Trade License

A trade license is imperative for every business or trade to conduct operations within the local municipality.

Issued by the Municipal Corporation, this certificate permits an applicant to engage in a specified trade or business outlined in the application. It doesn't confer additional rights, such as property claims or engagement in activities not initially specified.

Most states mandate businesses to apply for a license at least 30 days before commencing operations and necessitate prominently displaying the obtained license.

How to Apply for Trade License in Delhi

The Municipal Corporation of Delhi (MCD) is the authorized entity for issuing trade licenses in Delhi.

Importance of Trade License

Trade licenses protect businesses from damages or injuries resulting from their actions. It ensures ethical business practices and shields business owners from specific liabilities.

Documents Required For Trade License

While document requirements vary slightly across states, a general list includes:

• Application in the prescribed format.
• Address and identity proof for individuals.
• Affidavit.
• Certificate of Incorporation/Partnership Deed.
• Canceled Cheque and Bank Statement.
• Rental Agreement or proof of ownership.
• Consent letter from the owner of the business premises.
• Latest Municipality Property Tax Receipt.
• Address proof of directors.
• PAN of the entity.
• NOC from land-owning agencies.
• Certified layout plan of the trade building.
• Sanction Plan.
• Occupancy Certificate.

Renewal of Trade License

For renewal, documents such as address and identity proof, the original license copy, old receipt, and the application for renewal are required.

Duplicate Trade License

In case of a duplicate trade license, an FIR, indemnity bond in the prescribed format, and other necessary documents are needed.

Registration Process:

ETaxwala simplifies the Trade License application process, offering services like Trade License registration, ISO certification, MSME registration, etc.

• Sign up for our service.
• Receive a list of required documents based on your business category and jurisdiction.
• Submit the necessary documents.
• We process the application with the Licensing Department, providing you with an acknowledgment.
• Receive a hard copy of the license within 10 working days.

FAQs:

Q. Qualifications for License Application


Ans:

• The applicant must not be a minor.
• No prior criminal records.
• Application for a legally permissible business.
Q. Types of Licenses


Ans:

• Industries License: Required for small, medium, and large-scale manufacturers.
• Shop License: Required for dangerous (e.g., sale of firewood, firecrackers) or offensive trades (e.g., dhobi, barbers).
• Food Establishment License: Required for businesses dealing with food products (e.g., bakeries, restaurants, hotels).
Q. Conditions for License Revocation


Ans: Violation of license conditions or complaints from neighbors can lead to revocation.

Q. Timeline for License Application


Ans: Every business must apply 30 days before commencing work.

Q. License Issuance Fees


Ans: Fees vary from state to state. Sign up for our service to simplify this research.

Q. Penalties for Non-Compliance


Ans: Penalties differ by state. Running an unlicensed trade is an offense, leading to potential closure and seizure of the business. Non-compliance not only results in legal sanctions but also operational disruptions.