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Puducherry Trade License

Puducherry Trade License

Puducherry Trade License

Trade license is a permission granted by the Municipal Corporation that allows a particular trade to be carried out in a particular location. Any business that manufactures, store goods/commodities or engage in a service must have a trade license. The Shop and establishment Act controls the conduct of business like working hours, benefits to employees etc. The process to obtain a trade license differs from state to state. In this article, we look at the procedure of obtaining Puducherry trade license in detail.

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 and to ascertain that the business adheres to the rules and regulations laid down by the law as well as is follows the safety guidelines. Moreover, it is mandatory for a person or a company to obtain a license to avoid heavy penalty as any business without a trade license will be considered illegal.

Conditions for Granting Trade License

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

Documents Required for Puducherry Trade License

The documents to be attached along with the application form are provided below.

  • Identity Proof – Ration Card, Aadhar Card
  • Proof of address of the Directors or the partners – PAN Card
  • Registration certificate of VAT
  • Memorandum of articles for the Pvt. Ltd. Firm
  • Partnership deed of Partnership firm
  • Rental /sale deed
  • NOC from Police, Fire, Revenue, PWD, TNEI, Public Health (if applicable)


The license expires at the end of one year. For special reasons of the Commissioner, the license may expire at an earlier date.

Concerned Authority

The Municipal Commissioner or Additional Commissioner or Deputy Commissioner acts as an administrative head and is authorized to approve a trade license certificates.

In case of rejection of the certificate, the first appellate officer 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.


The fee for Puducherry Trade License is based on the area of the premise and the type of trade involved. 

Sl. no. Built-up area (in sq. ft.) Rate Per Annum  (Rs)
1 Up to 100 300
2 101 to 500 500
3 501 to 1000 1,500
4 Above 1000 2,500

Note: The license for any premises that deal with more than one item of trade, the license fee should be paid only for one item that has the highest license fee. But the license should be obtained for all items dealt in that premises.

Renewal of Puducherry Trade License

The application for the renewal of trade license should be made at least 30 days before the end of every financial year and not more that ninety days before the end of every financial year. The renewal fee for the license is same as the fee for the original license. The owner or the occupier of the license should pay the fees at the time of application for the renewal.

Application for Puducherry Trade License

The application form for trade license can be applied online by visiting the official website of Pondicherry Municipality Corporation.

Pondicherry Trade License
Pondicherry Trade License

 Suspension of License

The commissioner has the authority to suspend the license for the following reasons.

  • If the license is obtained fraudulently
  • If the license is used for any purpose other than the one the license is obtained
  • If the trader breaks any conditions in the license
  • If the commissioner considers that, the premise cannot be used for the mentioned purpose, provided the reason should be recorded.


Under the Pondicherry Municipalities Act, 1973 a fine of Rs.200/- and a daily fine of Rs. 60 /- will be levied if a place is used without license or for any purpose not specified in the license. Failing to renew the license on time will attract a penalty of 25% of the fees.