A trade license is a document or a certificate that allows the applicant or the person seeking a trade license to conduct a specific type of trade or business in a specific location. The license allows the applicant to conduct only the type of business or trade, for which the license has been issued. 

The trade license ensures that all kinds of business follow the ethical code of conduct, functions according to the relevant rules, and gets severally affected by nuisance or conduct unethical business. The license was made mandatory for the commencement of business or trade so that the government can keep a tab on such businesses to prevent unlawful activities. The main objective of issuing the license is to maintain a healthy business environment. Another key objective of issuing a trade license is to prevent certain kinds of business from operating at localities or homes, to maintain a healthy business environment and a healthy locality. 

The trade license is issued by the licensing department of the municipal corporation concerning various areas such as industries, health, engineering, etc. Although the issuance of the license varies depending on the rules are procedure followed by the municipal corporations located in various states in the country. The time period for issuing the license also varies across different states. The renewal period of the license 

There are varied categories of trade license such as: 

1. Industry License
2. Shop License
3. Food establishment license 

Each of these licenses is demanded depending on what field you choose to operate your business in. Certain criteria need to be fulfilled to be eligible for applying for a trade license, such as the applicant must be above 18 years of age, there should be no criminal records of the applicant and the business for which the applicant seeks the license must be legally permissible to conduct. 

For seeking a trade license the applicant should first apply to the concerned municipal authority, with all the necessary documents. Although the procedure for issuing a trade license may differ from state to state, certain documents are common and mandatory to submit:

1. If the application is made by a firm, or company, or LLP then their PAN card along with the incorporation certificate has to be submitted. 
2. In case, the applicant is an individual, he/she must submit their AADHAR card. 
3. Another important document is the latest municipality property tax payment receipt. 
4. Non-Objection Certificate from the neighbors. 
5. Occupancy certificate
6. Consent letter or lease document from the owner of the property.        
7. Sanction plan