Showing posts with label Trade License. Show all posts
Showing posts with label Trade License. Show all posts

What is a Trade License?


When starting a business, one needs to be aware of the legal regulations and compliances that are associated with its operations. One such essential license is the Trade License. A Trade License is a form of government approval provided through Municipal Corporation for a specific business in a specific locality. Such permission is granted subject to the adherence to relevant rules, guidelines, and standards as per the laws applicable in the area of operations.
Hence after the registration of the business form into a company, sole proprietorship, LLP etc, it is mandatory to obtain the Trade License before the commencement of any business activity. Operating without the Trade License is illegal and attracts heavy penalty in many states. The general time period within which the Trade License must be acquired is 15 days of commencement of operations of the business. The rule may vary for the states.

Who Regulates Trade License?

The local authority, Municipal Corporations aid the state governments in such regulations. The fees prescribed and the accepted modes of payment for the Trade License vary from one state to another. All the regulations regarding the Trade License are state-specific.  In Delhi, the Municipal Corporation of Delhi regulates the Trade License Renewal.
MCD issues a Trade License to the business establishments permitting business activities to be commenced under the DMC Act, 1957. It is mandatory for a person who intends to set up a trade in the jurisdiction of MCD to obtain trade/ storage license.
Where to apply for the Trade License?
An application for the Trade License has to be made either at a CSB or on the online portal of MCD. An applicant can submit the required documents at any CSB after mentioning the Acknowledgment Number provided upon making the online application.

What documents are essential for making an application for the Trade License?
The following documents require to be submitted for a fresh Trade License:
1.      Proof of legal occupancy of the unit
2.      Proof of establishment of trade
3.      Site plan
4.      Key Plan
5.      Proof of fire-fighting equipment existing at the unit (NOC)
6.      Proof regarding non-existence of unauthorized construction at the unit (NOC)
7.      An indemnity Bond for Rs.100/-
8.      An affidavit for Rs.10/-
9.      NOC from land-owning agency
10.  Deed of constitution, if any
An amount of Rs.500/- per application has to be submitted as processing charges.
How many days does it take to obtain the Trade License?
It takes approximately 20 working days from the date of payment of the required charges by the applicant for issuance of the Trade License renewal. It shall either be issued by hand to the applicant at the CSB or can be couriered to the provided address if it has been requested by the applicant.
Can a duplicate Trade License be applied for?
Yes. A duplicate Trade License can be applied for if the original is lost, mutilated, destroyed, etc. It can be issued upon the payment of Rs.100/- towards processing charges after the submission of the below mentioned documents:
a)      First Information Report (FIR)
b)      Indemnity Bond in prescribed format
Source url - http://enterslice.over-blog.com/2018/07/what-is-a-trade-license.html

Trade License & Trade License Renewal


To carry on the particular trade or business, permission is required to be obtained by applying for trade license. Trade license gives permission for only those trade related activates for which it has been obtained and not other than that. Before starting manufacturing activities by an establishment it is required to obtain fundamental license from the license department.
Trade license is applied on the basis of the premises therefore it has to be obtained for all locations from where the business activity is carried out. An application has to be filed prior to the 30 days of commencement of such activities by the establishment. Its main purpose is to regulate trade in the country along with the safety guidelines prescribed by the government.
Trade License Requirement
§  Its main purpose is to regulate improper trade activities and to ensure that citizens are not adversely affected by health hazards & nuisance.
§  It provides safeguard.
§  It ensures that activities are carried out in accordance with the rules & regulations prescribed by the government.
§  It helps in building image of the establishment that no illegal activity is carried out.
Trade license is obtained from concerned State Government or Municipality or corporation where the place of business is situated. State government lays down the provisions of trade license and besides this, it is also responsible to manage and regulate the trade within a city.Each state has its own set out of rules and regulations in relation to trade license. Therefore before applying for trade license an applicant must be aware about the rules & regulations pertaining to trade license and also the jurisdiction under which an applicant operates. There are different names of this license in different states like in Maharashtra it is known as Gumasta License. Trade license prevents establishments from penalty & prosecution. In India, carrying business activities without obtaining trade license is an offence punishable.
Documents required for Trade License
§  In case of company or LLP, PAN card of establishment;
§  Cancelled cheque with bank statement;
§  Certificate of Incorporation of company (MOA & AOA);
§  Address proof of establishment;
§  ID proof and address proof of all directors and their passport size photographs;
§  Front-Face Photograph of the establishment and display of goods;
§  Site plan of the applicant.
Trade License Application Scrutiny
On receiving the application for trade license renewal, concerned officer shall verify the suitability of business and possibility of danger or nuisance. After scrutinizing an application, trade license is issued. In some of the states, in person verification is done by the concerned authorities. This process usually takes around 10 to 15 days after submission of an application.
Trade License Renewal
After the issuance of trade license, it is required to be renewed on annual basis. Trade license is issued for the period of one year in some states however an application can be made for license renewal at the end of the each year on the payment of prescribed renewal fees.
Source url - http://enterslice.over-blog.com/2018/06/trade-license-trade-license-renewal.html

What is trade license?

Whenever you want to run any business there are various licenses issued by the Government depending on the sector it deals in. But today we are going to brief on one of the license required before setting up the premises is Trade License.
Shop and Establishment Act governs the issue of trade license. A license which is issued by the Local Government (Municipals) signifies the Identification proof of any business trade. As it has provided the legal sanctity and also confirm that the trade is within the permissible rules and regulations of specific state.However, trade license cannot be misunderstood as the ownership certificate on the premises where such business is carried on.
Business categories for which trade license is required:
1.      Food establishment license
Issued to any trade which includes the business of serving and preparation of foods and beverages like hotels, restaurants, canteen, food stall, bakeries, the sale of vegetables and meat etc.
2.      Industrial license
Issued to any trade which includes any sought of Manufacture of industry, factory, flour mills etc
3.      Shop license
Issued to any trade which persist of hazardous substance or which came under the category of danger substance like barber shop, dhobi shop, candle manufacturer etc.
Procedure to apply for trade license:
The process of obtaining trade license has been relaxed by the Government over the period of time and the same can be done through online portal of respective states since it’s a subject matter. But the general procedure to be followed
1.      Submission of an application along with the fees to inspector for inspection along with the following details:
§  Name of the business, owner, manager of establishment
§  Address proof of the establishment
2.      After the inspection of the application, certificate of registration will be issued and inspector will register the name of premises in Register of Establishments.

Amendment to Certificate

If any kind of changes made in the certificate the owner will have to intimate about it within 15 days from date of change
Some important notes on legal technicality of trade license:
  1. Application for trade license has to made before you start running your business
2.      Trade license has to be obtained within 30 days of commencement of business.
3.     This license will be required to be renewed annually or for any other period specified
4.      Renewal of the license to be done 30 days prior to expiring of license
What is trade license renewal?
If you taken a trade license make sure that it is not a one-time license. It needs to be renewed periodically. The trade license renewal period starts from 1st January to 31st March every year.
In some states annual fees needs to be paid for the continuity of the license.
The application for renewal shall be made atleast 30 days before the commencement of the year for which application is sought for.
Consequence in Delay of License Renewal
If you have made any delay in trade license renewal process fine of 50% of the license fees is levied.
Documents Submitted At Time of Renewal
·        Copy of original license
·        Challans of the fees paid in the previous years.
·        Receipt of Tax payment
Source url - http://enterslice.over-blog.com/2018/06/what-is-trade-license.html

Brief Aspects about Trade License


Whenever you want to run any business there are various licenses issued by the Government depending on the sector it deals in. But today we are going to brief on one of the license required before setting up the premises is Trade License.
Shop and Establishment Act governs the issue of trade license. A license which is issued by the Local Government (Municipals) signifies the Identification proof of any business trade. As it has provided the legal sanctity and also confirm that the trade license renewal is within the permissible rules and regulations of specific state. However, trade license cannot be misunderstood as the ownership certificate on the premises where such business is carried on.
Business Categories for Which Trade License is required:
Issued to any trade which includes the business of serving and preparation of foods and beverages like hotels, restaurants, canteen, food stall, bakeries, the sale of vegetables and meat etc. Issued to any trade which includes any sought of Manufacturing of industry, factory, flour mills etc. Issued to any trade license which persist of hazardous substance or which came under the category of danger substance like barber shop, dhobi shop, candle manufacturer etc.
Procedure to Apply for Trade License:
The process of obtaining trade licenses has been relaxed by the Government over the period of time and the same can be done through online portal of respective states since it’s a subject matter. But the general procedure to be followed is submitting of an application long with the fees to inspector along with the following details:
·       Name of the business, owner, manager of establishment
·       Address proof of the establishment
After the inspection of the application, certificate of registration will be issued and inspector will register the name of premises in Register of Establishments. If any kind of changes made in the certificate the owner will have to intimate about it within 15 days from date of change
Some Important Notes on Legal Technicality of Trade License:
  1. Application for trade license has to made before you start running your business
2.     Trade license has to be obtained within 30 days of commencement of business.
3.    This license will be required to be renewed annually or for any other period specified
4.     Renewal of the license to be done 30 days prior to expiring of license

Subscribe to: Posts (Atom)