Trade License

Ideal for trading business

Trade License


Procedure for Trade License

Step 1
Complete our Simple Form

You are required to fill your details in our simple questionnaire and submit documents.

Step 2
Register for Trade License

You are required to give all the required information to Register Trade License.

Step 3
Submission of documents

We will create all the required documents and applications and file them on your behalf.

Step 4
Your work is now completed

Your License will be sent through courier. It is suggested to keep 2-3 copies of it.

What is Trade License

Every firm need a trade permit from controllers, whether local or government. A trade licence is a document that allows and certifies you to engage in a specific trade or business for which it is issued. It does not grant responsibility for property or authorisation for any other action save the one specified. In consultation with other specified consultative departments such as Health, Estate, Engineering, and others of a similar nature, the municipal corporation approves the licencing department and allots licences. In this context, it is critical for every business foundation to get primary licences from the Licence Department before beginning any manufacturing, commerce, or storage activities.

Documents Required for Trade Licence

Eligibility For LLP Registration

Candidate more likely achieved the age of 18 years

Candidate must not have any criminal records

Organizations must be legally passable

The municipal corporation’s licencing department issues the Trade Licence in numerous areas such as engineering, industries, health, and so on.

The Indian government allows the licence in order to control in cities around the country. It allows for the transmission of messages or documents and certifies the continuation of any business or transaction wherever it is found. The granting of the licence varies by state and is determined by local government entities, such as municipal rules and regulations.

Types of Trade License

Shop License

This licence is required for everyone who wants to start a shop. The store is frequently of any retail sort.

Industrial License

This type of licence is essential for any company that wants to open a small or medium-sized industrial unit.

Food Establishment License

This licence is required for any establishment that wants to work in the food and beverage business. The licence is valid for cafes, restaurants, butcher shops, bakeries and vegetable markets.

Why Trade License

Over the last 40 years, trade licences have been incorporated into the country and are governed by municipal corporation acts controlled by state governments. These advantages ensure that no one is solely influenced by the disruption and health risk of any trade or industry. The government has made it mandatory to complete a specified business or trade in a specific region and to ensure that no incorrect business practises are carried out. This licence creates a public agreement that all businesses will follow essential rules, guidelines, and security measures. This licence was created to ensure that the legislature may oversee various trade activities in the country.

Validity of Trade License

Each business that completes a trade or business needs an exchange permit. An exchange permit is only valid for one year. Several various arrangements, norms, and guidelines must be followed by the enrolled individual. In the event that the individual in default fails to follow the enrollment states of exchange permits and begins any exchange movement prior to the issuing of this permission, the individual in default will be held accountable for the coordinated punishment. Furthermore, legal action can be taken against the defaulter.

Trade License Renewal

From January 1st to March 31st, commercial licences in India are reinstated. A municipal authority-issued licence is valid for one year and must be renewed every year. The application for licence restoration must be submitted within 30 days of the license's expiration date. If the renewal process is delayed, a fine will be imposed based on the rules and regulations of the issuing body.

The documents that need to be submitted for renewal of the Trade license are the following:

How is Trade License different from Company Registration?

Company Registration establishes a new corporate structure, whereas a Trade Licence allows an existing corporation to begin a new activity or operation. Any active firm can register as a legal entity, and anyone can set up another structure as a registered organisation. A Trade Licence is one of the certificates that a previously registered firm receives if it is ready to undertake any extra activity. Investors are often hesitant to invest in any sole-proprietor initiatives that are linked to the element heated by a legal structure such as Company, LLPs, and so on.

Differences based on validity, authority, documentation, etc are briefly discussed in the Table below.
Basis of difference
Company Registration
Trade License

The new business entity is formed to carry on the business.

The existing entity takes the approval for carrying a particular type of activity


Directors must not be minor. The company should be registered with a minimum requirement of capital.

The applicant must have crossed 18 years of age with no criminal record. Business shall be legally authorized by its object to carry on such other activity for the trade license is acquired.


The following are the types of companies: Private Limited, Public Limited, OPC, etc.

Types of trade license: Shop License, Industrial license, Drug license, etc.

Processing time

ROC takes 3-4 days to issue Certificate of Incorporation

Concerned authority takes 7 to 10 days for processing of an application


Valid for lifetime once allotted

Valid for one year


They are not renewed as they are valid for a lifetime.

They are renewed after their expiry by submission of necessary documents.

Frequently Asked Questions

Who Issues the trade license?

The municipal authority of the particular state is the accountable body for the issuance of the trade license.

Who need trade license?

Every trader involved in a general trading activity within the national limits of any municipal corporation is needed to get a trade license. The class of trade license varies from state to state and is based on the nature of the business.

How much time does trade license process takes?

It typically takes 8 days. In case, documents are incomplete and erroneous, it may take more time.

What to do, if license is denied by the commission?

If the license is denied by the commission, then you may appeal to the standing committee by delivering the denied letter.

What will be the outcome if I don't get trade license?

According to the Act, running an unapproved Trade is an offense. The concerned authorities may seize or lock your Trade business with or without prior intimation.

Can the license holder's proxy can renew the license if license holder unable to come?

The appropriately approved manager or agents may be permitted where there are no complaints by his business. If there is any complaint, the proprietor must go for compliance and also renewal.

When is it possible for a license to be suspended or revoked?

In this scenario, the licence holder is in violation of the licence terms and causing a nuisance to neighbours or the environment.


Get a Quote