Trade License
Trade License has launched in India before 40 years. Trade license is considered as the path to regulate the specific type of business from a particular place. A Trade License Registration Online is actually a certificate of permission to carry on a specific type of business or activities at that particular premises for which it has been granted. It is granted under the State Government.
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Overview of Trade License
Categories of Trade License
There are three categories under which a new trade license is granted:
Industrial License
Industrial license is applicable to business which is engaged in manufacturing and operating in large scale, medium and small scale.
Shop License
Shop license is granted to a business which is involved in operating dangerous and offensive activities like candle manufacturer, cracker manufacturer, firewood shop, and so on.
Food & Shop Establishment License
Food & Shop Establishment License license is issued by the business involved in the food business for example: restaurants, canteen, hotels, food stall, and so on.
Documents required for obtaining business Trade License
- Identity Proof such as Aadhaar, Passport, Driving Licence, Voter’s ID
- Address Proof such as Aadhaar Card, Ration Card, Driving Licence, etc.
- Certificate of Tax Returns
- Receipt of property tax of the business office building
- Rental agreement or Lease agreement if the office is a rented place
- Affidavit on an INR 20 stamp-paper stating the kind of the trade and area of business.
- Applicant’s passport-sized photographs
- Installation license
- No Objection Certificate(NOC) from the authorized District Fire Officer or Pollution Control Board or Inspector of Factories, if the business activities employ more than nine workers if any.
If the business employs steam or some other business source, then the applicant must submit the following documents:
- Building permits of the company.
- Details of the Power source, equipment and machinery
- If the company has more than 9 employs, Certificate of Approval from the Inspector of Factories is needed
- Certificate issued by the Deputy Director of Public Health.
- No Objection Certificate (NOC) from both the IRS and Fire.
- Consent or permission from TNPCB
Registration procedure to obtain Trade License
Panchayat
- Visit the official website of panchayat and fill the prescribed form available there.
- After filing the application, submit it with all necessary documents.
- The application is submitted to a sanitary inspector who will fix an appointment date which is informed to the applicant through SMS or email.
- On the appointment day, the inspector will visit the business premises and check whether everything is in the right precautionary manner. A report or summary will then be made and if it satisfies the regulations of the law, the fee details will be notified online.
- Then the Sanitary Inspector will forward this summary or report to the Sanitary Officer who will verify and remove any irregularities in the report.
- After that, an executive officer will receive a file, if it is satisfactory, he or she will support it.
- During any of these steps, if the authorized officer finds anything is missing, then the application will be returned to their subordinate officer to re-check the report.
- Once the application for approved, a demand notice for the fee is specified.
- After completing the payment process, the online Trade License is granted.
Urban Areas
- Visit the Karnataka Government’s official website and procure Form-1 along with the fee payment.
- Fill all the details in the Form that includes the personal information of the applicant, the purpose of trade and Tax details.
- Filing the application to the Commissioner.
- After submission of the application, the Commissioner will analyze and inspect the application and if he/she is satisfied with all the needed documents, a fee payment should be paid, after which the licence will be issued within in a time period of 1 week.
- As obtaining the trade license online, the renewal the form is also mandatory and it can be filed by March 1st in Municipalities, and 45 days prior to the end of the year in specified Corporation zones.
Online registration of Trade License
- Visit the official website.
- Sign up with the necessary details.
- Receive the username and password to log in to the site.
- From the Applications tab, and click the Trade License certificate tab.
- Fill all the required details in the application along with all necessary documents.
- Submit the application form, in return, the applicant will get an acknowledgement slip.
- Receives the application from the ARO of the Zone for the verification process.
- On completing on-site verification, a report is made and it will be sent to the Zonal officer.
- If the authorized officer finds all to be satisfactory, the applicant can make the fee payment online
- And finally, the online trade license registration of the business will be issued through email.
Frequently Asked Questions
Trade License is a license that varies as per state. In some state obtaining trade license is compulsory while some state has made it an optional depending on the business. As per the state, the rules and regulations relating to fee structure also vary as such as few states charge a monthly fee while others charge in a percentage of the business total turnover.
Basically, the processing time taken to complete the process of obtaining a trade license is different for different states. Usually, it takes 7-10 days in metro cities, and in small cities, or rural areas it takes quite longer than the urban cities.
If a person starts any business relating to trading without getting a trade license in which state, it is mandatory, or violating the guidelines and standards will be liable for penalty as specified in a particular location and moreover is liable for legal actions also.
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