Trade License

A Trade License is a certificate/document that permits an applicant to initiate a particular business or trade in a specific location/area. The applicant must have attained 18 years of age and his/her venture must be legally permissible.

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Trade License

A Trade License is nothing but a legal certificate/document issued by an authorised body (local municipality, in most cases) of the State Government. It authorises the applicant (a person or party) to start business operations in a specific location or area. The enterprise that obtains the license must adhere to the laid down rules and regulations of the authority. The trade license also affirms that the business is not practising any unethical methods that may potentially harm people living in the defined locality/area.

The application should be filed with the designated commissioner of the authority at least 30 days before starting the business. The applicant/enterprise should submit the mandatory documents during this time period.

Benefits of a Trade License

Legal Entity
Digital signatures ensure a smoother workflow in an organization by limiting the time and cost spent on signing documents and contracts. Documents can be signed by the required persons in a click of a button.
Enhanced security
Added security features in DSC prevents unauthorised use of your document and data. No one can fake your signature, tamper the data or alter your document.
Manges Rules & Regulations
According to the Information Technology Act, 2000, a DSC is accepted evidence in any court of law similar to the acceptance of any signed document.
A Measure of Competence
Apart from government bodies like GST, MCA, Income Tax, etc., a DSC is being accepted in all the countries across the world as it offers greater security.

Documents Required to Apply for a Trade License

When applying for a trade license, one needs the following documents for verification;

  • Form 353 duly filled
  • A letter of consent from the owner or neighbor of business property.
  • The city survey map of the business property.
  • Tax receipts
  • A blueprint of the premises, in case, if the business deals with explosives, timber, and dangerous goods.
  • Other documents that the Municipal Ward Officer may inquire, at the time of registration.
What are the Documents required to renew a Trade License?

In India, Trade License renewals take place between January 1 and March 1 of every year. While applying, a person should present the following documents for verification;

  • The original trade license
  • All tax receipts, showing up to date payments
  • Past payment challans

Procedure For Registering Trade Registration

Form 353:

Once the type of trade license is finalized, Form 353 is duly filled with all the required details. All the above-mentioned documents are submitted to the Municipal Ward Office.


After the application is filed, and if more information is required, authorities may demand additional details. If all the details are found to be satisfactory, the trade license is issued. The validity of the trade license is one year and it takes about 2-3 weeks to procure one, which is dispatched through a courier service.

Non Compliance:

Trade License is a mandatory requirement for every business. Hence, if any business owner fails to get one before starting a business, he or she is liable to pay a fine or may face legal repercussions.

FAQs on Trade License

The whole procedure of getting a Trade License should not take more than 15 days. At Vakilsearch, we will help you get your trade license within a span of 10 days, from the time you apply. Yes, the government has made it a mandatory requirement to renew this license every year. Failing to do so, can attract a penalty or a fine.

Yes, the government has made it a mandatory requirement to renew this license every year. Failing to do so, can attract a penalty or a fine.

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