Trade license is a permission granted by the municipal corporation of the specific state to carry on a particular trade or business at a particular premises or to store the articles to be used for a trade or business at a premises. Trade License is regulated by the Municipal Corporation Act for every state which varies from state to state. This compliance has been established by the Government to regulate the trade to ensure that the citizens are not affected by the hazardous effect of trade activities being carried out by any person.
The Rules and Regulations for the grant and use of such license varies from state to state. For instance The Delhi Municipal Corporation Act, 1957 has laid down the specific activities for which trade/storage license is mandatorily to be obtained before carrying out any such activity or storing any such articles as specified therein by the Municipal Corporation of Delhi.
Every trader engaged in a general trading activity within the territorial limits of any municipal corporation is required to obtain a trade license. The class of trade license differs from state to state and is based on the nature of the business activity being carried out.
List of Activities requiring Trade License (Indicative List):
This is an indicative list. The same may vary from state to state.