Trade License Registration

A trade license is a document or certificate that allows the applicant to commence a particular trade or business in a specific area or location. The holder of the trade license cannot use it for any other work or business.

A business within a state, corporation, or municipality will require trade license registration from the concerned central or state government to commence with any business in a particular area or location. To obtain registration, the applicant must first understand the jurisdiction under which they are operating the business and the applicable Act.

The trade registration application must be made within 30 days of starting to commence a business. Trade license is usually issued within 7-15 days on the submission of the application. The application for grant or renewal of the license will be made to the commissioner in the corporation in the case of most of the states.

Eligibility for a Trade license

  • The applicant must have crossed 18 years.
  • The applicant should not have any criminal record.
  • The type of business must be legally permissible.

Documents required for obtaining Trade license registration

To apply for a trade license, the applicant must make an application and submit the following documents to the concerned municipal authorities.

  • Application in the prescribed form]
  • PAN Card along with the incorporation certificate if the applicant is any firm, LLP, or company.
  • Aadhar is mandatory in the case of an individual applicant.
  • Latest Municipality property tax payment receipt
  • Lease documents or consent letters from the owner of the property.
  • NOC from an immediate neighbor
  • A certified layout plan of your trade building showing the business
  • Katha extracts
  • Katha Certificate
  • Sanction plan
  • Occupancy certificate

Who issues the Trade License?

The trade license is issued by the various departments of the municipal corporations like industries, engineering, health, etc.

The government of India authorizes the licenses in a manner to regulate in cities across the country. The license issuance differs from state to state depending on the local government agencies (Municipals) rules and regulations.

Different categories of trade license

  • Industries license: Small, medium, and large scale manufacturing factories.
  • Shop License: Dangerous and offensive trades like a sale of firewood, cracker manufacturer, candle manufacturer, barber shop, dhobi shop, etc.
  • Food establishment license: Restaurants, hotels, food stalls, canteen, the sale of meat and vegetables, bakeries, etc.

Important aspects related to Trade License

Gumasta License

Trade license is referred to as Gumasta License in the state of Maharashtra. Trade Licenses are known by different names in the other parts of the country.


Trade License registration application must be made to the concerned state government or corporation, or municipality. The procedure for the application would differ based on the state regulations.


In some states, the trade license is issued only in person after the verification from the concerned authorities.

Processing Time

It takes around 10-15 days, subject to government processing time. This certificate can be downloaded online after approval.


Trade licenses are issued with a validity of 1 year in most states. Trade licenses can be renewed at the end of each year by paying the renewal fee.


There are various provisions, rules, and regulations required to be followed by a registered person if he fails to comply with the registration requirements of the trade license and commencing any trade activity before the issuance of this license.

Further, legal action can also be taken against the defaulter.

Check Business Name Availability

Find if business name can be registered with MCA in India

To register a company in India, the first step is to obtain name approval for the business from the Ministry of Corporate Affairs (MCA). This process takes about 24-48 hours. A private limited company name in India must end with the words private limited. One Person Company ends with (OPC) private limited. LLP end with LLP and Section 8 companies can end with words like foundation, association or institution.

A company name proposed to be registered cannot be identical or similar to an existing company name. Also, every company name must include a word that denotes the activity undertaken. For example, in VERVE Financial Services Private Limited - Financial Services denote the activity undertaken. Check Business Name Availability

Online Trademark Search

Enter a brand name to search across all trademark classes

All trademarks are registered in India with the Office of the Controller General of Patents, Designs and Trade Marks. A trademark application has to be filed under a class that denotes the type of goods or services the brand or logo represents. There are 45 trademark classes and each class represent a distinct type of goods or service.

Trademark search can be conducted using the tool above to check if any identical or similar brand or logo is registered or applied for under the same class. If there is an existing application, care must be taken while reapplying to ensure that the application is not rejected by the Trademark Registrar. Trademark Search

Trade License FAQ's

What is a trade license?

Trade license is a document or certificate that allows you to conduct trade or business in a specific area.

When should I apply for my trade license?

Within 30 days of incorporation of your business, you must submit your application of trade license.

How long does it take to receive trade license?

Trade license will be issued within 7-15 days after submission of application.

What kind of businesses require a trade license?

All business require a trade license to function legally in India.

Who issues the trade license?

The trade license is issued by the various departments of the municipal corporations and is authorized by the government.

What are the types of trade licenses?

There are three types of trade licenses:
  • Industries license
  • Shop License
  • Food establishment license

Do I have to renew my trade license?

Yes, trade license validity differs in each state and you have to renew it accordingly.

Proprietorship vs Limited Liability Partnership (LLP) vs Company

Features Proprietorship Partnership LLP Company
Definition Unregistered type of business entity managed by one single person A formal agreement between two or more parties to manage and operate a business A Limited Liability Partnership is a hybrid combination having features similar to a partnership firm and liabilities similar to a company. Registered type of entity with limited liability to the owners and shareholders
  • Sole Ownership
  • Min 2 Partners
  • Max 50 Partners

For One Person Company
  • 1 Director
  • 1 Nominee Director
Registration Time 7-9 working days
Promoter Liability Unlimited Liability Limited Liability
  • LLP Deed
  • Incorporation Certificate
Governance - Under Partnership Act LLP Act, 2008 Under Companies Act,2013
Transferability Non Transferable Transferable if registered under ROF Transferable
Compliance Requirements
  • Income tax filing if turnover is more than Rs.2.5 lakhs
Know More

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Many small businesses pay lakhs in penalty every year to the Government for late filing various statutory returns. Such penalty or late fee paid is not tax deductible and is a drain on profitability. At IndiaFilings, our mission is to provide the most affordable services to our customers and help them avoid all late fee.To achieve our mission - we have built enterprise grade technology to help you proactively know the upcoming compliance and avoid penalty.Checkout our compliance services below, talk to an Advisor and stop paying unwanted late fees.

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Related Business Registrations

In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.

MCA Compliance

Every registered entity has to comply with all the compliance obligations after the completion of each financial year. Majorly, it includes the audit of books of accounts, income tax return filing, and annual forms with the MCA.

Form Company Compliance Due date Penalty
COB Filing Commence of Business Certificate To be filed before 180 days of company Incorporation Rs.50,000 for non-compliance
DIR 3 EKYC Any director with DIN Before 30th September every year Deactivation of the DIN
A late filing fee of Rs.5,000
Disqualification of the Directors
Form ADT 1 Appointment of auditor Within 15 days from the date of appointment of the Auditor Late fees will be applicable, with fees ranging from 2 to 12 times the nominal fee, depending on the number of days of delay.
Form AOC 4 Filing financial statements of the company 30 days from the conclusion of the AGM Late fees will be applicable, with fees ranging from 2 to 12 times the nominal fee, depending on the number of days of delay.
Form MGT 7 Annual Returns of the Company 60 days from the conclusion of the AGM

In addition to the above filings, depending on the type of entity and business activity more compliance filing maybe applicable. Please check with an IndiaFilings Advisor to help you with the compliance for your company.

All Limited Liability Partnerships (LLP) registered in India are required to file statutory returns with the Ministry of Corporate Affairs (MCA) each year. IndiaFilings can help you maintain your LLP Compliance at a very affordable price.

Form LLP Compliance Due date Penalty
DIR 3 KYC For every designated partners of a limited liability partnership (LLP) with DIN Before 30th September every year Deactivation of the DIN
A late filing fee of Rs.5,000
Disqualification of the Partners
Form 11 Annual Returns May 30th every year Late fees will be applicable, with fees ranging from 1 to 50 times the nominal fee, depending on the number of days of delay.
Form 8 Statements of Accounts and Solvency 30th October every year Late fees will be applicable, with fees ranging from 1 to 50 times the nominal fee, depending on the number of days of delay.

Apart from the aforementioned filings, there might be additional compliance filings that could be relevant for LLPs. Please consult with an IndiaFilings Advisor to assist you with the compliance needs of your LLP.

Entity Form Due date
Private Limited Company Annual Return (Form MGT-7) 60 days from the conclusion of the AGM or 28th November 2023 (Which Ever is Earlier)
Financial Statements (Form AOC-4) 29th October 2023
DIR-3 KYC 30th September 2023
Form DPT-3 30th June 2023
Form ADT-1 15th October 2023
ITR 6 (Non audit case) 31st July 2023
ITR 6 (Audit Cases) 31st October 2023
GSTR 9 31st Dec 2023
Limited Liability Partnership ITR 5 (Non audit case) 31st July 2023
ITR Form 5 (Audit case) 30th September 2023
Annual return - Form 11 30 May 2023
Financial Statements - Form 8 30 October 2023

Note : Get in touch with our experts to efficiently handle your compliance filings, whether you are an LLP, a company, partnership firm or a proprietorship. Contact us to ensure your compliance is filed before the due date.

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Customer Reviews For Trade License

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Trade License
Verified Customer
11 August 2023
How can we improve?

Good work Nasir Ahmed sir . And also so much thanks for Mr Deepak sir


Trade License
Verified Customer
27 February 2023
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Thank you.


Trade License
Verified Customer
28 October 2022
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Great ramraj


Trade License
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09 July 2022
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Great service


Trade License
Verified Customer
13 March 2020
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nice service, but too long waiting time, please over come from this


Trade License
Verified Customer
04 October 2018
How can we improve?

Return back the amount

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