Are you looking to start a new business? Then this is for you.
Everything you need to know about TRADE LICENSE
A trade license is a document/certificate that permits the applicant (person seeking to open a business) to commence a particular trade or business in a particular area/location. However, the license does not allow the holder to any other trade or business than for it is issued. Furthermore, this license does not pass on any kind of property ownership to the holder of the license.
In the last forty years, trade license has been introduced in the country and is being regulated through Municipal Corporation Acts by the State Governments. This helps in ensuring that no one is severally affected by the nuisance and health hazards of any trade or business.
It has been made necessary by the government to carry out any particular business or trade in a particular area and to ensure that no one is carrying out any unethical business practices. This license creates harmony in the society that every business is following relevant rules, guidelines and obeying safety measures. This license was made mandatory to make sure that the government can regulate various trade activities in the country. The core objective of issuing TL is to control the locations by restricting the people from executing certain types of businesses from their home location.
- The Trade license issued by the municipal authority is exclusively for Trade or business.
- Rules and regulations concerning the issuance of a trade license vary from State to State.
- The fee structure for the issuance of the license differs based on the nature of the business.
- A business granted this license will enjoy greater goodwill than an unregistered entity and subsequently attracts more customers and investors.
- This also ensures the ethical business practice is performed by the traders as they have to follow safety measures and guidelines.
- If a person doesn’t apply for the license or before the grant of the license as required under law and commences any trade or business activity then the relevant government (authority) can impose fines and penalty as per their rules and regulation. The failure to comply with pre-requisites of the trade license can also result in the closure of a business.
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