Overview of Trade License Registration

If a business is being planned to start in any form of a factory, shop, or any other kind of establishment, then the industry must obtain a Trade Licence from the respective state Authority; the application is required to be submitted to the State Authority along with the documents and after which the concerned authority on the successful verification of the information provided will issue the Trade Licence. To administer a Trade Licence, the fees for obtaining the License from the municipal authority differ a bit depending upon the rules and regulations the municipal authority states. Having a Trade Licence ensures that the sources state that the business is eligible to operate in the indicated area and that the Trade Activity conducted in that particular area will not be hampering the health or the environment. In this write-up, we will discuss the advantages of obtaining a Trade Licence, the documents required, and the procedure.

Requirements of Trade License Registration

The requirements of Trade License Registration are as follows

• Eligible businesses - The eligible businesses to acquire a Trade License Registration are shops, stores, commercial establishments, residential hotels and Lodges, medical establishments, or other establishments


• Registration form - business must provide a field registration form from the state department to the business owner.


• Business details - For acquiring the registration, the business details have to be provided with the business sector and the business's nature.


• Number of employees - The business must also disclose the number of employees working in the firm with the employee details.


• Photographs - Passport-size photographs of the applicant must be submitted in the Trade License registration form.


• Signature of the business owner - The business owner's signature must be provided in the registration form; otherwise, the registration form will not be accepted by the licensing department.


• Address proof - The address proof of where the business will be operating from has to be provided, and in case it is a rental, then the NOC from the landlord will also have to be provided along with the lease deed or other ownership documents


• Identity Proof - The business must provide identity proof through a voter card, PAN card, Aadhar card, or passport


• Bank details - The business will have to provide the company's bank account details.


• State-based documents - Based upon the state in which the business is located, the company will have to produce some additional documents, such as NOC from the local municipality, fire department permit, and pollution NOC


• Fees - The document for the Trade license registration the business owner will have to provide the required payments, which will depend and vary from state to state.



It must be noted that the Trade license rules and regulations vary depending on the state in which the business is located. Some companies might have the provision to apply online, whereas some businesses, based on their location, might not have the provision to apply online; only offline applications can be done in such cases.

Characteristics of Trade License Registration

Characteristics of a Trade Licence are as follows:

A Trade Licence needs to be applied before going off the business; there is an exception to this rule in rural areas, and in small cities, the trade license can also be used within 30 days of the business commencement

The License remains valid for one year, and every year, it must be renewed by filling out the form in the same process as the application form, and it needs to be submitted 30 days before the expiry of the Trade license.

Advantages Of Trade License Registration

There are several benefits of a Trade license; in this section, we will discuss the key benefits of the License as follows:

• Ensures the well-being of the employer and employee The Trade license Registration oversees the well-being of the employer and the employee. Further, it regulates the entire business aspect as it is essential for the well-being of the employed and the employee. The act provides rights to the employee and takes care of the financial security of the employer. The significant benefit of this act is that it prevents unethical business practices that would be detrimental to the employees.


• The employee wages and holidays The Trade license ensures adequate Wage and holiday plans for the employees. The business availing the Trade license must take care of this crucial aspect and make the business system more transparent for the employee and other governing authorities.


• Prohibiting unethical business practices Unethical business practices such as child labor are prominent in various factories and industries. The Trade license ensures that no such exercises are done as child labor; therefore, the act contains strict regulations on anti-child work and wages. Any business found to be doing such an act will be immediately penalized, and the License will be canceled.


• Ensures legal compliance This act ensures the business complies with all state laws and regulations. It will prevent the business penalty if the License was not obtained. It also ensures that the business complies with the rules and regulations of the state, thereby protecting the company's employees from unfair exploitation.


• Ensures credibility A Trade license will give credibility to the business and show how it can operate legally and professionally. It will help to build trust and credibility among the customers and other stakeholders.


• Availing government subsidies Government subsidies are available only to businesses with valid licenses. Hence, the company can use a license to reduce operating costs and increase the growth of the business.


• Ensures a Hassle-free experience Businesses needing a Trade license must undergo frequent municipality visits and verification; owning a Trade license could help the business avoid regular inspections, hindering the company's operation.

The private limited company has become popular among Indian entrepreneurs as it provides entrepreneurs with a secure and flexible legal arrangement for their investments.

Documents Required for Trade License Registration

Several documents will be required for obtaining a trade license. The necessary documents are stated as follows:

• Address proof of the business - The address proof must be given. The property tax receipt will have to be provided for the address proof. If the property is an on-call rented property, then the rent agreement or the lease document will have to be provided, and permission from the owner will also have to be given.


• Identity proof - Identity proof will be given to the business owner, by providing the Aadhar card, voter card, passport or PAN card.


• MOA and AOA - The Memorandum of Association and Article of Association will be required for companies.


• Incorporation certificate - The incorporation certificate will also be required in case of a company.


• PAN Card - The PAN will be required if it is a proprietorship business. The PAN might be of the company or the individual applying.


• NOC - The NOC (No Objection Certificate) must be taken from the nearby property owners.


• Site Plan - The business operating site plan must also be provided.



It must be noted that, based on the state, additional documents and the trade license application form might be required, and the prescribed fees might also vary from state to state

Process of Trade License Registration

The process of Trade license Registration will differ from state to state, and some states might have an online registration option, while in some states, the registration has to be done offline.

In case of an online Trade license Registration, the business proprietor or owner must log in to the state labor department's website based upon the business's location. The application form must be corrected with the documents, and the fees must be paid. The prices will differ from state to state. After submission of the document, the form and the documents will be inspected by the governing authority. Once the registration form gets approved, the certificate of the shop and establishment license will be issued to the proprietor.

Now, in case of an offline registration, the application must be submitted to the Chief Inspector of the area where the business is located along with the fees. Here, the certificate issuing authority will be the chief inspector, and the certificate will only be issued after they are satisfied with the authenticity of the application.

Why Adviso?

Trade license Registration involves a wide range of requirements, document preparation, and pre- and post-compliance obligations. It is essential to comply with the specific terms of the Trade License Regulatory Authority. Incorporating a Trade License Registration can be a tedious process without professional support. That’s where Adviso comes in. At Adviso, we provide expert services for online license approval on the State Trade License website. Our Lawyers, CA, and CS experts guide you through every step of the journey to ensure your company lists smoothly and efficiently. With Adviso's expertise and assistance, you can easily navigate the complexities of Trade License registration, saving time and ensuring compliance with all necessary regulations.