Trade License
Legally run your business with a Municipal Trade Licence.
By Nexgenca
What is a Trade Licence?
A Trade Licence is an official certificate issued by the local Municipal Corporation or Urban Local Body (ULB) that allows you to carry on specific business activities at a particular location.
It ensures that your business operations comply with public health, safety, and municipal laws, and are not hazardous to society or the environment.
Without a trade licence, running a business is considered illegal and can attract penalties, closure notices, or legal action.
Who Needs a Trade Licence?
Any individual or entity running a commercial establishment, such as:
- Shops & retail outlets
- Restaurants, hotels, bakeries
- Manufacturing units & factories
- Warehouses & storage units
- Service providers (salons, gyms, repair shops, etc.)
- IT companies, offices, and commercial spaces
Objectives of a Trade Licence
- To regulate business operations within local municipal limits
- To ensure businesses comply with safety, health, and zoning laws
- To prevent illegal trade practices
- To safeguard citizens against hazardous or unethical activities
Eligibility Criteria
- Must be 18 years or above
- Business must be legally permissible under municipal laws
- Should not have any criminal record
- Premises must comply with building and fire safety norms
Types of Trade Licences
- General Trade Licence – for everyday shops, commercial activities, and service providers.
- Industrial Trade Licence – for factories, warehouses, and manufacturing units.
- Food & Health Trade Licence – for restaurants, eateries, bakeries, food stalls, health clubs, spas, etc.
Documents Required for Trade Licence
- Proof of business address (Electricity Bill / Rent Agreement / Property Tax Receipt)
- PAN Card of applicant / business
- Aadhaar Card of the owner / directors
- Incorporation Certificate (for companies / LLPs)
- Memorandum & Articles of Association (for companies)
- NOC from property owner (if rented)
- Layout plan of the premises
- Fire Safety Certificate (where applicable)
- Consent from State Pollution Control Board (for factories, hazardous activities)
- Any other document specified by the local municipal authority
Application Process
The process may slightly differ depending on the city/state municipal authority, but generally involves:
- Application Submission
- Apply online via the respective municipal corporation portal or offline at the municipal office.
- Document Upload/Submission
- Submit all required documents for verification.
- Fee Payment
- Pay the applicable trade licence fee (varies by business type, size, and location).
- Inspection by Authorities
- Municipal officers may inspect the premises for compliance with safety and health laws.
- Approval & Issuance
- If everything is in order, the trade licence is granted, usually within 7–15 working days.
Validity & Renewal
- Trade Licence is usually valid for 1 year.
- Must be renewed annually before the expiry date.
- Late renewal may attract penalties.
Penalties for Non-Compliance
- Monetary fines by the municipal authority
- Closure of business premises
- Legal action under municipal laws
Benefits of Having a Trade Licence
- Legally authorized to run your business
- Builds credibility & trust among customers and stakeholders
- Helps in obtaining business loans, GST, FSSAI licence, etc.
- Prevents risk of fines, closure, or legal complications
- Ensures compliance with health & safety standards
Trade Licence Fees
The fee varies depending on:
- Type of business activity
- Business location (metro / tier-2 city / rural area)
- Size of premises and employee strength
- State/municipal corporation regulations