Operating an Indian business does not only involve having an idea and capital investment but it also involves abiding by the local laws and regulations. A trade license registration in India is one of the most crucial legal conditions to be satisfied to conduct business in Indian municipalities or an urban area. It is a license that would guarantee that your business is legal, meets the local regulations, and is functioning without any harm to the public health, safety, or inconvenience.

In this blog, we shall discuss all that you need to know about the services of trade license, how a trade license is registered online and the significance of a valid trade license in India.

What is a Trade License?

Trade license is a certified or an official document granted by the local municipal corporation that allows individuals or companies to conduct certain forms of business or trade. It is not a license to own or possess property but a legal permit to work within a specific locality and with a particular purpose of business.

As an example, restaurants, stores, factories, or service oriented businesses need to acquire trade license to begin their operation. This license is meant to control the businesses to avoid their being dangerous to the society in either safety, hygiene or environment.

Why Trade License Registration in India is important?

In the event that you are in need of starting or expanding your business, you will need to obtain a trade license. Here’s why:

• Legal Compliance: Legal penalties, legal problems or even shutdown of the company can occur if the business is operated without license.
• Trust and Credibility: Fidelity Customers have trust in businesses operating under all the relevant licenses. It is a way of building your reputation and attracting more clients.
• Health and Safety Standards: The license will provide a good hygiene, environmental and safety standard to your business.
• Saving on Fines: Violation of municipal rules may attract hefty fines. Such problems are safeguarded by a license.

India: Who Will Need a Trade License?

This license is required in almost all businesses that are run within municipal territories. This includes:

• Small stores and businesses.
• Factories and manufactories.
• Hotels, cafes and restaurants.
• Storage facilities and warehouses.
• Service-based companies (ie, salons, gyms, and shops)

In case your business is associated with goods, services or production, there are pretty high chances that you will be required to register trade license in India.

The following are the services in terms of trade license

In obtaining a trade license, this might be a complicated process depending on where you live i.e. city or a state. Professional trade license services come into the picture there.

These services normally consist of:

• Advice on the need of a trade license in your business.
• Instruction on documents that are needed to apply.
• Application with the municipal authority filing and submitting.
• Helping in the renewal or a change of trade licenses.
• Quick approvals supported and applied online.

Professional services are also used to save you time and unwarranted rejections by mistakes in the application process.

Forms to be used in registration of Trade licenses

The following documents are usually required in order to register trade license online:

1. Application form filled properly.
2. Proof of identity and address of applicant (Aadhar, PAN, Voter ID etc.)
3. Evidence of business location (receipt of property tax or rental agreement or lease document)
4. In case of rented property, NOC (No Objection Certificate) of the property owner.
5. Incorporation certificate (where companies are involved)
6. Plan of the business location.
7. Other state-specified documents it may need to comply with the municipal authority.

Application of registration of trade license online

It has simplified the process of entrepreneurs seeking registration of trade license online by the Government of India and the state municipalities. Here’s a step-by-step guide:

1. Go to the Municipal Corporation Web Site: Log into the municipal corporation web site of your city.
2. Register on the Portal: Sign-up on the portal and log-in using your credentials.
3. Complete Application Form: Enter business information (name, type of trade, address and information of the applicant).
4. Upload Documents: provide the scanned version of all the necessary documents.
5. Make the Payments: The trade license Fee differs according to the nature of business and the state legislations.
6. Review of your Applications: The authorities will be checking on your documents and they can also inspect your premises.
7. Ratification and Issue: After approval, the trade license certificate is downloadable online.

Renewal of Trade License in India and its validity

Trade license is normally one year and has to be renewed every year. To evade penalties, renewal applications need to be submitted prior to the expiry date. Renewal follows the same procedure as if applying in a new license, except that it normally takes less documentation.

There is a penalty of lack of a trade license

Running business without legitimate trade license in India might have grave repercussions which may include:

• The financial penalties introduced by local governments.
• Prosecution or shut down of the enterprise.
• Customers mistrust and loss of reputation.

That is why all business owners need to put the focus on acquiring a license prior to its opening.

Advantages of registration under Trade License.

There are various benefits associated with getting a trade license to your business:

• Makes your operations legitimate in the law.
• Assists in easy growth of business.
• Improves the brand image and customer confidence.
• Shields your business against unforeseen fines.

Conclusion

Having a trade license registration in India is not merely a formal business task- it is a significant process towards establishing a business that is compliant, as well as one that is trusted by the people. You are either opening a small shop, a restaurant, or a factory, in any case, you need to make sure that you apply to the trade license services to make sure that you are not on the wrong side of the law.

The trade license registration is now much easier and time saving with the option of registration online. Not only will you avoid legal troubles by registering your trade license in India, but you will also be establishing a good platform that will make your business successful in the long run.