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Trade License Renewal

A trade license is a certificate that provides permission to the applicant to commence a specific trade in a particular location. In the last forty years, trade license has been introduced within the country and is being regulated through municipal corporation acts by the state governments.https://enterslice.com/trade-license-india

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Trade License Renewal

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  1. MARCH 24, 2020 Trade License An Enterslice Comperhensive Guide

  2. What is Trade License? An Easy Definition If you plan to establish a business of your own and you have no idea where to start and what approval is needed, then the first thing you need to look is that – whether you want to deal in goods or services and secondly- what will be your place of business. After being clear about the above mentioned points, the next thing on your to-do list is getting a license.By the way of this license, The government regulates any specific business in a specific locality. The Municipal Corporation of the place grants permission or trade license to carry on a particular trade in a particular locality. It ensures adherence to relevant rules, standards and safety guidelines prevailing in the land.

  3. How Trade License is different from Company Registration? The registration of the business is important for giving it a legal identity of its own. It depends upon the promoter to decide upon the type of entity he wants to establish depending upon his business scale. However, it is mandatory for every entrepreneur to obtain the trade license before the commencement of any business activity. If any person is found conducting the business activity without obtaining the license, the business will be considered as illegal and heavy penalty may be levied upon the owner.

  4. Every business entity planning to start i'ts business operations shall be required to obtainthis license within 15 days of the commencement of any activities. The activity consists of manufacture, exchange or even storage of any commodity. In some states it is mandatory to apply for this license 3 months prior to the commencement of any business activity. When should License be Acquired?

  5. Who Regulates Trade License? Generally, the state governments regulate in the state with the help of Municipal Corporations of the area. In some states, it is mandatory while it is optional in other states. The fees prescribed for the online trade license also varies from one state to another. The manner of collection of the fees is also different. In some cities it is charged as the annual fees while in the other, it is calculated and charged on the basis of percentage of business turnover. Some states have exempted certain departments from getting a license, eg. MSME in Delhi.

  6. Minimum Requirements for Getting a Trade License? The Government has prescribed certain minimum requirements for obtaining online trade license in various states and cities. Some of the general conditions are as follow: The individual applying for license must be atleast 18 years of age. The applicant shall be of clean image and shall be free from any criminal background. The activities in which the business is going to get engaged shall be legal.

  7. CATEGORIES OF TRADE LICENSE Type A Category Type B Category Type C Category These licenses are issued for the business activities related to consumable items and eating hubs. These licenses are issued for such trades which makes use of locomotive power in order to function, such as industries, workshops, flour mills etc. These licenses are issued for trade involving dangerous activities such as firewood, charcoal etc.

  8. DOCUMENTS REQUIRED Certificate under Shop and Establishment Utility Bill ID proof manager Rent Agreement Fire NOC ID proof FROM TRADE LICENSE Tax Receipts. PAN card

  9. Trade License Renewal It is not a one-time license. It shall be renewed on periodical basis. The requirement of payment of annual fees for the continuity of the license is also mandatory in some states and cities. The trade license renewal is done from 1st January to 31st March of every year. The application for renewal shall be made atleast 30 days before the commencement of the year for which application is sought for. A fine of 50% of the license fees is levied in case of any delay in the trade license renewal process

  10. Copy of the Original License. The following are the documents which are to be submitted with the application for trade license renewal: Challans of the fees paid in the previous years. Tax Payment Receipt.

  11. Appeal for Denial of Application In case your application for online Trade License is denied on any grounds, then, you can file a petition to Standing Committee (Health) with a copy of letter of denial to consider the matter.

  12. OFFICIAL CHANNELS Facebook LinkedIn Twitter https://www.facebook.com/ enterslice https://www.linkedin.com/co mpany/enterslice https://twitter.com/enterslic e

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