Thinking of starting a new business and wondering what kind of paperwork you’ll need and process you will need to follow? One of the most crucial documents for starting a business or trade in a specific municipality is a Trade License.
Let us give you a quick overview of the trade license and its advantages.
Introduction:
A trade license is a document or certificate that authorizes an applicant to start a specific trade or business in a given area or place. The trade license holder is prohibited from using it for any other work or business or international trade. To begin doing business in a certain area or location, a state, corporation, or municipality will need to obtain a trade license from the concerned central or state government. To get registration, the applicant must first be aware of the jurisdiction in which the business is conducted and the appropriate Act.
Eligibility for getting Trade License:
To be eligible for a trade license, the applicant must be over the age of eighteen.No criminal history, liens or encumbrencies on the candidate or company.Legally, the type of business must be authorized.
Documents needed for the registration of a trade license:
To apply for a trade license, the applicant must fill out an application and submit the documents listed below to the appropriate municipal authorities.
[Insert your application in the appropriate format.]
- If the applicant is a firm, LLP, or company, they must submit a PAN card and proof of establishment.
- A cheque that has been cancelled, as well as the establishment’s bank statement.
- As the case may be, the company’s Certificate of Incorporation, Memorandum of Association, and Articles of Association, or the LLP/Partnership Agreement.
- Premises proof in the form of a sale deed, an electric/water bill, and a letter of authorization from the owner.
- All Directors/Partners must provide a color photograph, a Pan card, and proof of identification, as well as proof of address.
- Photograph of the establishment from the front, with a display of things sold on the premises.
- Site/Key Plan indicating the applicant’s occupied area as well as the site’s immediate surroundings.
You can apply for a trade license online or in person at your local municipal government.
The Purpose of a Trade License:
A Trade License aims to regulate business locations by prohibiting people from operating certain sorts of enterprises from their homes, thereby maintaining a separate business atmosphere and preserving the local environment.
Who has the authority to issue a trade license?
It is issued by the municipal corporation’s licensing department in numerous departments such as industries, engineering, and health. The Indian government authorizes the license in order to regulate in cities around the country.
Conclusion:
Before the start of the activity, an application must be submitted. On the other hand, some states provide you 15 to 3 months to apply for a trade license. Once a license has been issued, it must be renewed on an annual basis. At least 30 days before the license expires, a renewal application must be submitted. The procedure of obtaining a trade license is frequently time-consuming and costly.
A trade license status is valid for one year and must be renewed every year, usually between January 1 and March 31. Renewal applications must be submitted within 30 days of the expiration date; otherwise, a new license must be obtained.
Renewals necessitate the following:
1. The most recent trade license
2. Challans (proof of credits to an account) from the previous year
3. A copy of the most recent receipt for property taxes paid
