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Punjab Trade License

Punjab Trade License

Punjab Trade License

Trade license is a document issued by the government that allows an individual or a company to carry out a trade or business within a Corporation or Municipal limit. The government has made trade license compulsory for those looking to start a business and to control various trade activities in the country. The process of obtaining trade license varies from state to state. In this article, we look at the procedure of obtaining Punjab trade license in detail.

Aspects of Trade License

  • The state Government regulates the issuance of trade license through the municipal acts.
  • 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 business should comply with the rules and regulations set down by the corporation and safety authorities of the State to get the license.
  • The license does not let the holder to carry on any other trade or business other than for the issued purpose.
  • Trade license does not guarantee any kind of property ownership to the license holder.

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.


1. General Merchant — Rs. 150/-up to 5 person
Rs. 500/- more than 5 Persons
2. All kind of Sale/Storage/ Trading/Processing unit — Rs. 150/-
3. Photography 200/-up to 5 persons
4. Hotel/Restaurant 500/-
5. Videography — Rs. 300/- up to 5 persons
6. Dhaba — Rs. 300/- up to 5 persons
7. Hardware — Rs. 150/-up to 5 persons
8. Stationery — Rs. 150/-up to 5 persons
9. Bookseller — Rs. 150/-up to 5 persons
10. Beauty Parlor — Rs. 200/- Less than 5 Persons
11. Beauty Salon Rs. 500/- More than 5 Persons
12. Cosmetic Shop Rs. 150/- up to
13. Confectionery / Bakery Rs. 150/- up to 5 Persons
14. Saw Mills Rs. 500/-
15. Readymade Garments — Rs. 150/- Less than 5 Persons
16. Barber — Rs. 100/-
17. Cloth Merchant Rs. 150/- up to 5 Persons
18. Printing Press Rs. 500/-
19. Otherwise not specified more than 5 Persons — Rs. 500/-

Documents Required

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

  1. ID proof of the applicant
  2. Registration Certificate
  3. Statement of the capital proposed on the business.
  4. If the applicant is a corporate body;-
    • A copy of the Memorandum of Association and articles of the company
    • Details of any company engaged in the business whether within the State of Gujarat or in any other State
  1. In case of other business entities – registration or agreement
  2. NOC from Fire Department
  3. For commercial building premises – Office Rental agreement, Occupation Certificate
  4. Actual Turnover of last three financial years
  5. An affidavit verifying the information disclosed in the application

Application Procedure for Punjab Trade License

To apply for the Punjab Trade license, the applicant should approach the respective municipal corporation where the factory, industry, workplace, business, or service is intended to be established. The applicant has to submit an application in the prescribed format along with documents prescribed for Punjab Trade license at the Municipal Corporation. Once the application has been submitted, an acknowledgement slip with the application number will be issued from the office. The applicant will be notified and called for inspection of application and documents.

On scrutiny of the application, if the Secretary finds the application and documents to be complete, either approves or objects with suggestions. The respective Municipal corporation office will grant the Gujarat trade license once the secretary approves the request and fee has been paid. On providing the application number, the applicant can obtain the Trade License.

Renewal of Punjab 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.