A place of business within a State, Corporation or Municipality will require a trade license from the concerned State Government or Corporation or Municipality for operating. Rules and regulations pertaining to trade license varies from state to state. Hence, to obtain trade license, the applicant must first understand the jurisdiction under which he/she is operating the business and the applicable Act.
In most states, the application for grant or renewal of license will be made to a Commissioner in the Corporation. The application must be made within 30 days of starting to operate a business. On applying with the required information and documents, the concerned Officer will ensure that the business is suitable for the purpose used, there is no possibility of danger or nuisance for any person around and issue the license. Trade license would normally be issued within a period of 7-15 days on submission of application. Bizcruise can help you obtain trade license for your business. Get in touch with an Bizcruise Advisor to know more about the rules and regulations applicable for your business and begin the process of applying for a trade license.
- Though a One Person Company allows a lone Entrepreneur to operate a corporate entity with limited liability protection, an OPC does have a few limitations. For instance, every One Person Company (OPC) must nominate a nominee Director in the MOA and AOA of the Company – who will become the owner of the OPC in case the sole Director is disabled. Also, a One Person Company must be converted into a Private Limited Company if it crosses an annual turnover of Rs.2 crores and must file audited financial statements with the Ministry of Corporate Affairs at the end of each Financial Year like all types of Companies. Therefore, it is essential for the Entrepreneur to carefully consider the features of a One Person Company before incorporation.
Important Aspects Relating to Trade License
Trade license is known by different names in different parts of the country. For instance, trade license is referred to as Gumasta license in the state of Maharashtra.
Trade license application must be made to the concerned State Government or Corporation or Municipality. The jurisdiction and procedure for application would differ based on the State regulations.
The normal processing time for trade application is 10 – 15 days subject to Government processing time. The certificate can be downloaded online after approval.
In some State, the trade license would be issued only after in-person verification from the concerned authorities. However, many states have also done away with the requirement.
In most states, trade licenses are issued with a validity of 1 year. Trade license can be renewed at the end of each year by paying the renewal fee.