What is a Trade License? -

mltuser

December 28, 2023

What is a Trade License?

A trade license is document that work as a permit that allows applicant to start a specific business/trade in a particular locality/area. However, the license dose not allow the license holder run another business or trade other than for it is issued and this doesn’t give property ownership to the trade license holder. It is provided by the state municipal corporation. The application needs to be submitted 30th day before the business or from the date on which trade started. Moreover, every business regardless of business activity is required to obtain trade license. The government has made trade license compulsory for those who seeking to start a business and to regulate various trade activity in the country.

Purpose of trade license:

The government issuing Trade license is to control the market activities that no one uses unethical and wrong method of business activities.

It is mandatory for any business or trade to get trade license to avoid heavy penalty as any business or trade without trade license will be considered illegal.

Eligibility for trade license:

· Any resident of Delhi who is 18 or above can apply for trade license?

· The applicant should not have any criminal records against them.

· The business should have legal permit.

Benefits of trade license:

· A Licensed business will enjoy greater goodwill and will attract the customers and investors than an unregistered entity.

· It protects the owners against certain types of liability

· In order to do ethical business, practice the person can apply for obtaining Trade License Registration which ensures the safety measures and guidelines

· If a person does not get a Trade license as required under law and starts any business than a government can impose fine and penalty on such person. It can also result in the closure of such a business.

Categories of trade license:

· Food establishment license: hotels, restaurants, canteen, food stall, bakeries, the sale of vegetables and meat etc.

· Industries license: small and large-scale manufacturing factories, cybercafé etc.

· Shop license: a barber shop, dhobi shop, candle manufacturer etc.

Documents requires:

· Lease documents/agreement in case of premises are on lease

· Occupation certificate

· ID proof of applicant (for individual it is Aadhaar card and f or company, it is PAN card & certificate of incorporation)

· Registration certificate from concerned authority

3 important points before you apply it:

· Application has to made before you start running your business

· Renewal of application must be filled in 30 working days before expiry of the license

· Once license issued and it has to be maintained on annual basis

Application procedure of trade license:

These are the below mentioned steps that we need to follow in order to apply Trade License : –

Step 1: first we need to visit MCD’s official website (Municipal cooperation of Delhi)

Municipal Corporation of Delhi

Step 2: In step 2 you have to select region North DMC, South DMC or East DMC as per your area. After selecting the region then click on other online services and after that select Gen. Trade/Storage Licenses.

Step 3: After that we have to signup/register us as a new user.

Step 4: – we need to fill required information after filling form successfully then click on submit button.

Step 5: – Click on General Trade License.

Step 6: –

· Once we are registered as a new member.

· If we want to apply for new license then click on APPLY NEW GT LICENSE otherwise for renewal, we click on RENEWL OF GT LICENSE.

Step 7: – Before completion of application we need to fill several columns. The columns we need to fill are mentioned below: –

Details and document we need to fill

Step 1: – first of all we have to fil the applicant basic details like: – Name, DOB, Address etc.

· First, we need to fill applicant details

Name of applicant
Fathers name
Date of Birth
Latest Photograph (in jpeg/jpg format and size should not exceed 50kb)
Address
Email id
Mobile no.

Step 2: – After filling the applicant basic details, then fill classification of trade.

· Classification of trade

Trade premises
Trade description
Category (auto select)

Step 3: –

· Property details

1. UPIC Number (Your property ID can be found in previous property tax challan/receipts.)

2. UPIC Address

3. Floor no.

4. Covered area (in Sq. Mts)

5. Ownership type

Step 4: –

· Total unit area

Total unit area (in sq. mts)

Step 5: –

· Address of unit (Address of property)

1. Property address

2. Street name

3. Locality

4. Colony

5. Ward (You can find on Income tax site)

6. Zone

7. Pin code

8. Colony category

9. Electric connection number

Step 6: –

· Establishment details

1. Name of Unit/Establishment

2. Year of Establishment

3. GST Number

4. PAN

Step 7: –

License Valid upto

Step 8: –

· Types of constitution

1. Types of constitution

2. Relationship of applicant with company

Step 9: –

· List of Partners

1. Name of Partner

2. Address

3. Designation of Applicant in company

Step 10 – After filling the required document we need to attach specific document for completion of application. Then make the prescribe fees for the registration.

· Upload document

1. Id proof

2. Photograph of Establishment

3. Proof of legal occupancy of the establishment

4. Site plan