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A Trade License is a legal certificate issued by the local Municipal Corporation or Municipal Authority that permits businesses to operate within a specific area or jurisdiction.
Under the Municipal Corporation Act, every business establishment must obtain a Trade License before commencing operations. This license certifies that the business follows all safety, health, and environmental regulations set by the local authority.
The Trade License ensures that businesses don't engage in any practices that might endanger the health, safety, or well-being of local residents. It must be renewed annually (typically between January 1 to March 31) to remain valid.
Any business or commercial activity operating within municipal limits requires a Trade License.
Trade licenses are categorized based on the nature of business activity.
Required for all food service establishments including restaurants, cafes, bakeries, and food processing units.
For manufacturing and processing units where machines and electricity are used, such as milling units and factories.
For high-risk activities including manufacture of fireworks, explosives, chemicals, and hazardous materials.
Government fees vary based on the type of business, area, and municipal corporation.
| Entity Type | E-Filing Fee | Notes |
|---|---|---|
| Small Shops (< 500 sq ft) | ₹500 - ₹2,000/year | Varies by city/municipality |
| Medium Establishments | ₹2,000 - ₹5,000/year | Based on area and nature of business |
| Large Commercial Units | ₹5,000 - ₹25,000/year | Based on turnover and area |
| Manufacturing Units | ₹3,000 - ₹20,000/year | Based on machinery and production |
| High-Risk Activities | ₹10,000 - ₹50,000/year | Includes additional clearances |
Varies by city/municipality
Based on area and nature of business
Based on turnover and area
Based on machinery and production
Includes additional clearances
Documents required vary based on business type and entity structure.
Photo ID Proof (Aadhaar & PAN – both mandatory)
Passport Size Photographs
Property Ownership Proof or Rent Agreement
NOC from Property Owner
Property Tax Receipts
Business Plan
Worksheet (Format attached)
Or view by entity type:
Gather all required documents based on your business type.
Submit application with documents to the Municipal Corporation along with required fees.
Municipal inspector visits your business premises to verify compliance with regulations.
Upon successful inspection, the Trade License is approved and issued.
Gather all required documents based on your business type.
Submit application with documents to the Municipal Corporation along with required fees.
Municipal inspector visits your business premises to verify compliance with regulations.
Upon successful inspection, the Trade License is approved and issued.
Trade License provides multiple advantages for your business.
Trade license establishes your business as a legal entity, recognized by government authorities.
Builds trust with customers, vendors, and financial institutions. Essential for business loans and partnerships.
Ensures your business complies with local health, safety, and environmental regulations.
Operating without a trade license can result in heavy fines, penalties, or business closure.
Enables participation in government tenders and access to various business schemes.
Required for opening business bank accounts and applying for business loans.
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