renewal?
The application for the renewal of your trade license is to be submitted to the concerned municipality, i.e. to the municipality of the state where you have an ongoing business. Hence, you can easily renew your trade license.
Contact Us for Trademark Registration Online, Service Tax Registration, GST Registration Online, Accounting Service For Startups , ESOP Services in Delhi, Noida, Gurgaon, and all across India: write to us at firstname.lastname@example.org. Or Call On :(+91)-9711021268 +91-9310165114