Ideal for trading business
Starting At Rs. 4,799 Onwards (+govt fees)
(Takes 10-20 days)
Procedure for Trade License
What is Trade License
Every business needs a trade permit from controllers, be it the municipal corporation or the government. Trade License may be a document that provides permission and certifies you to hold on a specific trade or business for that it’s issued. It doesn’t give the responsibility for property or permission for some other activity aside from that it’s given.
The municipal corporation approves the licensing department and allots licenses in the conference with other explicit consultative departments like Health, Estate, Engineering, and others of a similar kind.
In the context of this, it is fundamental for any business foundations to take primary licenses from the License Department before starting manufacturing, trade, or storage of any activity. The appliance has got to be filed with the Commissioner in the Corporation 30 days before the beginning of a business. While filing, the business needs to submit all the mandatory documents
Trade License is completed through LegalRaahi.
What is included in Our Trade License Package
Why Trade License
Over the most recent 40 years, trade license has been included in the country and is being administered by municipal corporation acts by the state governments. These advantages in guaranteeing that nobody is exclusively influenced by the disturbance and health hazard of any trade or business.
It has been made compulsory by the government to complete a specific business or trade in a specific region and to make sure that nobody is completing out any wrong business practices. This license creates an agreement in the general public that all business is keeping relevant rules, guidelines, and adopting the security measures. This license was made necessary to ensure that the legislature can manage distinctive trade activities in the nation. The core purpose of issuing this is often to regulate the locations by limiting the people from executing a few kinds of organizations from their home location to maintain the business environment.
- Important to manage the trades to make sure that the citizens aren’t suffering from health hazards & nuisance due to improper carrying of a trade.
- A medium to make sure that the business is being conveyed as per applicable relevant rules & safety guidelines.
- A Licensed business will have higher goodwill and can attract the clients and investors than an unregistered entity.
- It secures the proprietors upon certain kinds of obligations.
- Organizations having better business draw in various investment groups and other business organizations
- To do moral business, practice the individual can apply for getting Trade License Registration which guarantees the security measures and rules.
- If an individual does not get a Trade license as varying under the law and begins any business than a government can impose fine and penalty on such person. It can likewise bring about the end of such a business.
Validity of Trade License
An exchange permit is important for each business that completes a trade or business needs. An exchange permit is legitimate just for 1 year.
Numerous different arrangements, rules, and guidelines are required to be trailed by the enrolled individual. In the event of carelessness to follow the enrollment states of exchange permits and beginning any exchange movement before the issuance of this permit, the individual in the default will be dependable to take care of the coordinated punishment. Additionally, the lawful move can likewise be made against the defaulter
Trade License Renewal
The trade licenses in India are reestablished from January 1st to March 31st. The validity of a license given by the municipal authority is for one year and required to be renewed per annum.
The application for the restoration of the license is to be done within 30 days from the date of its expiry. Just in case of the renewal process is delayed, then it’s going to attract a fine depending upon the principles and regulations of the issuing authority
The documents that need to be submitted for renewal of the Trade license are the following:
- Original copy of the trade License
- Previous year Challans
- Up to date land tax paid receipt
How is Trade License different from Company Registration?
Company Registration gives the new structure of business while the Trade License is approval to a previously running business for initiating new activity or business. Any running business can enroll itself as a legitimate substance or any individual can likewise frame another structure as an enrolled organization. Trade License is one of the certificates received by a previously registered company on the off chance that it was prepared to continue any additional activity. Investors typically hesitate for putting resources in any sole-proprietor ventures as connected to the element heated by a legal structure like Company, LLPs, etc.
Differences based on validity, authority, documentation, etc are briefly discussed in the Table below.
Basis of difference
|Structure||The new business entity is formed to carry on the business.||The existing entity takes the approval for carrying a particular type of activity|
|Eligibility||Directors must not be minor. The company should be registered with a minimum requirement of capital.||The applicant must have crossed 18 years of age with no criminal record. Business shall be legally authorized by its object to carry on such other activity for the trade license is acquired.|
|Types||The following are the types of Company: Private Limited, Public Limited, OPC, etc.||Types of trade license: Shop License, Industrial license, Drug license, etc.|
|Processing time||ROC takes 3-4 days to issue Certificate of Incorporation||Concerned authority takes 7 to 10 days for processing of an application|
|Validity||Valid for lifetime once allotted||Valid for one year|
|Renewal||They are not renewed as they are valid for a lifetime.||They are renewed after their expiry by submission of necessary documents.|