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Overview of Trade License

A Trade License is an official document or certificate issued by the local municipal authority that permits a person or entity to carry out a specific business or trade in a particular area. It ensures that the business complies with the relevant rules, safety standards, and local laws.

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Purpose of a Trade License

  • To regulate business activities within a locality.
  • To ensure public health and safety.
  • To prevent illegal business operations.
  • To make businesses accountable to civic regulations.

Who Needs a Trade License?

Every business entity, whether operating as a sole proprietorship, partnership, company, or LLP, engaged in manufacturing, trading, or service-based activities, must obtain a trade license before starting operations.

Examples include:

  • Restaurants, hotels, bakeries
  • Salons, gyms, clinics
  • Manufacturing units
  • Shops and retail outlets

Issuing Authority

The Municipal Corporation or local government body where the business is located is responsible for issuing trade licenses.

Types of Trade Licenses

  • Shop License: For trading businesses or retail establishments.
  • Industrial License: For small or large manufacturing units.
  • Food Establishment License: For restaurants, cafes, bakeries, etc.
  • Professional License: For professionals like doctors, lawyers, or architects running private practices.

Key Requirements

  • Business address proof
  • Identity & address proof of the applicant
  • PAN card of the applicant or business
  • Rent agreement or ownership proof of premises
  • NOC from neighbors or landlord (in some cases)
  • Certificate of incorporation (if applicable)

Validity and Consequences

Validity and Renewal
  • Typically valid for 1 year.
  • Must be renewed annually, before the expiry date, to avoid penalties.
Consequences of Not Having a Trade License
  • Monetary penalties
  • Legal action or business closure
  • Cancellation of business registration

How We Help

At FirstStartup, we provide:

  • End-to-end assistance for obtaining trade licenses
  • Quick processing with complete documentation support
  • Renewal services and compliance guidance
  • Local liaisoning with municipal authorities

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