To maintain smooth operations, it is necessary to renew the license annually. Our article explains in detail how to renew a Trade License for Municipality and Gram Panchayat areas online and offline.
How Do Trade Licenses Work?
Trade licenses are official documents granting permission for individuals or companies to conduct business in a specific area or location. A business’s products or services must not pose any health hazards to people. As a result, it signifies an industry that is safe and free from any potential danger. Any company can start operations in a particular line of business with the aid of a trade license. Different types of business licenses exist, each of which corresponds to a particular type of business, such as:
- IT services can only be authorized with a valid OSP license.
- The FSSAI requires licenses for food chain operators.
- The license is for the production and sale of medicines, pharmaceuticals, and other products.
- It is necessary to obtain an Ayush License before trading Ayurvedic products.
A state’s Municipal Corporation sets the standards for this. It is important to keep in mind, however, that a license only permits individuals or companies to trade in items that are listed in the license.
Is It Necessary to Renew Your Business’ Trade License?
All businesses must obtain a trade license from the government. In doing so, the best interests of society were considered. Additionally, this helps to prevent unethical trade. As a result, the government has a greater influence over the trade activities, and the government is given the power to regulate them if necessary.
The validity of a trade license registration, however, is limited to one year.
To maintain an active Trade License, one must renew it before its validity period expires. Your shop or business may suffer if you do not get it done on time.
Various Types of Trade Licenses
Different types of trade licenses exist. Here are a few of them:
- Small or large factories can apply for this industry’s license.
- Licensed trades that pose a threat to other humans are covered by this license. For instance, firecrackers, firewood, barbershops, etc.
- Businesses that deal with food items or other edible products are required to have a food establishment license. A bakery, a restaurant, a canteen, a food stall, and so on.
Criteria for Renewing a Trade License
Getting a trade license renewed in India requires the following criteria:
- It is not possible for the applicant to be a minor. The applicant should be over 18 years old.
- An Indian national must apply.
- It is necessary for him/her to have a clean background, free from any criminal records.
- It must be legal for the business to deal in legal items and products that are permitted for trade by the Government of India. Trades involving illegal products are prohibited.
- At least 30 days before commencing business, the applicant must register his or her business.
Fees for Online Trade Licenses
The associated fees for business licenses vary from state to state because each state’s government entity (Municipalities) issues them. License fees are calculated based on the rules and regulations in each state.
Some states require residents to pay annual business license fees. Meanwhile, in some states, it is based on a percentage of the business’s total revenue. It would cost approximately eight thousand rupees to obtain an Online Trade License.