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Typically 7 to 20 working days

Trade Licence

Municipal permission to carry on your trade at a specific address. Issued by the local body, so the rules, fees and renewal cycle change from one city to the next.

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TIMELINE

7 to 20 working days

ISSUED BY

Municipal corporation or council

TIED TO

The specific premises

RENEWAL

Usually annual

What is included

  • Identification of the correct trade category
  • Preparation and filing of the municipal application
  • Premises and ownership documentation
  • Coordination of any inspection required
  • Trade licence certificate
  • Guidance on display and renewal obligations

Documents you will need

Business documents

  • PAN of the business or proprietor
  • Aadhaar of the proprietor, partners or directors
  • Certificate of Incorporation or partnership deed, where applicable
  • Description of the trade to be carried on

Premises documents

  • Property tax receipt for the premises
  • Rent agreement, if rented
  • No Objection Certificate from the owner
  • Site plan or layout, in some municipalities
  • Fire NOC, for higher risk trades

How the filing runs

Identify the category

Municipal fee and conditions depend on the trade category and often on the floor area. Applying under the wrong category causes rejection or a later demand.

File with the local body

The application is filed with the municipal corporation or council for the ward in which the premises sits.

Inspection

Many municipalities inspect the premises, particularly for food, manufacturing and higher risk trades.

Licence and renewal

The licence is issued for a defined term, must be displayed at the premises, and is renewed before expiry.

It attaches to the address, not the business

A trade licence permits a specific trade at a specific premises. Move to a new address and the licence does not travel with you, even within the same city. Add a materially different activity and the category may need amending. Businesses that relocate and continue trading on the old licence are operating unlicensed, which surfaces at renewal or inspection and can bring a demand for the intervening period along with the penalty.

Common questions

No. Shop and Establishment is a state labour department registration covering employment conditions. A trade licence is municipal permission to carry on the trade at that location. Many businesses need both.

It depends on the municipality and the trade. Food, manufacturing, storage and public facing trades almost always need one. Some purely office based services may not.

Some municipalities permit low impact trades from residential premises, others do not. It is genuinely local, so it needs checking for your ward.

Usually annually, though terms vary. Renewal is generally due before the start of the new financial year in many municipalities.

Penalties, and in some cases sealing of the premises by the municipal authority.

Need a trade licence?

Tell us your city and trade and we will confirm the category and documents.

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