Trade License Registration in Chennai
Trade License (also known as Trade Certificate) is a certificate that allows a business or company to establish a business and begin the trading business from one specific area. With a Trade License, State Government oversees and regulates the operations of the trading company in a specific location. It also aids to regulate and ensure that there is no risk to the general public, other living creatures, or the general health through the activities that are carried out by trading.
Trade License is granted by all the safety guidelines and standards, and pertinent laws to ensure the particular trade business is operating and protect the community within the state. Trading License registration is monitored and issued to the State Government for regulating trade and business in the area.
Companies that aren't adhering to the rules of a trade license could be liable to a severe penalty. This is why owners of companies need to obtain an appropriate trade license from that authorized state authority immediately without delay. Registration for a trade license can be costly and takes a long time. It is worth a look.
Importance of Trade License:
A trade license is a permit to run a business in a specific location, issued by the municipal authority. Trade Licenses are very crucial because of the following aspects:
- Supervises and regulates the business of trading in a specific location or area
- To ensure there isn't any harm to the health of the public from the incorrect method of conducting the business.
- It makes sure that the activities of a business are in line with the regulations, rules, and standards that are set.
- It regulates the business of trading by imposing restrictions on specific commercial activities.
- It regulates trading by imposing limits on specific commercial activities.
- Supervising the duties that the owner of the company has to the business of trading
- The business owner possessing an E license to trade is believed to be proof that there isn't any illegal or unethical trade being conducted.
Types of Trade License in India:
Three categories in the circumstances that a new license to trade is issued:
Industrial License: Industrial licenses apply to any business that is involved in manufacturing or operating on large, medium, or small scales.
Shop License:
The shop license is issued to businesses that are engaged in operating risky and offensive activities such as manufacturers of candles, crackers firewood shops, candle manufacturers, and such.
Food & Shop Establishment License:
Food & Shop Establishment License licenses are issued by the company that is involved in the food industry including restaurants, canteens or hotels, food stalls, and more.
Documents Required to Obtain a Business Trade License:
- Identity Proof like Aadhaar, Passport, Driving Licence, or Voter's ID
- Address Proofs like Aadhaar Card or Ration Card or Driving Licence and more.
- Certificate of Tax Returns
- Receipt of property tax on the business office building
- Lease agreement or rental agreement for office space if it is a rental space
- Affidavit of the INR 20 stamp paper that explains the nature of the trade and the area of business.
- Applicant's passport size Photographs
- Installation license
- No objection Certificate (NOC) obtained from a District Fire Officer Pollution Control Board or Inspector of Factories If the company's activities involve more than nine employees, If any.
- Building permits issued by the company.
- Information about the power source equipment and machinery
- If the business employs more than nine employees A Certificate of Approval from the Inspector of Factories is needed
- A certificate issued by the Director of Deputy Public Health.
- Non-Objection Certificate (NOC) issued by both IRS as well as Fire.
- Consent or authorization from TNPCB