Trade License Requirement In INDIA
Trade license is the way to regulate specific business from a particular locality. It is regulated to ensure that the citizen is not adversely affected by Health Hazard and Nuisance by the improper carrying of a trade. The trade license is a means to ensure that the manner and locality in which the business is being carried on is according to the relevant rules, standards and safety guidelines. The provision of trade license is laid down by the State government to monitor and regulate the trade within a city. It is issued by the municipal corporation of the place where the business is located.
Any unauthorised running of trade is an offence which may result in a substantial penalty and subsequent prosecution. An application must be made before the commencement of the activity. However, Application for renewal must be filed at least 30 days before the expiry of license. Trade License(s) are issued by the authorised department of a municipal corporation in consultation with other specialised departments like fire brigade health engineering department having jurisdiction over the business. Trade License can be availed only if the business is run in the Permitted area. with small shops of maximum 20 sq.m. on the ground floor only.