Trade License - Delhi
Meaning of Trade License?
A trade license is a document or a certificate that gives permission to the applicant (i.e. the person seeking to open a business) to commence a particular trade in a particular area. However, the license does not allow the holder to any other trade than for it is issued. Also, a trade license does not pass on any kind of property ownership to the holder of the license.
According to the Delhi Shops & Establishment Act,1954
Delhi shops and establishment act, 1954 issue following conditions on basis of which the Delhi trade license is issued. There is compulsory registration of shops or established under this act within 30 days of commencement of business.
Shops and Establishments Act regulates the following aspects of doing business in India:
Why Trade License is required?
The government has made it necessary for one to obtain a trade license to ensure that the person is not carrying out unethical business practices and is following the relevant rules, safety measures, and guidelines. A licensed business protects its owners against certain types of liability. If damage or injury occurs in the business actions or doings, the personal finances would not be at stake in any settlement. The various types of trade licenses offer different levels of protection.
Which business is required Trade License
All commercial establishment that falls under the following categories must obtain trade license:
Who Issue’s Trade license?
Trade License is issued by the licensing department of the municipal corporation in various departments like industries, engineering, health, etc. In Delhi, it is issued by Municipal Corporation of Delhi (MCD).
Different Types or Categories of Trade Licenses
Generally, there are 4 types of trade license which are as follows-
Eligibility Criteria to apply for Trade License
Basic requirements that an applicant must possess to apply trade license are as follows-
Documents required for getting New Trade license:
For obtaining Delhi trade license these are the important document furnished by the applicant at the time of submitting the application for trade license-
Time Period of Processing of Documents
Generally, it takes 7-10 days-time to process the application of Trade licenses in metro cities. However, in other small cities or rural areas, it can take a longer period of time.
Do we require to Renewal Trade License every year?
Yes, trade licenses need to be renewed every year or when the validity of a trade license expires. Usually, trade licenses in India are renewed between 1st January to 31st March every year. Usually, the validity of the trade license issued by the municipal authority is for a period of one year and is required to be renewed every year.
The application for renewal of the license is to be made within thirty days from the date of its expiry. In case the renewal process is delayed, then it may attract fine depending upon the rules and regulations of the issuing authority.
Following are the documents that need to be submitted for renewal of the license–
Documents required for getting Duplicate Trade license
Fees for Application of Trade License/Renewal of Trade License:
Category of the localities(in which trade Premises is existing) | Up to 10 Square Meter | Between 10 to 20 Square Meter | Above 20 Square Meters | The fees/charges will not exceed in a year in respect of the single license |
A | 3450 | 8625 | 144 | 57,500 |
B | 3450 | 8625 | 144 | 57,500 |
C | 2300 | 5750 | 115 | 46,000 |
D | 2300 | 5750 | 115 | 46,000 |
E | 1150 | 2875 | 86 | 34,500 |
F | 1150 | 2875 | 86 | 34,500 |
G | 1150 | 2875 | 86 | 34,500 |
H | 1150 | 2875 | 86 | 34,500 |
Procedure for Application of Trade License:
After that acknowledgment receipt is generated.
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