Trade License Registration in India

Trade License Registration in India

 

Introduction

Starting a business is an exciting, and at the same time, frightening experience. While a business owner may be eager to simply set up shop and begin selling a product/service, the process is much more complicated. One of the hoops that must be jumped through is the procurement of necessary licensing and registration as mandated by the Government of India. Trade license registration is often a time consuming and expensive process as it may be the case that setting up a single business requires multiple types of licenses, depending upon the sector, type of business ownership, the number of employees…etc. Localized licenses are often required in different geographical units with respect to the various taxes imposed on such units.

The licenses are issued by the authorized departments of the municipal corporations which issue licenses in consultation with other specialized consultative departments like, the Fire Brigade, Health, Engineering, Estate, and so on. The license must be procured before starting manufacturing, exchange or storage of any activity/commodity. The application must be received from the business establishment 3 months before the commencement of the activity. Moreover, once a license is issued, it has to be renewed periodically to ensure that the business is being carried out in accordance with local laws.

Documents

As the process involves a lot of paperwork and legwork,

  • Application Form 353;
  • Form 354 (if motive power is used);
  • Tax paid receipt & 3 copies of blueprint (if any place is being provisioned for the purpose of storing or selling explosives, timber or other combustible material, include a statement showing the boundaries and measurements of such place);
  • Owner/ Neighbour consent letter;
  • CTS extract (City Survey extract) & map.

At the direction of the Ward Health Officer, other documents may be required. If this is the case, then they have to be submitted along with the aforementioned documents for successful application for trade license registration in India.

Trade License Renewal

In India, trade licenses are renewed in the period from January 1st to March 31st. Applications for Trade license renewal of such licenses must be made at least 30 days before the commencement of the year for which renewal is sought. If you delay the renewal process, then you will attract a fine of 50% license fees. The following documents have to be submitted for renewal of trade license –

  • Original License copy;
  • Previous year fees challans;
  • Up to date tax paid receipt.

Denial of Application

If your application for a trade license is denied, then it is possible to appeal to the Standing Committee (Health) by petitioning them with a copy of the denial letter for them to consider the matter.


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