Overview of Trade License Registration

A Trade License is a permission letter from the local Municipality or Corporation to carry out specified business activity in a particular locality. The rules and regulations for acquiring a Trade License differ from state to state and in order to smoothly conduct business one must operate as per guidelines suggested by the respective states.

An individual can file a petition for three types of Trade license as per the nature of the business.

The first one covers the shopkeepers willing to operate a retail business from a shop.
The second category is for industrialists managing small or medium-sized industries.
And the third one is applicable to food joints such as Hotels, Restaurants, Cafes, Bakeries, and others.
In most regions, the Trade License is approved by the commissioner of the relevant state authority after a thorough inspection. The authority examines the type of business for which the application has been filed and ensures that the entity would not be a cause of danger or inconvenience to the locality. It is suggested that an entity applies for the License at least before 30 days of inception of business activities.

Any unauthorized operation of trade/business is a serious offense which may result in a penalty and subsequent prosecution.