A trade license is a document that allows you to start your business without any intervention from authorities in a particular area or location.
ESPECIA is a one-stop solution for everything you need to start your business or continue in an uninterrupted environment.
It provides you with every facility at every stage, whether you are in the stage of incubation or near the mark of UNICORN.
Trade license- Overview
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 makes sure 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 –
1. 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.
2. Businesses that have trade licenses are able to attract more customers.
3. The locals are safe from any problems associated with your business.
4. A trade license is a proof that your business is above everybody else, and you can attract more investors for your business as well.
5. 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.
6. A trade license can protect the owner from any unexpected liabilities.
7. You are safe from the objections of the residents of that particular area.
Advantages of trade license online Apply
1. A business that has a trade license is regarded as a legal entity.
2. A trade license gives you legal permission to be in the commercial world without any hesitation, and you are not going to be forcefully closed by any external pressure.
3. It gives you dignity, and you are respected in the business world.
4. The businesses associated with trade licenses follow the rules and regulations described by the authorities.
Eligibility for the trade license online apply-
1. A person who has attained the age of 18 or older is only eligible to apply for trade license registration online.
2. A person who is applying for a trade license online registration should not have any criminal record in the past. Any criminal record can greatly affect your process of trade license online registration process.
3. The business for which the person is applying for trade license registration should be legally permissible.
Trade license fees
The trade license is issued by people around different states of the county. Henceforth, the fees for the trade license differ from state to state.
The local municipality of each state fixes this fee. The rules and regulations that the particular state has been particularly used to determine the trade license fees.
Trade License Application Form Online-
You can easily apply for the trade license with the help of especia
1. The team of especia will assist you on each and every step of your trade license registration process.
2. You have to get in touch with our time and provide us with the necessary documents.
3. We will apply for the trade license online registration on your behalf in order to provide you with the trade license.
Documents required for trade license online registration:
Any business running without a trade license is considered illegal, and every Indian above the age of 18 is eligible to get a trade license.
The documents which are required to start with the procedure of trade license are as follows:
1. Any Id proof of government
- AADHAR card
- Voter id
- PAN card
- Driving license
2. Address proof
- Electricity bill
- Telephone bill
- Gas bill
3. Passport-size photograph of the owner
4. Partnership Deed if it’s a partnership firm
5. Property tax receipt if a business is carried out on your own property
6. Self-attested rent agreement if the business is carried out on rented premises
7. Article’s Memorandum (if it’s a company)
9. Certificate of Incorporation
10. MOA (Memorandum of Association) and AOA(Article of Association) of the company registered by ROC (Registrar of Company) along with the company Incorporation form
11. No objection certificate (NOC) From the land-owning authority
12. Allotment letter from the government agency
13. Bank statement (if necessary)
14. Document proof of the establishment of the trade
15. Legal occupancy document
16. Lease deed of constitution
Processing Time For Trade License Online Registration Process:
The business owner must apply for the trade license within 30 days of the start of the business.
In metropolitan cities like Delhi and Mumbai, the process of trade license registration can take 7 to 10 days.
Still, if the documents are not filled properly in due time per all the rules, the time taken can be 30 to 45 working days. Normally in small cities or villages, the time taken is around 30 to 45 days.
Important points for trade license registration
1. Please make an application for the trade license online registration before you start the business.
2. For the trade license renewal, the application must be made at least 30 days before the expiry date.
3. Your responsibility is to maintain your trade license on an annual basis once it is issued.
Trade license renewal:
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 and property papers
- Address proof for identification
- Aadhaar card
- Challan receipts of last year
Getting in touch with ESPECIA can assist you in the process of trade license registration process to the trade license renewal every year.
Different types of trade licenses-
There are 3 major types of trade licenses issued by people for business-
1. 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.
2. 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.
3. 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.
Trade license-Points to be noted:-
1. 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, then you have to apply for a new trade license registration.
2. The rules and regulations associated with the trade license are different for different states across the nation.
3. The trade license 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.
4. Since businesses with trade licenses have to work within the rules, they adopt ethical business practices.
5. Suppose somebody is running a business without having / applying for a 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.
6. 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 their guardian or local guardian. Then, they can apply for the trade license in their name when they attain the age of 18 years.
7. It is not possible to issue a trade license for a cause that can be troublesome for the locals or residents of the place you have applied for.
8. Not maintaining or renewing your trade license in the given due time can lead to further consequences for the business or trade.
ESPECIA, an organization that provides a one-stop solution for all your accounting and finance-related problems, is located in Delhi-NCR and other parts of INDIA.
Our team comprising specialists can assist you with services like account services, valuation services, ESOP services, CFO services, GST services, India entry services, Company Secretary services, Domestic and International Tax, and Statuary Audit services.
As the owners of a business are very passionate about taking their business to extreme heights, we are passionate about becoming their helping hand, providing them with the best of facilities, be it finance or accounting or solving any problem related to the resource, workload, documentation.
We believe in serving our customers, so both of us grow and learn. We provide our customers with strategic ideas to save time and money and to even maintain a healthy cash flow throughout.
In short, we provide an environment that could help you grow even if you are at the stage of incubation.
Especia can help you with your trade license registration process.