Who needs a Trade License & How to Renew It

If you are considering a new business, it is important that you have a perfect start. For that purpose one of the most important pre-requisite is to make sure that all the laws are followed properly. And laws mandate that certain permissions and license are taken before hand depending upon the nature of business setup.

Trade license is basically a permission letter given by the authorities after careful consideration of the applicants. The officers assessing the application make sure that all the safety guidelines issued by different departments are followed along with the relevant laws.

When to apply

When starting a new business, the person is required to make an application for trade license at least three months before starting any business activity.

Where to Apply

Trade license registration application is to be submitted with the municipal department of the area. Trade License rules differ from state to state as they are regulated by state governments. And power to issue the license and renewals are delegated to the municipalities for their respective jurisdiction.

The applicant is required to submit duly filled application in Form 353 or 354, depending upon the case along with the following documents:

-        Aadhaar Card, it is a mandatory requirement.

-        Incorporation document along with the pan card of the organization in case applicant is not individual

-        ITR receipts of the last year

-        Whatever permission or OCs required from different sections.

-        Address proof of registered office

-        If rented, then rent agreement should also be enclosed

The application fee varies depending upon the state laws and type of business.

Renewal of Trade License

Trade License issued by the authorities is valid for a period of one year only. It is required to be renewed every year.

Following documents are required to be submitted along with the renewal application:

1.     Copy of Original License.

2.     Copy of challans paid in the previous year.

3.     Latest tax payment receipt

These applications are required to submit the application for trade license renewal at least one month before the expiry of the said period of one year. If there is any delay in the renewal application submission, the applicant will attract a late fee of 50% of the