Trade license is an important and compulsory registration, required for conducting a business. The State Government is authorized with the task of issuing trade licenses, granting permission to businesses to carry out their trade. It is a document that ensures the business is carried out in accordance with the relevant rules, safety regulations and standard guidelines. Trade license ensures the business is not using unethical methods or any hazardous materials which can cause health problems to others living in the locality.
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The main objective of the trade license is to control businesses thriving in an area. Trade license is a way to regulate the business activities and check that they do not cause any nuisance or health hazard in the area or locality.
Obtaining a trade license is necessary, as it proves that your business is being carried out under Government vigilance. The trade license ensures people and authorities, that your business is functioning by following the proper rules, regulations and safety measures specified by the government.
In India, the government has authorized the licensing department of the Municipal Corporation, to issue the trade license for departments like industries, health and so on. While some states have made it mandatory to obtain a trade license, in other states it’s optional. The license fee differs across states. Therefore, the issuance of the license varies from state to state and depends mainly on the municipal rules and regulations.
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Applying for a trade license is quite an easy process. To apply for trade license in Karnataka, follow the steps given below:
Listed below are the various categories of trade license issued by the government:
Listed below are the documents you must submit to the municipal corporation to obtain a trade license:
The time taken to process the trade license in a metropolitan city is lesser than rural areas. Generally, in metropolitan cities, the application gets processed within 7 to 10 days.
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The trade license issued remains valid for only a year. The license must be renewed on an annual basis by applying for application renewal. The application for renewal of trade license must be submitted within 30 days from the date of expiry. In case of any delay in the renewal process, there are chances of incurring a late fee which is 50% of the license fee. There are some documents which must be submitted for renewing the trade license. They are:
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