If you want to start your own business but don’t know where to start or what approvals you’ll need, the first thing you should consider is whether you want to sell goods or services, and secondly, where you’ll do business. After you’ve clarified the above points, the next item on your to-do list should be obtaining a trade license.

The government controls any specific business in a specific locality through trade licenses. The Municipal Corporation of the place grants all the permission to carry on a specific trade in a specific locality through trade licenses. The trade license guarantees conformity to applicable laws, regulations, and safety guidelines existing in the land.

For more information, please contact us on or call us Mb. No. 85100 58386 or 9310 717274.

A trade license is a permit that allows a resident to conduct business or Trade in a specific location. It is provided in collaboration with other specialist departments such as fire, health, engineering, and real estate, among others, to ensure that people are not exposed to health risks and nuisances as a result of illegal trade practices. In India’s financial capital, the License Department of the Municipal Corporation of Greater Mumbai has administrative authority over trade licenses. The process for obtaining a trade license in Mumbai is discussed in this article.


The purpose of a trade license in 2021, which is governed by state governments, is to certify that the business in question is being performed in compliance with the applicable laws, regulations, and safety guidelines, thus ensuring that citizens are not exposed to health risks or nuisance caused by improper and illegal Trade. Any company or Trade that is pursued without obtaining the same may be subject to severe penalties and/or prosecution.

Trade licenses have been implemented in the country over the last fifty years, and they are governed by state governments by municipal corporation acts. This ensures that no one is harmed in several ways as a result of a trade or business’s nuisance and health threat.

The government made it mandatory to conduct any particular company or Trade in a specific region and to ensure that no one is engaging in unethical business practices. This license promotes societal peace by ensuring that all businesses observe applicable laws, guidelines, and safety precautions.

This license was made mandatory so that the government could control the country’s various trade activities. The main goal of issuing this is to protect the market climate and locality environment by preventing people from conducting certain types of businesses from their home location.


A trade license is required for any trader operating a general trading activity on the outskirts of any municipal corporation. The type of trade license required varies by state and is determined by the nature of the business being conducted.


It is provided by the municipal corporation’s licensing department in various departments such as industries, engineering, and health. The license is approved by the Indian government in order to regulate cities across the country. It also grants permission to carry on any business or exchange where it is located via letters or documents/certificates.

The license is issued differently in each state, depending on the rules and regulations of local government agencies (Municipals).


  1. Small, medium and large-scale manufacturing factories need a license.
  2. Shop license: Dangerous and offensive trades such as firewood sales, cracker and candle manufacturing, barber and dhobi shops, and so on.
  3. Restaurants, hotels, food stalls, canteens, meat and vegetable sales, bakeries, and other food establishments require a license.
  4. A license issued for Trade involving dangerous activities such as firewood, charcoal, etc.,


  1. The Age of the applicant must have crossed 18 years
  2. The applicant shall not have any criminal records
  3. Business must be legally permissible.


Applicants for a trade license must have the following documents:

  1. A rent receipt, society maintenance receipt, recorded purchase agreement, leave license agreement, or indemnity bond may all be used as proof of ownership of the company (on a stamp paper of Rs. 500). The paper must be backed up with valid proofs such as utility bills, phone bills, and so on.
  2. Proof of authenticity of premises.
  3. Proof of fire safety precautions. It may be in the form of a NOC from the CFO (other than a codified requirement), or from the Fire Department (Codified), in compliance with Appendix A and B. Both of these documents (or any combination of them) should be accompanied by an undertaking from the party attesting to their compliance with the specified requirements.
  4. Bombay Shops and Establishment; License u/s 394 of the Mumbai Corporation Act, 1888; or a permit u/s 90 of the Mumbai Corporation Act, 1888 are examples of other licenses.
  5. The Commissioner of Police has issued a No Objection Certificate (NOC).
  6. A list of ancillary items.
  7. The establishment’s PAN card (for corporations, limited liability partnerships, or firms).
  8. Canceled Cheque.
  9. The establishment’s bank statement.
  10. Certificate of Incorporation (Certificate of Incorporation).
  11. Association Memorandum.
  12. Articles of Incorporation
  13. Partnership Deed (for partnership companies and limited liability partnerships).
  14. Photograph of the applicant in color.
  15. The applicant’s Pan Card.
  16. Apart from proof of identity and address, the entity’s Directors and Partners must have proof of identity.
  17. Photograph of the individual from the front (in a way that depicts the goods traded in the premises).


The applicant for a trade license must go to the Citizen Facilitation Centre (CFC) closest to the proposed business location and apply for the completed application form, which can be obtained at the same location. The requisite documentation and fee must be submitted with the application.


In metro cities, the application for a trade license usually takes around 7 to 10 days to process. However, it takes much longer in other small towns and rural areas.


After Citizen Facilitation Centre (CFC) receives the submission, it is forwarded to the License Department. The Department Head of the License Department at the concerned Ward then assigns and processes the application. The Certificate is given to the applicant after the site has been inspected and the application has been approved by the appropriate authorities.

The Certificate is normally given within a week of filing it, but there may be a pause if the application is incomplete or contains errors.


  • It allows the state government to keep track of the companies that are operating within its borders.
  • Assists in keeping track of certain businesses’ enforcement and regulation.
  • Ensures that there is no illicit trade within the region.
  • People are protected from annoyances and health risks.
  • Unwanted and illegal market practices are eliminated.
  • Establishes a norm for starting a business, which promotes social harmony.
  • Ensures that all companies operating in the state adhere to such laws and regulations.
  • Assists the government in regulating intra-country Trade.
  • GROWTH– It aids in the firm’s reputation and attracting clients and investors. If you work as a licensed company, you might be eligible to enter or participate in groups that you would not be able to join or participate in if you operated under your own name. If your company 0does not have a license, organizations like the Better Business Bureau, investment associations, and other business-oriented organizations will not allow you to join.
  • LEGAL REASONS– A trade license is required in order for a company to be considered a legal entity. Furthermore, the company must adhere to the laws and regulations set out by the municipal authority in which it is situated.
  • MEASURE OF COMPETENCE– A license is a measure of competence that allows a company to operate in a commercial space without fear of being shut down. This also demonstrates the company’s trust and competence.

For more information, please contact us on or call us Mb. No. 85100 58386 or 9310 717274.


  • The Licensing Agency, which is under the authority of the municipal corporation, issues trade licenses.
  • Technology, fitness, and even markets are all under the licensing department’s umbrella.
  • Such licenses are issued by the government in order to control trade and commerce within the country.
  • Although the exact procedure for renewing a license varies by state, the basic procedure is the same all over India.
  • The entire procedure usually takes between 7 and 10 days to complete. If it takes longer than two weeks, check with the Municipality to see if there are any problems with your submission.
  • The majority of license renewals occur between January 1 and March 31.
  • The period of a trade license is one year. Following that, they must renew in order for the applicant’s company to proceed.
  • A license renewal application must be submitted within 30 days of the expiration of the previous license.
  • If the procedure takes longer than anticipated, the applicant will be fined according to the Municipality’s laws.
  • To apply for the license, the applicant must go to the official website of the State government.
  • Go to the Trade License tab on the homepage and fill out the document.
  • Upload the supporting documentation after you’ve completed the application.
  • Officials from the state will then validate the submission, review the records, and determine whether to accept or deny it.
  • Using the application number, you can check the status of your application on the official State website.

The following are the documents that must be submitted in order to renew your license:

  1. A copy of the trade license in its original form;
  2. Challans from the previous year;
  3. A current receipt for property taxes collected.


  • The municipal authority issues a Trade license only to Trade or corporation.
  • The rules as well as regulations governing the issuance of the license differ from one state to the next.
  • The fee structure for obtaining a license often varies depending on the type of company.
  • A company with this license will have more goodwill than those of unregistered firms, which attracts more buyers as well as investors as a result.
  • This also ensures that traders follow fair business practices, and they must adhere to safety standards and guidelines.
  • If a person does not apply for a license or begins a trade or business practice before the license is granted as necessary by law, the applicable government may impose fines as well as penalties as per rules and regulations. Failure to meet the required requirements of a trade license will result in the closure of a company.


The registered proprietor is expected to obey a number of other provisions, guidelines, and regulations as well. The person in default will be liable to pay the prescribed penalty if he or she fails to comply with the registration requirements of a trade license and starts doing business before the license is issued. Furthermore, civil action against the defaulter may be taken.


In the event that a business owner conducts his or her business without a valid license, he or she may be subject to a fine or penalty. The fine is levied in accordance with the Municipal Corporation’s rules and regulations in that specific region. The amount of the fine is often determined by the type of business being conducted. If a person fails to renew his license, he or she will be charged a fine equal to half of the license fee.


The Municipal Corporation authority has the authority to close down a business if an individual is found without a license. Unfortunately, delaying the application for a trade license can result in such a loss, which is the most serious loss a company can suffer.


Customers can bring a case against you if they are unhappy with the service or product you provide without a trade license. Doing business without a license is a type of fraud in and of itself. Furthermore, if the plaintiff wins the case, there is a risk that the owner will be held liable for a large sum of money.


If an individual violates the license’s rules and regulations or creates a disturbance in the community, the authority might be able to revoke the license based on a simple complaint.


A trade license is a measure taken by the Indian government to protect the general public from health risks and nuisances that a trader or business may cause. If the authority finds a breach of the rules and regulations, fines and penalties may be levied. We will assist you in the filing of trade licenses, and you can also contact us for the renewal of your license.

For more information, please contact us on or call us Mb. No. 85100 58386 or 9310 717274.