Trade License

Get a Trade License only at 2,360 Rs. (+ Govt. Fees Extra)

A trade license is a crucial certificate that permits a company to conduct its business or trade within specific municipal limits for which it is issued. In Delhi, the Municipal Corporation of Delhi (MCD) is responsible for issuing trade licenses to traders and establishments and overseeing and regulating various trade activities at the city level.

Under the Delhi Shops and Establishment Act, 1954

The Delhi Shops and Establishment Act, of 1954, imposes certain conditions for the issuance of a Delhi trade license. It mandates the registration of shops or establishments under this act within 30 days of commencing business. The Act regulates various aspects of doing business in India, including:

Working hours.
Provisions related to rest intervals, spread over, opening and closing hours, closed days, national and religious holidays, and overtime work.
Regulations related to children, young persons, and women.
Rules and regulations regarding paid leaves.
Rules and regulations regarding employment and termination of service.
Employee and employer obligations related to work and each other.
Obligations related to the maintenance of records and registers.
Precautions against accidents or fire, among others.
Responsibilities of the shop or establishment toward social welfare.
Rules and regulations concerning the display of notices.

Businesses That Require Trade Licenses

Trade licenses are mandatory for various commercial businesses falling under these categories:

Restaurants, hotels, eating houses, cafes, or other refreshment establishments.
Cinemas, theaters, or places of public entertainment.
Establishments or administrative services with employed individuals.

Why Are Trade Licenses Required?

Trade licenses are necessary to ensure that businesses do not engage in unethical practices and adhere to relevant rules, regulations, safety measures, and government guidelines. They also provide protection to business owners against certain liabilities. Different types of business licenses offer varying levels of protection.

Required Documents for Obtaining a Trade License

To obtain a Delhi trade license, applicants must submit essential documents:

Address proof and identity proof of the individual.
Certificate of incorporation, Articles of Association (AOA), and Memorandum of Association (MOA) of the company.
Affidavit.
Canceled cheque and bank statement.
Legal occupancy document proof of the establishment or allotment letter from the government agency.
Document proof for the establishment of trade.
Lease deed of the constitution.
Documentary proof for the absence of unauthorized construction.
No objection certificate from the land-owning agency.

Documents Required for Trade License Renewal

For renewing a trade license, the following documents are needed:

Address proof and identity proof of the individual.
Original license copy.
Old G-8 receipt.
Application for the license renewal.

Documents Required for Duplicate Trade License

To obtain a duplicate trade license, the following documents are necessary:

First information report (FIR).
Indemnity bond in the prescribed format.

Eligibility for Trade License Registration in Delhi

The applicant should not have any criminal record.
The type of business must be legally permissible.
The applicant must be at least 18 years old.

Issuing Authority for Trade License Registration in Delhi

Trade license registration in Delhi is issued by various departments of the municipal corporation, such as industries, engineering, health, etc. The issuance process may vary from state to state and is dependent on local government agencies. Non-compliance with trade license registration requirements can lead to legal action, and it is essential to obtain the license before commencing trade activities.