What is Trade License?

It is a license or permission which is issued by the municipal corporation granting permission to carry on a particular trade on a particular address. If anybody wants to start a business of his/her own and have no idea to establish the business and what approval requirements, revert back to GSB Taxation. First, you have to look whether you want to deal in goods or services and then you have to detect your business place. After the clarification of mentioned points, your to-do list will receive a trade license. It (Trade License) ensures adherence to relevant rules, standard and safety strategies that are usual in the land.

A trade license is a document, certificate or permit which allow individuals or companies to conduct businesses or carryout operations in the territory which comes under the Indian National Government. It is a certificate which allows the holder to conduct business in the field specified and on the premises on which the jurisdiction of the Indian government extends.

Trade licenses are important for starting any business. There is multiple amount of trade licenses present and issued nowadays. They help to get your business registered and give authenticity to it. Because registration of business increases goodwill of the business. One of the most important things for the business is to build its reputation and brand name in the market.

This can be done by getting a trade license for the market. This helps to gain the market power and capture the market. Consumers today respond to brand and other symbols. They get to know a product through its brand name and not through the name of the company. Hence, the company must focus on getting a trade license because it will help them to build a brand a name for their products. Thus, this will help to capture the market power and will help to develop the brand name and a targeted consumer base for the company, firm or the organization.

This trade license should not be confused with the Licensing Raj that existed in India. Trade licensing refers to the registration of businesses, it does not involve any tight scrutiny, hard rules and regulations to comply with. We see that even though the terms are similar, consequently they mean completely different things. Even though, the term sounds similar, they have different characteristics, attributes and what not. The trade license was introduced to get the businesses registered so that the government has the proper database of all the businesses which are up and running. Moreover, a proper database is required to get have the proper taxation being implemented in the economy. Hence, we see that apart from benefitting the consumers and sellers, it also benefits the Indian National government too in various aspects.

When Trade License is applicable?

All businessmen are planning to start their business operation will be required to get the trade license within 15 days of the beginning of any actions. The actions consist of producer, give-and-take or even storage of any goods. In some states, it is compulsory to apply for the trade license within 3 months preceding to the commencement any business actions.

Controller of Trade License

Usually, The Trade license is controlled in the state by the state governments with the help of municipal corporations of the locality. In some states, it is compulsory whereas it is optional in other states. The amount of trade license is arranged various from one state to another state. The collection of an amount is very different for a trade license. In some cities it is charged as the yearly fees, it is charged on the basis of measurement of business turnover. Some state has released assured departments from receiving a trade license.

Minimum Supplies for getting a trade license

In different states and cities, the government has prescribed certain lowest supplies for getting trade license. Some conditions are as below:

Any individual applying for trade license must be atleast 18 yrs. of age.
The actions in which the bussiness is going to contract shall be authorized.
The applicant must be clean from any criminal background.
Type of Trade Licenses
Type A: - Type A licenses are delivered for the bussiness events interrelated to usable items and eating hubs.
Type B: - Type B licenses are delivered for trades which makes use of locomotive supremacy. Like as a industries, flour mills, workshop etc.
Type C: -This license is issued for dangerous actions such as firewood, charcoal etc.

Minimum Supplies for getting a trade license

The trade license regeneration is done from 1st January to 31st March of every year. It is not a one-time license and is regeneration on journal basis. The requirement of payment of yearly fees for the steadiness of the registration is also compulsory in some states. A charge of 50% of the registration amount is imposed in case of any interruption procedure.
For the regeneration of trade license following documents are required:
Tax payment receipt.
Copy of the original registration.
Challan of the amount paid of the previous year.