A trade license is a legal certificate or a legal document issued by an authorized body of state government that allows The applicant to operate his business in a specific area or location. The license is issued to practice a particular trade and the applicant can only practice the trade for which the license is issued. The trade license Ensures that no one is carrying out any unethical business practices and it also controls the location by restricting the people from executing the certain type of businesses and maintains the business environment.
If A business has a trade license it can obtain its status as a legal entity, it can be considered as a measure of competence and a business can operate in a commercial space without any fear of winding it up. a minor that is a person below the age of 18 and any person who has a criminal background or a criminal record is not eligible to obtain a trade license and any business that is not permissible by law is also prohibited and such business operator is not eligible for a trade license. So the eligibility criteria are that a person must be a major, must not have any criminal record, and his business must be legally permissible.
A company or an individual can apply for 3 types of trade licenses that are based on a type of trade or business they are practicing. Shop license, industrial license, and food establishment license. A shop license is required by an individual who wishes to open any retail type shop. If an individual or company wants to open a medium-sized industrial unit or small-sized industrial unit they will be required an industrial license. Food establishment license is for businesses like canteens, restaurants, bakeries, hotels etcetera.
The documents that are required To apply for a trade license are the PAN card of the business owner, bank details, If the applicant requires a trade license for LLP he needs to article of Association, Memorandum of Association, incorporation certificate. the applicant will need to submit the proof regarding the property, utility bills such as water bill and electricity bill will be required, sale agreements will be required, ID proof for directors, lease agreement if rented, no objection certificate from the owner, recent photo and address proof of all the directors, partners will be required. Occupancy certificate and tax receipts of the property will be required. The applicant must submit identification proof of all the directors. Sanction plans will also be needed. If the business premises are located in the state of Karnataka then the applicant will be required to submit a Khata extract and Khata certificate.
The processing time for the application for a trade license is 7 to 10 days in Metro cities and it will be extended if it is in other small cities.
The license needs to be renewed every year that is because the validity of the license issued by the min simple authority is only for one year. Between January first 231st March one can renew their trade license and the application must be made within 30 days from the date of its expiry. To renew the license one will need the original copy of the trade license, Challans of the previous year, and up to date property tax paid receipt.
This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.
