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
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ReplyDeleteTrade license renewal Dubai
ReplyDeleteA trade licence is a paper or certificate that authorises the applicant (the individual looking to start a business) to start a specific trade or business in a specific place.