TAXAJ

Trade License

A trade license is a document/certificate that gives the permission to the applicant (person seeking to open a business) to commence a particular trade or business in a particular area/location. However, the license does not allow the holder to any other trade or business than for it is issued. Furthermore, this license does not pass on any kind of property ownership to the holder of the license.

Trade license was introduced in the late '80s in the country in the last forty years and is being regulated through municipal corporation acts by the state governments. This regulation helps ensure that no one is severely affected by any trade or business's nuisance and health hazards.

Trade License is required for every business or trade to carry out the operations within the local municipality. 

Trade license is a certificate issued by the Municipal Corporation, permitting an applicant to carry out a particular trade/business which is indicated in its application. No other rights are created out of the license, such as a claim on the property, or the ability to engage in some other activity which was not specified in the application.

Trade licenses were required in order to effectively regulate businesses and ensure that no other person is severely affected due to the creation of nuisance or health hazards in the course of operation of the business.

Compulsions

Every State usually requires a business to apply for a license at least 30 days before commencing operations and requires the license to be prominently reviewed once obtained.

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About This Plan

Avail various benefits under the scheme ? Apply for Trade License Registration with TAXAJ

Created by potrace 1.15, written by Peter Selinger 2001-2017

Timeline

It usually takes 3 to 5 working days.

Buy Now
Services Covered
Who Should Buy
How It's Done
Documents Required
Services Covered

  • Drafting documents
  • Filing of forms with Authorities
  • Documented Follow-up
  • Business hours - CA support
Who Should Buy
  • Any business entity or Individual
How It's Done

    • Purchase of plan
    • Upload documents on Vault
    • Drafting of documents
    • Submission of documents and application with Department
    • Receipt of Registration letter
Documents Required

  1. Name, Contact Number and Email Id of Stakeholder.

  2. Self Attested PAN, Aadhar & Passport size photo of Stakeholder.

  3. Specimen Signatures of Stakeholder.

  4. Latest Electricity Bill/Landline Bill of Registered Office.

  5. NOC from owner of registered office. (If Owned)

  6. Rent Agreement from Landlord. (If Rented/Leased)

  7. PAN, TAN, COI of the Business Entity

  8. Cancelled Cheque in business name 

MCD Trade License Explained in this video by our Expert!

Categories:

a. Industries license: small, medium and large scale manufacturing factories

b. Shop license: Dangerous and Offensive trades like a sale of firewood, cracker manufacturer, candle manufacturer, barber shop, dhobi shop etc.

c. Food establishment license: Restaurants, hotels, food stall, canteen, the sale of meat & vegetables, bakeries etc.

Eligibility:

The applicant must have crossed the age of 18 years

The applicant must not have any criminal records

Business must be legally permissible.

Why Trade License?

In the last forty years, trade license has been introduced in the country and is being regulated through municipal corporation acts by the state governments.

This helps in ensuring that no one is severally affected by nuisance and health hazard of any trade or business.

It has been made necessary by the government to carry out any particular business or trade in a particular area and to ensure that no one is carrying out any unethical business practices.

This license creates a harmony in the society that every business is following relevant rules, guidelines and obeying the safety measures. This license was made obligatory to make sure that the government can regulate various trade activities in the country.

The core objective of issuing a this is to control the locations by restricting the people from executing certain types of businesses from their home location to maintain the business environment and locality environment.

Delhi Shops & Establishment Act, 1954

The Shops and Establishments Act regulates the following aspects of doing business in India. Under the Shop and Establishment Act, the following rules are based on which the Delhi trade license is issued. Every shop & establishment must be registered under this Act within 30 days of commencement of work.

👉 The working hours on a daily and weekly basis.

👉 Provisions for spread-over, rest interval, opening, and closing hours closed days, national and religious holidays, overtime work.

👉 Regulation of employment norms for children, young persons, and women.

👉 Rules and regulations concerning paid leaves.

👉 Rules and conditions for employment and termination of service.

👉 Regulations concerning the maintenance of records and registers.

👉 Obligations of employers as well as employees.

👉 Precautions against fire, accidents, etc.

👉 Regulations concerning the display of notices.

👉 The responsibility of the employer and employee towards each other, the firm and the society.

Businesses Requiring Trade License

A trade license is required for any commercial establishments that fall into the following categories:

  • A place or administrative service where people are employed or mostly engaged in office work.
  • A cafe, a hotel, a restaurant, a boarding or eating house, or any other type of refreshment establishment.
  • A theatre, a cinema, or any other public amusement or entertainment facility.

The requirement to Obtain Trade License

The government has made it obligatory to obtain a trade license in order to verify that one is not engaging in unethical business operations and is adhering to all applicable rules, safety measures, and guidelines. The owners of a licensed firm are protected from some sort of liabilities. Personal funds would not be at risk in any settlement if damage or injury occurred as a result of corporate acts or doings. Different types of trade licenses provide varying levels of protection.


List of Required Documents

At the time of completing the application form for a Delhi trade license, the following information or documents/records must be provided.

  • Individual Address Proof and Identity Proof.
  • Affidavit • Company’s Certificate of Incorporation, MOA, and AOA
  • Bank Statement and Cancelled Cheque
  • The company’s Certificate of Incorporation, MOA, and AOA.
  • Proof of legal occupancy of the establishment/unit or a government agency’s allotment letter.
  • Documentation proving the start of a business.
  • The constitution’s Lease Deed.
  • Documentary evidence of the absence of unauthorized construction.
  • The land-owning agency’s NOC (No Objection Certificate).


Documents required for a trade license renewal:

  • Address and Identity Proof
  • Original License Copy
  • Old G-8 Receipt
  • License Renewal Application


Documents required for a duplicate trade license to be issued:

  • Indemnity Bond is the required type
  • First Information Report (FIR).

Registration/ Processing Fee

The application will be processed for Rs. 500/-, which includes handling charges of Rs. 50/- as well as service charges. The annual license fees will vary depending on the type of business. The following is a list of the trade license fees that must be paid:


CategoryArea of the EstablishmentFee/Charges
Category AConforming Area / Local Commercial Area

  

(i) Rs. 200/ P.A. up to 10 sq. Meter.

(ii) Rs.500/-P.A between 10 Sq. Meter to 20 Sq. Meter.

(iii) Rs. 50per Sq. Meter P.A above 20 Sq. Meter.

Category BNon-Conforming Area / Household(i) Rs. 200/ P.A. up to 10 sq. Meter.

(ii) Rs. 500/-P.A between 10 Sq. Meter to 20 Sq. Meter.

(iii) Rs. 50per Sq. Meter P.A above 20 Sq. Meter.


Application Procedure for Trade License – Online Method

To apply for a trade license, applicants must complete the following procedures and submit the application form online.


Visit the MCD portal

Step 1: Applicants must go to the MCD’s official website (Municipal Cooperation of Delhi).

Step 2: Choose either North DMC, South DMC, or East DMC as your region.

Apply for Trade/ Storage License

Step 3: On the home page, click the “Trade/ Storage License” tab.

Step 4: Next, click on ‘Application for New License,’ which will take you to the application page for a new trade license.

The following is the link to the application form for a Trade/Storage License:


Fill in the right credentials

Step 5: The applicant must then fill out all of the requested information, such as New trade license information, Applicant’s address information, other owner information, Type of license, Business information, NOC from a fire department, Fee information, Property Tax information, and so on, before clicking the ‘Submit’ icon.


Upload Requested Documents

Step 6: Fill out the rest of the application form and upload the required/mandatory documents before submitting it.

Step 7: Click the Submit icon after you’ve uploaded all of the requested documents (scanned documents).


Verification of Documents

Step 8: The documents will be verified by ULB staff after the application has been submitted.


Generate Application Number

Step 9: After successfully submitting the application form, a unique application number will be generated automatically.


Make Payment

Step 10: The authorized official will compute and generate the fee-seeking requisite payment from the applicant for issuing the License once the application has been scrutinized.

Step 11: The applicant will be alerted by SMS or email to make the required payment at the registered mobile number and email address.

Step 12: To make a payment, you must complete all of the following information.

  • UBL name
  • Collection date
  • Collection location
  • Payment method
  • Bank information

Step 13: After that, you must fill out all of the payment information provided.

Step 14: Then, to make an online payment, click the “Make Payment” icon. As an acknowledgment slip for the amount paid, a receipt will be generated.

The appropriate authority will check and issue the Trade license once the payment has been received.

Application Procedure for Trade License – Offline Procedure

To apply for a trade license in Delhi, candidates must complete the following procedures and submit the application form online.


Approach the Municipal Cooperation

Step 1: The applicant must first go to the licensing department, which is located within a specific municipal limit. The applicant must first go to the licensing department, which is located within a specific municipal limit. The applicant must first go to the licensing department, which is located within a specific municipal limit. The applicant must first go to the licensing department, which is located within a specific municipal limit. The applicant must first go to the licensing department, which is located within a specific municipal limit.


Step 2: The applicant must submit an application for a trading license to the executive. The applicant must submit an application for a trading license to the executive. The applicant must submit an application for a trading license to the executive. The applicant must submit an application for a trading license to the executive. The applicant must submit an application for a trading license to the executive.


Note: You may also obtain the trade license application form from the MCD (Municipal Cooperation of Delhi) official web domain. The License application form is reproduced here for your convenience.


Fill out the right credentials

Step 3: Complete the application form completely and accurately without making any mistakes. Fill out the application form with the following information.

  • New trade license information
  • Applicant’s residence information
  • Alternate owner information
  • Type of license


Step 4: You must submit an application form in the appropriate format, along with all supporting documentation, to the concerned operator.


Attach Required Documents

Step 5: After submitting an application, the applicant must attach the required papers to the application form. Then pay the registration fees as instructed.


Step 6: After submitting the form, the user will receive a transaction number to the registered cellphone number, which will contain information about the registration’s success. To check the status of the application online, the application must make a note of the transaction ID.

Validity Period of Trade License

From the date of issue, the Trade License Certificate would be valid for three years. As a result, it must be renewed every three years by paying a license cost for that time period.

Check Status

Go to the MCD’s official online portal website to check the status of your application. You must click on the Application Status link on the website. To check the status of your application, enter your application number and click the Submit button.

Renewal of Trade License

Applicants can apply for a trade license renewal by selecting the Renew License link from the official site and clicking on the ‘Renewal’ link. Your application for a trade license will be complete once you have paid for the renewal.

Download Trade License

You will receive a notification on your registered mobile number once your application has been approved. The data of the trade license will be updated in the applicable state’s records site. Enter the Certificate number as well as the application number into the official portal. Then press the “Submit” button. Finally, you can obtain a copy of the certificate of trading license.