Trade license is the way to regulate specific business from a particular locality. It is regulated to ensure that the citizen is not adversely affected by Health Hazard & Nuisance by the improper carrying of a trade. The trade license is a means to ensure that the manner and locality in which the business is being carried on is according to the relevant rules, standards and safety guidelines. The provision of trade license is laid down by the State government to monitor and regulate the trade within a city. It is issued by the municipal corporation of the place where business is located. A trade license is a permission to carry on a specific trade or business at the premises for which it has been issued. Any unauthorised running of trade is an offence which may result in a substantial penalty and subsequent prosecution. The business owners must apply for trade license if required in particular area without any delay. An application must be made before the commencement of the activity. However, some state governments allow 15-3 months time to seek a trade license. Licence once issued requires periodical renewal on annual basis. Application for renewal must be filed at least 30 days before expiry of licence. The process of Trade license registration is often a time consuming and expensive process.
Businesses Requiring Trade License
All commercial establishment that falls under the following categories must obtain trade license:
An establishment or administrative service in which persons employed or mainly engaged in office work.
A hotel, restaurant, boarding or eating house, a cafe or any other refreshment house.
A theatre, cinema or any other place of public amusement or entertainment.