Benefits of Trade License:

• The business will be considered as illegal if you are without a trade license and that may lead to penalty depends on the nature of the business. This ensures that the person is not carrying any business activity which is unethical and follows the rules and regulations set by the local municipal corporation.
• The municipal authority regulates the business activity from a particular area. They can set a constraint over a commercial activity from running in an area to ensure the adherence of standards of food and safety guidelines.
• Once a business got the permission to perform its operation in an area, then no municipal authority has the right to shut down the activity without proper notice and time for adherence.

Documents Required for Trade License:

• Registration certificate from the authority.
• In case of company, it has to produce the MoA, AoA and certificate of incorporation of the company.
• Tax receipts
• Identity and address proof of the applicant.
• Rental agreement if the premise is on lease and ownership document if it is owned by the person.

Penalty for non-compliance:

• The license owner who commits a breach of the license will be liable for the penalty as prescribed by the Municipal officers.
• If the applicant doesn’t renew his license within the time duration mentioned, he should pay 50% of the fee as a penalty.
• If the activity of a business is hazardous for the surrounding, the trade license of the business can be cancelled.

Trade License Renewal:

The validity of the trade license has been issued by the municipal authority for a period of 1 year and it has to be renewed every year. The renewal application has to be made within 30 days from the date of expiry. If the renewal process got delayed, then the fine amount has to be paid as per the rules and regulations of the issuing authority.