Edit Content

We are the Best

Get free Consultant With out Experts.

Other Services

Fundraising
NGO
Property & Personal
Lawyers & Experts

Notice: File your Company Audit before the 30th September deadline. Talk to our expert

Trade License

Guaranteed application submission in 7 days or your money-back T&C

Register Your Company Today

This is the heading

India’s highest-rated
legal tax and compliance platform.

50,000+ businesses incorporated since 2011

Get ₹1000 cashback* upon your incorporation with our banking partners offer. T&C*

Banking partners

Vakilsearch’s incorporation experts register over 1500 companies every month.

Standard

Perfect for initiating company registration
1499
999 + Govt. Fee (to be paid later)
  • Expert assisted process
  • Your company name is reserved in just 2 - 4 days
  • DSC in just 4 - 7 days
  • SPICe+ form filing in 14 days*
  • Incorporation Certificate in 14 - 21 days
  • Company PAN+TAN
  • DIN for directors

Fastrack

Quick company registration in 7 to 14 days
2999
1,499 + Govt. Fee (to be paid later)
  • Expert assisted process
  • Your company name is reserved in just 2 - 4 days
  • DSC in just 4 - 7 days
  • SPICe+ form filing in 14 days*
  • Incorporation Certificate in 14 - 21 days
  • Company PAN+TAN
  • DIN for directors
Popular

Premium

+ annual compliance to keep your business on track
24999
14,999 + Govt. Fee (to be paid later)
  • Expert assisted process
  • Your company name is reserved in just 2 - 4 days
  • DSC in just 4 - 7 days
  • SPICe+ form filing in 14 days*
  • Incorporation Certificate in 14 - 21 days
  • Company PAN+TAN
  • DIN for directors

Not sure about the packages?

Talk to our experts to kickstart your business registration process.

Companies Act, 2013 (India)

The Companies Act, 2013 regulates the incorporation of companies in India, including the requirements for a company registration certificate.

A Trade License is an official document issued by local government authorities that grants permission to individuals or businesses to carry out specific trade or business activities within a particular area. It ensures that the business complies with local laws and regulations and does not pose any risks to public health, safety, or the environment.

A Trade License is a legal document issued by local government authorities that allows a business to operate in a specific location and conduct specific trade or commercial activities. It ensures that the business complies with local laws, public safety measures, and environmental regulations.

Legal Authorization

Provides legal permission to conduct business operations within a specific area, ensuring compliance with local laws.

Boosts Consumer Trust

A trade license enhances the credibility of the business, making customers feel confident about its authenticity.

Prevents Legal Issues

Helps avoid fines, penalties, or closure of the business due to unauthorized or illegal operations.

Promotes Ethical Business Practices

Ensures businesses follow regulations that prioritize public health, safety, and environmental standards.

Facilitates Smooth Operations

Streamlines the process of setting up and running a business by meeting all necessary compliance requirements.

Encourages Local Development

By adhering to regulations, businesses contribute to structured growth and development within their locality.

Eligibility Criteria for a Trade License

To obtain a trade license, businesses must meet certain eligibility requirements set by the local government or municipal authority. The criteria may vary slightly depending on the type of business and the location, but the general requirements include:

Business Entity

  • The applicant must be a legally registered entity, such as a sole proprietorship, partnership firm, LLP, or company.

Valid Business Address

  • The business should have a registered address in the area where the license is being applied for, and this address should be suitable for carrying out business activities.

Compliance with Local Zoning Laws

  • The business location must comply with local zoning regulations, meaning the area should be designated for the type of trade you intend to carry out (e.g., commercial or industrial zones).

Health and Safety Standards

  • For certain types of businesses (such as food, healthcare, or manufacturing), the applicant must adhere to health, safety, and environmental standards. This may require specific permissions from other regulatory bodies.

No Criminal Record

  • The applicant or the business owners (in case of a partnership or company) must not have any criminal records, particularly related to fraud, dishonesty, or violations of public safety laws.

Required Documents

  • The business must submit all required documents, such as identity proof, address proof, business registration certificates, and other specific documents as required by local authorities.

Payment of Fees

  • The applicant must pay the necessary application fees, which vary based on the type of business and location.

 

Criteria Trade License

Business Registration Details

  • Proof of business registration (e.g., sole proprietorship, partnership deed, LLP registration, or company certificate).

Identity Proof of Applicant

  • A government-issued ID such as Aadhaar Card, Passport, or Voter ID of the business owner or authorized signatory.

Address Proof

  • Address proof of the business premises (e.g., electricity bill, water bill, property tax receipt, or rent agreement).

Photographs

  • Passport-size photographs of the business owner and authorized signatories (if applicable).

Details of Business Activity

  • A clear description of the business activity or trade being carried out, including a classification of the industry (e.g., manufacturing, retail, service).

Health and Safety Compliance (if applicable)

  • For specific businesses like food-related or healthcare services, provide compliance certificates related to health and safety norms.

No Objection Certificate (NOC)

  • If required, a No Objection Certificate from the Fire Department, Pollution Control Board, or other regulatory authorities depending on the nature of the business.

PAN Card

  • PAN card of the business owner or the company, as applicable.

Fee Payment

  • Proof of payment for the application fee, which is generally based on the type and size of the business.

Additional Licenses or Permits (if applicable)

  • Any other industry-specific licenses or permissions, such as FSSAI for food-related businesses, Shop and Establishment License, etc.

Necessary Documents for Trade License Application

Business Registration Certificate

  • A copy of the business registration document, such as:
    • Sole Proprietorship: GST Registration, Shop and Establishment Certificate.
    • Partnership Firm: Partnership Deed.
    • Company: Certificate of Incorporation (for Pvt. Ltd. or Ltd. companies).

Identity Proof of Applicant

  • Government-issued identity proof of the applicant (e.g., Aadhaar Card, Voter ID, Passport, or Driving License).

Address Proof of Business Premises

  • Proof of the business address, such as:
    • Recent utility bills (electricity, water, or landline telephone bill).
    • Rent agreement (if the business is on rent).
    • Property documents (if the property is owned). 

Passport-Size Photographs

  • Passport-size photographs of the business owner or authorized signatory.

No Objection Certificates (NOC)

  • Depending on the nature of the business, a NOC from the Fire Department, Pollution Control Board, or other relevant authorities may be required.

PAN Card

  • PAN card of the business owner or company, as applicable.

Health and Safety Compliance Documents (if applicable)

  • For businesses in industries like food processing, healthcare, etc., provide certifications from health or safety authorities (e.g., FSSAI for food businesses).

Trade or Business Activity Details

  • A detailed description of the trade or business, along with the nature of the activity being conducted (e.g., retail, manufacturing, service).

Shop and Establishment License

  • This may be required for certain businesses that deal with customer service, such as retail stores or service providers.

Documents necessary for filing SPICe+ form (INC-32) for the registration of a private limited company are outlined as follows:

A. For Indian Nationals serving as directors and subscribers:
  • Affidavit on stamp paper: a declaration by all subscribers affirming their intention to become shareholders of the company
  • Office address proof like the Rental Agreement or Ownership Deed
  • Electricity bill, water bill and other utility bills of the last two months
  • Copy of approval if required
  • Trademark registration details
  • NOC from property owner
  • Proof of identity and address
B. Required Documents For Foreign Nationals serving as directors/Shareholders
  • Passport: Proof of identity
  • Address proof: Accepted documents include a driving license, residence card, bank statement, or government-issued identification with a valid address.

Types of Trade License

In India, private limited businesses are differentiated into different types based on share distribution and other aspects. Here are 3 different types of PVT ltd Companies:

Manufacturing Trade License

This license is required for businesses involved in the production or manufacturing of goods. It ensures that businesses meet safety, health, and environmental regulations during the production process. Examples include factories or assembly units.

Commercial Trade License

A commercial trade license is required for businesses that engage in retail, wholesale, or service-based activities. This could include shops, offices, and service providers like restaurants, salons, or repair services.

Industrial Trade License

This license applies to businesses operating in industrial sectors, such as construction, heavy machinery, or large-scale manufacturing. It ensures that businesses adhere to environmental and safety laws specific to the industrial sector.

Characteristics of a Trade License

Legal Permission to Operate

  • A trade license grants businesses the legal authority to operate in a specific region or locality, ensuring that the business complies with local laws and regulations.

Specific to Business Type

  • The license is issued based on the type of business being conducted, whether it is a manufacturing, commercial, or industrial trade. Different types of businesses may require different licenses or additional permissions.

Compliance with Health and Safety Regulations

  • For businesses in certain sectors (e.g., food, health, construction), the trade license ensures adherence to health and safety standards, protecting both the public and workers.

Renewal Requirement

  • A trade license is not a one-time issuance; it must be renewed periodically (usually annually) to keep the business operations in compliance with the law.

Local Jurisdiction

  • The license is usually issued by local government bodies or municipal authorities and is valid only within that jurisdiction. Businesses must obtain separate licenses if they operate in multiple areas.

Ensures Ethical Business Practices

  • A trade license ensures that businesses follow ethical practices and adhere to environmental, health, and safety guidelines. It plays a role in maintaining public trust and protecting the community.

 

How to Register for a Trade License

step

Determine the Type of License

  • Identify the type of business you are operating (e.g., manufacturing, commercial, or industrial) to ensure you apply for the correct trade license. Some businesses may also need additional permits depending on the nature of the trade (e.g., food businesses may require FSSAI certification).

Gather the Required Documents

Ensure you have all the necessary documents prepared, including:

  • Business registration certificate (GST Registration, Shop and Establishment Certificate, etc.)
  • PAN Card of the business owner or company.
  • Proof of business address (e.g., utility bill, rent agreement).
  • Identity proof of the applicant (Aadhaar card, passport, etc.).
  • Passport-size photographs of the business owner or authorized signatory.
  • No Objection Certificate (NOC) from authorities like the fire department (if required).
  • Health and safety compliance certificates (for certain industries).

Fill the Application Form

  • Obtain the trade license application form from your local municipal corporation or online (depending on your jurisdiction). Many cities now offer online application portals for easier submission.
  • Complete the application form with accurate business and contact details.

Submit the Application

  • Submit the completed application form along with the required documents either physically at the local municipal office or online through the designated portal.
  • Some municipalities may require a visit to the office for verification.

Pay the Application Fee

  • The application fee varies depending on the type and scale of the business, as well as the location. Make the payment via the accepted methods (e.g., online payment, challan, or in-person payment).

Inspection (if required)

  • Depending on the type of business, the authorities may conduct an inspection of your business premises to ensure compliance with local regulations (health, safety, zoning laws, etc.).

Issue of Trade License

  • Once the application is processed and the inspection (if required) is completed successfully, the local authority will issue the trade license.
  • The license will specify the nature of the trade, validity period, and other important details.

Renewal (Annually or as Required)

  • Remember that trade licenses typically need to be renewed periodically (usually annually). You should renew the license before it expires to avoid penalties or suspension of business operations.

 

Private Limited Company Registration Fees

There are several criteria that determine the total fees structure to form a private limited business in India. Fees like stamp duty and government fees are required. Professional fees will be assessed if you engage any experts. Apart from this, applications for filing DSC, DIN, Notary fees, PAN, TAN and GST registration should be accounted for. An all-in-one platform for online private limited company registration in India is offered by Vakilsearch. Depending on your demands, you can choose from our affordably priced packages and begin the registration process.

Get Free Consultancy For All Services.