Trade Storage License

A Trade License is a permit issued by the local municipal corporation or government authority that allows an individual or entity to carry on a specific business or trade in a particular area. It is a way for the government to regulate businesses, ensure they comply with safety standards, and prevent unethical business practices.

Purpose & Use of License:

• Legal Authorization: It grants permission to conduct a specific business within a defined jurisdiction.

• Regulation: It helps the local authorities monitor and regulate various trade activities.

• Compliance: It ensures businesses adhere to relevant rules, safety measures, and guidelines.

• Public Safety: It aims to protect public health and safety by setting standards for different types of businesses.

• Liability Protection: It can offer a degree of protection to business owners against certain liabilities arising from business operations.

• Issuing Authority: The trade license is typically issued by the licensing department of the municipal corporation or the relevant local government authority. The specific department may vary depending on the nature of the business (e.g., health, engineering, industries). In Delhi, the Municipal Corporation of Delhi (MCD) is the primary authority for issuing trade licenses.

• Validity and Renewal: Generally, a trade license is valid for one year and needs to be renewed annually. The renewal process usually involves submitting an application along with the previous license and updated property tax receipts before the expiry date. In Delhi, the renewal period is often between January 1st and March 31st of each financial year, and the application should be made 30 days before expiry. Failure to renew on time may result in penalties.

• Eligibility: To obtain a trade license, the applicant typically needs to:

  1. Be at least 18 years of age.

  2. Have a clean criminal record.

  3. Ensure the proposed business is legally permissible and complies with zoning regulations.

Application Process in Delhi:

The application process can be online or offline, depending on the state and municipal corporation.

Online:

• Visit the official website of the respective city's municipal corporation (e.g., MCD for Delhi).

• Navigate to the "Citizen Online Services" or similar section and find the "Trade License" option.

• Select "Apply for Trade License" and fill out the online application form with the required details about the business and the applicant.

• Upload the necessary documents as specified by the authority.

• Pay the applicable fees online through the provided payment methods.

• Submit the application. After verification, an application number will be generated, and upon approval, the trade license can usually be downloaded from the portal.

Offline:

• Visit the relevant municipal corporation office in the area where the business is located.

• Obtain the trade license application form.

• Fill out all the required details accurately.

• Submit the completed form along with the necessary documents to the concerned officials.

• After verification, you will likely need to pay the fees at the office, and the license will be issued upon approval.

Documents Required in Delhi:

Applicant's Documents:

1. Identity proof (Aadhaar card, Voter ID, Passport, etc.).

2. Address proof (utility bills, rent agreement, etc.).

3. PAN card (for individuals, firms, or companies).

4. Affidavit (as specified by the authority).

Business Documents:

1. Proof of business address (latest municipal property tax receipt if owned, lease agreement or owner's consent letter if rented).

2. Certificate of Incorporation, Memorandum of Association (MOA), and Articles of Association (AOA) for companies.

3. Partnership deed for partnership firms.

4. Proof of legal occupancy of the establishment/unit or government allotment letter.

5. Documentary proof of the establishment of trade.

6. No Objection Certificate (NOC) from neighbors (sometimes required).

7. NOC from the Pollution Control Board and Fire Department (if applicable based on the business type).

8. Certified layout plan of the business premises, including working and washing areas.

9. Sanctioned plan of the building.

10. Occupancy certificate.

11. Bank statement and cancelled cheque.

Types of Trade Licenses (Categorization can vary by state):

• General Business License/Shop License: For various retail businesses, shops, and commercial establishments.

• Food Establishment License: For businesses involved in food preparation, storage, and sale, such as restaurants, cafes, bakeries, and food stalls. This often requires an FSSAI (Food Safety and Standards Authority of India) license as well.

• Industrial License/Manufacturing License: For factories and manufacturing units.

• Health Trade License: For healthcare facilities like hospitals, clinics, pharmacies, and businesses like salons and gyms.

• Liquor License: For establishments selling alcoholic beverages.

• Professional License: For professionals like doctors, lawyers, and architects (issued by relevant regulatory bodies).

• Other Specialized Licenses: Depending on the nature of the business, specific licenses might be required (e.g., for entertainment, transportation, hazardous materials, etc.). In Delhi, licenses are also categorized based on trade and storage.

It is crucial to identify the specific type of trade license required for your business and to comply with the regulations of the local municipal corporation where your business operates. Failure to obtain or renew a trade license can lead to penalties and legal issues.

Reach us at: +91 9899695009