Trade License Registration: Trade License, Benefits, Documents, Renewal, Procedure

Trade License Registration: A “Trade License” is a legal certificate or document provided by a state government authorized authority (in most situations, a local municipality). It allows the applicant (a person or a group of people) to create a business in a particular region or area. The company that acquires the license must follow all of the authority’s rules and regulations. The trade license also confirms that the company is not engaging in any illegal behavior that could endanger residents in the defined area.

Should apply to the authority’s authorized commissioner at least 30 days before the start of the business. (Trade License Registration) During this time, the applicant/enterprise must provide all the required documents.

What Is A Trade License?

A “Trade License” certificate or document allows an applicant to start a specific business or trade in a given area. The candidate must be at least 18 years old, and their business must be legal.

It does not guarantee property ownership and cannot use it for purposes other than those given it. Individuals must register their new business and apply for an online trade license.

The main goal of the trade licence application is to prevent individuals from operating their businesses from their homes. (Trade License Registration) Must apply within 30 days of the business’s start date.


Why is Trade License Required? Trade License Meaning

For the last four decades, the country has relied on trade permits. State governments regulate them through municipal, corporate entities. That ensures that no one is harmed in more than one way by the interruption and health hazards associated with a trade or industry.

The government has made it a requirement to do certain businesses or trades in a particular place and ensure no unethical business practices. (Trade License Registration) This license promotes societal harmony by ensuring that all companies adhere to the applicable rules, norms, and safety precautions. The government required this license to keep an eye on the country’s many different companies.

The primary goal of granting this is to protect the business environment and the local environment by preventing people from doing sure sorts of business from their residential location.

Read also: FPS License Online.

Who Issue The Trade License?

  • The municipal corporation’s license department issues it in many industries, engineering, and health.
  • The Indian government has granted the license to regulate cities across the country.
  • It authorizes any activity or trade through letters or documents/certificates. (Trade License Registration) The license is issued differently in each state, depending on the rules and regulations of local government bodies (municipals).

Types Of Trade License

  1. Industries License: Small, medium, and large-scale manufacturing facilities are available.
  2. Shop License: Trades that are dangerous and unpleasant, such as selling firewood, making crackers, candles, barbershops, and laundry (dhobi) shops.
  3.  Food establishment license: Restaurants, hotels, food stalls, canteens, meat and vegetable markets, bakeries, etc.

Eligibility Criteria For Applying for Trade License Online

The following are the requirements for applying for a trade license:

  • The applicant must be at least 18 years old.
  • There should be no criminal records on the candidate.
  • The company should be authorized to operate.

Documents Required For Trade License Certificate

The following documents are needed to apply for a trade license:

  • Proof of business address.
  • The applicant’s proof of identity
  • An Aadhaar card is a unique identification number issued by the government of India.
  • It is necessary to utilize the individual’s PAN while operating as a sole proprietorship; otherwise, must use the firm’s PAN.
  • Will require the Memorandum of Association (MOA) in the case of corporations.
  • For corporations, a certificate of incorporation would be required to conduct business.
  • A recent municipal property tax receipt is required; otherwise, a lease contract or consent letter from the property owner where the business is registered.
  • The neighbors’ NOC (nearby property owners)
  • The office layout plan has been certified.
Read also: FSSAI Registration Process Online.

Benefits Of Trade License

  • An entity with Legal Status: To be recognized as a legal entity, a business must obtain a trade license.
  • Organizes and manages rules and regulations: There must be rules and regulations for the town where the business is.
  • A Measure of Competence: A business can operate in a commercial location without fear of being shut down if it has a trade license. This reflects the business’s and the entrepreneur’s confidence and expertise.

How To Apply For Trade License Online?

  • Submit a license application to the appropriate municipal corporation.
  • Go to the municipal corporation’s official website. Let’s say we are applying from Jaipur.
  • Select “Trade License” from the drop-down menu on the home page.

jaipur trade license

  • Register for an account and enter all of your credentials and personal information.
  • Select the “Submit” option. It will create the user ID and Password.
  • Enter your username and password to log in or click on Register to create an account.


  • Apply for a new license.
  • Fill in the blanks with the necessary information.
  • Fill in the type of business, the NOC, and the property tax information.

online apply

  • Submit and upload your documents.
  • Officials from the local government will examine the application and papers.
  • A unique application number is generated automatically after verification.
  • Pay the fee by selecting the “Make Payment” option from the drop-down menu.
  • Then you will get the license number. 

Which Businesses Require a Trade License?

  • All Food Serving Premises :
    Hotels, Restaurants, canteens, Malls, theaters, Clubs, bakeries and confectionery shops, Snack shops, Food stalls, Retailers and traders of goods, Daily need stores.
  • Service Trades :
    Barber shops, Cyber cafes, timber shops, all small medium scale industries, manufacturing units.
  • Manufacturing Units/ Industries:
    All the Manufacturing and processing units, Small and medium and large scale industries, Cafe’s.

FAQ’s regarding Trade License Registration: 

What is a Trade License?

trade license registration

A “Trade License” is a legal certificate or document provided by a state government authorized authority (in most situations, a local municipality). It allows the applicant (a person or a group of people) to create a business in a particular region or area.

How long does it take to get a trade certificate?

trade license registration

The entire process of obtaining a Trade License should take no longer than 15 days. Yes, the government has made renewing this license a necessity every year. Failure to do so may result in a penalty or fine.

Why Trade License is Required?

trade license registration

Trade licenses have been used in the country for the last four decades. State governments control them through municipal corporation bodies. This makes sure that no one is hurt in more than one way by a trade or business’s disruption and health hazards.

Is it compulsory to renew a Trade License?

trade license registration

Yes, the government has made renewing this license a necessity every year. Failure to do so may result in a penalty or fine.

What is Trade License Number?


The registrar issues a certificate of trade license with the trade license number after completing trade license registration. You can also look out for the trade license number just on the website of the relevant municipal corporation.

What is the time period of trade license renewal?

Every year, from January 1 to March 31, trade licenses are renewed.

What will happen if I don’t get my trade license?

It is illegal to conduct an unapproved trade. With or without prior notice, the concerned authorities may suspend or lock up your trade enterprise.

What is a KMC trade license?

The term “KMC trade license” refers to a trade license issued by the Kolkata Municipal Corporation.

Can a trade license be suspended, how it could happen?

If the license holder is harassing people to neighbours or the environment, the license will be withdrawn.