Trade License Process in India

Trade licence is mandatory for every business that carries out trade and business in India. The process involves filing an application with municipal authority online through 3 simple steps that take 3-4 business days.

The document provided by the municipality provides permission to the company and businessman to carry on trade or businesses. The application for trade licence shall be made prior to 30 days of commencing business.

Who Can Apply for Trade License

The applicant must ensure that he completes the three major prerequisites:

  • Any person below the age of 18.
  • Should not have any criminal record.
  • The business proposed to be carried out must be legal

Procedure for Trade License Application

The procedure for obtaining and maintaining trade license vary for each state. Following is the general process which can be completed with few additional formalities:

  • For filing the trade license, the applicant needs to submit correct documents along with application Form 353 along with all the relevant documents with the municipal authority.
  • If the municipal authority requires more document, they may provide notification to the applicant on his registered mobile number or email id.
  • Once the officer is satisfied with the list of documents and the proposed business, the applicant will receive a grant of trade license.
NOTE: The business owner at all times will have to display the registered license on the premises.

Validity of Trade License

The trade license issued by the municipal authorities is valid for a period of 1 year and hence need to be renewed annually.

Processing Time of the Application

The application for trade license registration takes up to 3-4 days without any resubmission of the documents. If the applicant receives resubmission, it may take up to 7-10 days, and in case the application is made in rural or suburban areas the application may take more time.

In case of Non- Compliance

It is mandatory for businesses and traders to obtain trade license prior to beginning with the business or else they will be levied a substantial penalty or in some instances can also be penalised. The Individual or applicant needs to comply with all the rules and regulation that are issued by the municipal authority of that area.


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