Today, in order to start a business in Bihar, every company needs to obtain a Trade License in Bihar. Either the State Government or the relevant Municipal Corporation issues it. It serves as authorization for the company to perform its duties and engage in commercial activity. However, other than the rights listed, this license does not grant the applicant any more rights. The applicant must submit an application for a license to the Municipal Corporation. A trade license is a document or certificate that authorizes someone to conduct business or engage in commerce in the specific area for which it is issued. In order to oversee and control the business or trade, the state governments grant trade licenses. In this article, we will thoroughly discuss the procedure for Trade License in Bihar.

 What is Trade License?

A Trade License is a certificate that authorizes the applicant (the individual looking to start a business) to start a specific trade or business in a specific place. It made sure that all safety regulations set forth by the State Municipal Corporation were followed when conducting business or engaging in commerce. It guards against any health risks affecting the locals. The license, however, only permits the holder to engage in the trade or company for which it was issued. Additionally, the license holder does not acquire any type of property ownership as a result of this agreement.

Companies that require a Trade License in Bihar

All businesses that fit into one of the following categories are required to have a Trade Licence in Bihar

• A place of business or administrative service where the majority of the employees or clients are office workers
• A boarding or eating establishment, a cafe, or any other type of refreshment facility.
• A theatre, a movie theatre, or any other public entertainment venue.

Advantages of Trade License in Bihar

• Avoid taking advantage of the staff that serves the location.
• Implement appropriate safety precautions to prevent accidents caused by fire.
• Encourage companies to use ethical business methods so as to protect everyone’s interests.
• Protecting consumer interests from illegal trade operations will boost the company’s reputation over time.
• Boost business expansion and credibility to a high level.

Documents needed for Trade License in Bihar

The following are the documents needed to obtain Trade License in Bihar:

• Application form using the format required.
• Address verification for the company.
• Proof of the applicant’s identity.
• A copy of the Memorandum of Association (MOA), the Articles of Association (AOA), and the Certificate of Incorporation is needed if the applicant is a company.
• In the event of an Limited Liability Partnership, a copy of the LLP agreement is necessary.
• In the event of a proprietorship, the PAN of the individual is necessary unless the company’s PAN is available;
• A copy of the Partnership Deed is necessary for the event of a Partnership Firm.
• PAN card of the company.
• Aadhar Card and PAN must be submitted by the individual applicant.
• It is necessary to obtain a No Objection Certificate (NOC) from the property’s close neighbor before starting a business or commerce.
• A copy of the most recent municipal property tax receipt, if the property is owned; otherwise, a lease agreement or a letter from the property owner authorizing the registration of the business.
• Office layout plan that has been certified.

Requirements for a Trade License in Bihar

Some of the prerequisites outlined by the government for acquiring a Trade Licence in Bihar are as follows:

• The applicant must be at least 18 years old;
• The candidate must not have any prior convictions;
• The Company should be legitimate.

Procedure

The following are the steps to obtain Trade License in Bihar:

Step 1: The applicant must first go to the license office, which can be found up to a certain municipal limit.

Step 2: For the purpose of requesting a trade license, the applicant must make a request to the executive. The Bihar government’s official website has a trade license application form that may be downloaded as well.

Step 3: Complete the application form accurately and without making any mistakes. Fill out the application form with the following data.

• Details of a newly traded license
• Applicants’ address information
• Details of the alternate owner
• license class

Step 4: You must submit an application form to the relevant operator in the format specified, along with all necessary supporting documentation.

Step 5: The applicant must submit the application form together with the required supporting documentation. After that, pay the registration fees as required.

Step 6: After submitting, the user will receive a transaction number to the provided mobile number with information about the registration’s outcome. To check the status of the application online, the application must make a note of the transaction ID.

Download Trade License Certificate

You will get a notification to your registered mobile number if the application form has been approved. The portal for the relevant state records will be updated with the details of the trade license. The certificate and application numbers need to be entered to log into the official portal. After that, press the submit button. Finally, you can get the certificate for the trade license. The applicant can then download the trade license when it has been signed.

Conclusion 

In Bihar, obtaining a trade license is a legal requirement for every qualified establishment. The Municipal Corporation^[1] in question is in control of the grant. Online applications for this license are accepted through the official website of the government. Having said that, there may be another way to get a Trade License in Bihar. The applicant can also receive assistance from an established licensing business, like Bizadvisor.io for more information.

Read our article:A Complete Procedure of Trade License in Gujarat