Trade License Registration

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

A 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.

How can we apply for a trade license in Delhi?

A 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.

In Delhi, Municipal Corporation of Delhi (MCD) is authorized to issue the trade license.

Why we need to obtain Trade License

Trade License is required to protect businesses from damages or injuries that occur the business actions or doings. The various types of trade licenses provide different kinds of protection. It ensures that the person is not carrying out any unethical business practices. A license protects the owner of the business against certain types of liability.

Documents Required for Trade License

Every state has slightly differing Rules & Regulations for the application of license, and as such the list of documents required tends to vary from State to State. However, a general list is given for reference (illustrative).

  1. Application in the prescribed format.
  2. Address Proof And Identity Proof- Individual.
  3. Photograph of Store
  4. Certificate of Incorporation/Partnership Deed.
  5. MOA/AOA
  6. Canceled Cheque and Bank Statement.
  7. Rental Agreement/Lease Agreement (in case the premises are rented/Lease, otherwise, proof of ownership).
  8. Consent letter from the owner of the place of business.
  9. Latest Municipality Property Tax Receipt.
  10. Address proof of directors.
  11. PAN of the entity.
  12. NOC from the land-owning agencies etc.
  13. A certified layout plan of your trade building showing the business, working areas, etc.
  14. Sanction Plan
  15. Occupancy Certificate.
  16. Fire NOC

Documents required for renewal of a trade license:

  1. Address Proof and Identity Proof.
  2. Original License Copy.
  3. Old receipt.
  4. Application for renewal of a license.
  5. Original Trade license certificate copy
  6. Photograph of store