Trade Licences from Municipal Authority is Must for business places. Introducing fresh products imposes amendments to existing Trade Licence. Deviation invites Penalties. We assist with all Trade License matters.

• Clarification on Queries posed
• Application Drafting and Filing
• Renewals and Amendments
• Easy Online Process

Every place of business in India requires a valid Trade Licence to carry out its specified business activity. Such a Trade Licence is issued by the Municipal Authority in whose jurisdiction the place of business is located. The Authority issues these licences based on directives given to it by its State Government. Background

Business operations can often be either a nuisance or hazard to neighbours. For instance, a service set-up operating late hours could be a source of noise pollution, parking problems in a residential colony while a trader dealing in chemicals could be a potential health or fire hazard. Trade licences certify that local authority is:

• (a) aware of details of the business activity and its location

(b) has awarded its permission to conduct such activity from that location sing

It is thus a regulation to safeguard common citizens from the adverse effects of business activities and to see that these are conducted in proper areas.

But thevery possession of trade license implies that the business is aware of the relevant rules, standards and safety guidelines. This further implies that the business will not deviate from these guidelines OR will seek to amend / apply for a fresh licence in case of change (of product/service OR change of premises).

Unauthorisedrunning of trade is an offence inviting penalty and prosecution. There is a great deal of variation from city to city and even within cities on such action. It should be noted though that in September 2018, BBMP in Mumbai fined 41 businesses found to be operating in residential zones, Rs.31,000 each as reported in the Deccan Herald of 26th September.

Owners are supposed to apply for their trade license before the start of the activity. Licences require periodical renewal on an annual basis andapplication for renewal must be filed at least 30 days before expiry of the current licence. Registration of Trade licences can often be a time consuming and expensive process. Charges also vary according to location.

Different categories of Trade Licences

1. Industries licence: small, medium and large scale manufacturing factories
2. Shop licence: for warehousing, sales and service activity
3. Food establishment licence:for restaurants, hotels, canteens, perishable food outlets, bakeries, halwaiis and so on
4. Eligibility for a Trade Licence
5. The applicant must have crossed the age of 18 years
6. The applicant must not have any criminal records
7. Business must be legally permissible

Documents Required for Trade License Registration

Again, there is variance in requirement from Municipality to Municipality. In general what is required is:

• Pan Card of the establishment in case of company, LLP or Firm
• Canceled Cheque and Bank Statement of the establishment.
• Certificate of Incorporation, MOA and AOA of the company or LLP/ Partnership Agreement as the case may be.
• Proof of Residency in the form of Sale Deed, Electricity/Water Bill

• NOC from owner if premises have been rented
• Colour Photograph, Pan Card and ID Proof and Address Proof of all Directors/ Partners.
• Front-Facia Photograph of the establishment with Display of goods traded from the premises.
• Site Plan showing site area, its immediate surroundings and area occupied by applicant.