Trade License Registration

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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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 For every person with DIN Before 30th September every year Rs.5000 penalty if the DIN is deactivated
Form ADT 1 Appointment of auditor Within 30 days of Company incorporation Rs.300 per month
Form AOC 4 Filing financial statements of the company 30 days from the conclusion of the AGM Rs.100 per day
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. LLPs having a sales turnover of over Rs.40 lakhs or capital of over Rs.25 lakhs will also be required to complete a statutory audit. IndiaFilings can help you maintain your LLP Compliance at a very affordable price.

Form LLP Compliance Due date Penalty
DIR 3 KYC For every person with DIN Before 30th September every year Rs.5000 penalty if the DIN is deactivated
Form 11 Annual Returns 30th May Rs.100 Per day
Form 8 Statements of Accounts and Solvency 30th October
Entity Form Due date
Private Limited Company ROC Filings 15th February 2022
GSTR 9 20th February 2022
Limited Liability Partnership ITR 5
(Non audit case)
15th February 2022
Form 11 31st August 2021
Form 8 30th October 2021

Note : Irrespective of the Turnover Advance Tax payment is to be done before 31st March 2022.

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Customer Reviews For Trade License

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Trade License Registration in State

Trade License Registration in City

Last updated: Apr 20, 2023


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