A business entity established in a state, corporation or municipality requires a trade license from the concerned state government or corporation or municipality for operation. Rules and regulations vary state to state pertaining to trade license. Hence, to obtain a trade license, the applicant must first understand the jurisdiction under which he/she is operating the business and the applicable Act.
The application for grant or renewal of license will be made to a Commissioner in the Corporation and should be made within 30 days of starting the business. The concerned officer goes through the submitted documents and proofs and makes sure that the business is suitable for the purpose used, there is no possibility of danger or nuisance for any person around and issue the license. It normally takes 7 – 15 days in issuing the license after submission.
- Trade license is known by different names in different states. For instance, in Maharashtra Trade License is known as Gumasta License.
- The jurisdiction and procedure for the application would differ based on the State regulations and the application needs to be made to the concerned State Government or Corporation or Municipality.
- The normal processing time for trade application is 10 – 15 days subject to Government processing time. The certificate can be downloaded online after approval.
- In certain states, issuance of trade license requires in-person verification from the concerned authorities. Most of the states have done away with this formality.
- In most of the states, Trade license is issued with a validity of 1 year and needs to be renewed at the end of each year by paying a renewal fee.