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Trade License Registration

Local approval required to carry out specific business activities.

What is a Trade Licence?

A Trade Licence is a permission issued by the local Municipal Corporation / Municipality / Panchayat that allows a business to carry out certain commercial activities at a particular location. A Trade Licence is separate from the Shops & Establishment Registration. It is issued by municipal corporations / municipalities for specific business activities.

It ensures that the proposed business:

  • Is safe for the public
  • Meets health & sanitation standards
  • Complies with zoning and building-use rules
  • Does not create nuisance or environmental hazards

This licence applies to specific trades, not all businesses.

Why is a Trade Licence Needed?

Businesses obtain a Trade Licence to:

  • Legally operate trades that impact public health, safety, or environment
  • Get approval for food, manufacturing, or storage activities
  • Comply with municipal by‑laws
  • Avoid fines and business closure notices
  • Obtain other licences (FSSAI, Fire NOC, Pollution Board certificates, etc.)

For many municipal areas, a Trade Licence is mandatory before starting certain categories of business.

Applicability Trigger: When Is a Trade Licence Required?

A Trade Licence is required when a business is engaged in any of the following activities:

Food‑related trades

  • Restaurants, cafés, bakeries, juice shops
  • Catering units, cloud kitchens
  • Meat/fish shops

Industrial / Commercial Activities

  • Workshops, fabrication units
  • Printing presses
  • Small‑scale manufacturing
  • Repair/service centres (AC, electronics, automobile)

Storage & Warehousing

  • Godowns, cold storage, wholesale distribution
  • Chemical / flammable storage

Health & Public‑Facing Services

  • Clinics, diagnostic labs
  • Spa/salon, fitness centres
  • Coaching centres with large footfall

Other Notified Trades

  • Any activity classified as a dangerous or offensive trade by the municipality

Simple Rule:

If your business affects public health, environment, or safety, your municipality may require a Trade Licence.

Who Can Apply?

  • Proprietorships
  • Partnership firms
  • LLPs
  • Private Limited / OPC
  • Trusts & societies
  • Restaurants, factories, workshops, warehouses
  • Home‑based businesses operating food or manufacturing units (if allowed locally)

Municipal permission is required regardless of business type.

Document Checklist

Exact requirements vary by municipality, but usually include:

Business Premises Documents

  • Rent agreement + owner NOC
  • Property tax receipt
  • Electricity/water bill

Business Identity Proof

  • PAN of entity/owner
  • GST certificate (if applicable)

Owner / Authorised Signatory KYC

  • Aadhaar
  • PAN

Activity‑Specific Documents (If applicable)

  • FSSAI licence (for food businesses)
  • Fire NOC (for large premises / hazardous activity)
  • Pollution NOC (for notified trades)
  • Layout plan of premises

Municipalities may request photographs of the unit or machinery.

How and where to apply?

Trade Licences are applied through the local municipal corporation / municipality.

Since every state has multiple municipal bodies, applications must be made only on the official local portal.

Examples of Municipal Portals (Illustrative Only):

Simple  Flow:

  1. Visit the municipal corporation/municipality website
  2. Select Trade Licence / Trade Certificate service
  3. Enter business & activity details
  4. Upload identity & premises proof
  5. Pay the prescribed fee
  6. Download licence after approval

Each city has its own format and rules.

Cost

Cost varies city to city, based on:

  • Nature of trade
  • Size of premises
  • Risk category (low / medium / high)

Typical municipal range: ₹500 – ₹15,000 per year.

Validity

  • Usually 1 year, renewable annually
  • Some municipalities offer multi‑year licences

Check local rules on validity.

Click Here To Download PDF Guide.