Recommended for every business operator who wants to carry on the trade activities.

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What is Trade License in India?

Trade License may be a allow needed to hold out trade activities or beginning a business in an exceedingly specific municipal space that it’s been issued.

The authorities are chargeable for birthing down the provisions of the trade license. The provisions of the license regulate and monitor many trade activities among a specific town.

Every state has its own municipal body and completely different Act that governs the Trade License. The license ensures that the business adheres to sure standards, rules, and safety pointers.

A trade license is issued by the municipal corporation of the actual state or place wherever the business is settled.

How is Trade License different from Company Registration?

A trade license is entirely different from company registration. On one side, a trade license provides the individual the authorization to conduct a specific type of business.

However, on the opposite facet, company registration provides a business with a legal identity. It’s the method of registering a business below the businesses Act, 2013. moreover, it offers the corporate an acceptable structure.

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Eligibility criteria for getting a Trade License

There are specific tips set by the govt. for getting a trade license in numerous cities and states. a number of the common criteria are as follows:

The applier should have earned a minimum of eighteen years of age;
The individual should not have any criminal records against him;
The business during which the applier goes to have interaction should be lawfully permissible.

Different types of Trade License

Any person or company will apply for 3 forms of trade licenses supported the character of the business he carries out. Those area units as follows:

Shop License: Such a license is crucial for the individuals who want to open look|a store} like barbershop, sale of fuel, dhobi shop, etc.
Industries License: Such license is crucial for little, medium, and enormous scale producing factories.
Food institution License: Anybody who is willing to set-up a food institution like hotels, restaurants, etc. needs this license.

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