Trade License in India

Trade License in India is issued with one year of validity by municipal authority and is required to be renewed online every year before the date of its expiry.

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What is Trade License?

Why Trade License is Required?

Eligibility for Trade License

Types of Trade License

Process of Obtaining Trade License

Documents for Trade License

Trade License Renewal

Overview of Private Limited Company Registration

A Private Limited Company is a privately maintained small business existence, which is one of the highly recommended means to start a business in India. The Companies Act 2013 governs private limited company registration in India.

While, minimum 2 shareholders are required to start a private company, while the higher limit of members are 200 as per the Companies Act, 2013. If a private limited company faces financial risk, its shareholders are not subject to sell their personal assets, i.e. they ought to have limited liability.

  • A registered private limited company increases the credibility of your business. A registered private limited company increases the credibility of your business. A registered private limited company increases the credibility of your business.
  • Help owners from personal liability and protects from other risks and losses.
  • Draws more customers
  • Ease in obtaining bank credits
  • Offers limited liability to preserve your company’s assets
  • Greater funds supplement and more attractive stability
  • Enhance the potential to grow big and expand

Starting a private limited company offers many advantages. Some of them are as follows:

Limited Liability
The responsibility of the members of a private limited company is restricted to their share only as the private limited company is a separate legal entity.
Separate Legal entity
A private limited company is a separate legal entity which posses all the rights to sue or to be sued. It acts an artificial person which can buy a property on its own name.
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Trade license is a legally authorize document which gives right to trader to operate business in a particular area. The trade license was introduced in India 40 years ago which is regulated and governed by the state government through Municipal Corporation Acts.
Trade license is used to carry out trade for the Food Establishment business, Industrial business and for locality shop business
The trade license is needed to ensure that no harm or adverse affect to health hazard is done while carrying out the trade in a particular area.
The Government Issue licenses to avoid unhealthy competition in the market. It is the way to control and monitor the business carried out by the traders in the locality.
The trade license can be revoked if the trader has violated the standard guidelines prescribed by the MCD Act. The Municipal Corporation can revoke the license on receiving the complaints of the trader.

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