A Trade License is an official permission issued by a local municipal authority that allows individuals or businesses to carry out specific commercial activities in a particular area.
🔹 Purpose
It ensures that a business complies with local laws, safety standards, and zoning regulations before starting operations.
🔹 Who Needs It
Any business involved in:
Retail or wholesale trade
Manufacturing
Food and beverage services
Health or educational institutions
Service providers (like salons, repair shops, etc.)
🔹 Documents Required
Commonly:
Proof of business address (rental agreement/property tax receipt)
Identity & address proof of the applicant
PAN card of individual or business
Certificate of incorporation (for companies)
NOC from property owner (if rented)
Layout plan of the premises
🔹 Validity
Generally valid for 1 year, renewable annually.
🔹 Penalties
Operating without a trade license can lead to:
Fines
Closure of business by authorities