Madhya Pradesh Trade License

Trade license is a document that permits any individual or a company to carry on a trade or business. The government has made trade license compulsory for those seeking to start a business and to regulate various trade activities in the country. The process of acquiring trade license differs from state to state. In this article, we look at the procedure of obtaining Madhya Pradesh trade license in detail.

Aspects of Trade License

Commencement of new business requires the individual or the company to register it with the local government. However, obtaining a trade license is different from business registration. Trade license is a permission to start a business.
The state Government regulates the issuance of trade license through the municipal acts.
The business should comply with the rules and regulations set down by the corporation and safety authorities of the State to get the license.
Trade license does not guarantee any kind of property ownership to the license holder.
The license does not let the holder to carry on any other trade or business other than for the issued purpose.

Purpose of Trade License

The main objective of the government issuing the trade license is to ensure that no one is conducting any unethical business practices or any illegal trade.

It is mandatory for a person or a company to procure a license to avoid heavy penalty as any business without a trade license will be considered illegal.

Eligibility

Any resident of Madhya Pradesh who is of 18 age or above can apply for a trade license.
The applicant should not have any criminal records against them.
The business should have a legal permit.
This trade license should be obtained within 30 daysof the initiation of the business.
Those who seek to set up a small, medium or large-scale manufacturing industry or factory should acquire industrial trade license.
Retail shops or commercial establishments should get shop license.
Establishments like restaurants, canteens, food stall should obtain food establishment license.

Documents Required

The following documents should be submitted for Madhya Pradesh Trade License.

Government ID proof (Aadhar Card / voter ID / PAN Card / Driving license)
Address Proof (Electricity Bill, Telephone Bill)
Partnership Deed (In case of Partnership Firm)
Memorandum of Article (In case of Company)
If the trade is carried out in owned premises – property tax receipt / property registration details
If the trade is carried out in rented premises – photocopy of self-attested rent agreement or a no-objection certificate from the owner.
Passport size photograph of the owner (2 nos).
Original copy of challan must be submitted along with the photocopy of other documents.

Processing Time

Timeline for the issue of Trade License certificate is 30 days from the submission of proper application with essential documents. If the application is rejected, an appeal to the concerned official can be made. The time taken for the first appeal to be resolved is 15 days.

Concerned Authority

The Municipal Commissioner or Additional Commissioner or Deputy Commissioner acts as an administrative head and is authorized to approve a trade licenses certificates at Nagar Nigam and Nagar Palika.

In case of rejection of the certificate, the first appellate offices is either the project officer or the sub-divisional officer of the Urban Local Bodies.

The second appellate officer is the divisional officer of the respective Urban Local Bodies of the establishment.

Fee and Validity

The fee for the issuance of the license is not fixed that revised once in every three years. However, online application of trade license through e-Nagar Palika under the state government of Madhya Pradesh charges a service fee of Rs. 10 for each application submission.

The validity of the license depends upon the approval, sanction, declaration, opinion or satisfaction of the Mayor-in Council or the Commissioner of the Corporation, or of any municipal officer.

Application Procedure

The applicant can apply online for trade license through e-Nagar Palika online portal of Madhya Pradesh.

Step 1: to apply online, visit the official website of e-Nagar Palika. Under the Business tab on the Home page, click ‘Online Form-Trade License’.

Madhya Pradesh Trade License Online Form

Step 2: The online application form for the Madhya Pradesh Trade License appears. Enter the required details that include the following.

General details
Firm name & address details
Self-declaration
Upload documents area

Madhya Pradesh Trade License Application Form

Step 3: On successful submission of the application form, the registration number and the fee challan will be generated (if offline).

Step 4: The submitted application will be verified and approved by the concerned authority and the area inspector will scrutinize the trading place.

Step 5: On successful verification, the application will be approved. The rejected application will go to Deputy Commissioner / Additional Commissioner after getting recommendations from ARO (revenue) for final approval.

Step 6: After final approval, an alert message will be sent on the approval status and for fees payment. Make necessary payment and download the digitally signed certificate from the portal.