A trade licence is issued by the municipal corporation or local body permitting a business to operate at a specific premises within its limits, ensuring it follows safety and health norms. Shops, restaurants, factories and many service businesses need one. Applications are usually online, with fees based on business type and area, and renewal is typically annual.
Who needs a trade licence
- Retail shops and restaurants
- Manufacturing and storage units
- Hotels, salons and gyms
- Other trades listed by the municipality
Documents
- ID and address proof
- Property ownership or rent agreement
- Property tax receipt
- NOCs such as fire where required
Process
- Apply on the municipal portal.
- Pay the fee.
- Inspection if required.
- Download the licence.
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Get expert help →Renewal and penalties
Renew before expiry; trading without a licence can attract fines and sealing.
Frequently asked questions
Is trade licence same as Shop Act licence?
No. A trade licence is municipal; Shop and Establishment registration is a state labour law registration.
Do online businesses need a trade licence?
If operating from a premises in municipal limits with trade activity, rules may require it; home offices without trade may be exempt.
Is a health licence different?
Some municipalities issue health or food trade licences for eating establishments separately.
Can a trade licence be transferred?
Transfers on change of ownership are handled as per municipal rules, often requiring a fresh application.
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