Establishing a business with proper credentials is the most important step for any business owner. Obtaining a Trade License does exactly that. A Trade License varying from state to state provides for a permit to establish a trade business involving only areas that were permitted. A Trade License in Delhi is what guides the trade business in Delhi. The Delhi municipal corporation (DMC) provides for the same. 

What do you mean by a Trade License? 

To engage in commercial and trade-related business, one needs to acquire a Trade License for the said business. A Trade License is maintained and managed by the state authority and it permits a business to exist and conduct business within a municipality. A trading business can carry out only those transactions that have been permitted by the concerned authority. Any transaction apart from those permitted, would not be of a legal sanction. A Trade License in Delhi is monitored and controlled by the Municipal Corporation of Delhi. 

Though a Trade License in Delhi is monitored by the state authority, The Shop and Establishment Act provides for the rules and regulations for a Trade License in Delhi. The Trade Licenses are divided into three parts i.e.  Food Business, Manufacturing Industries and Trade and other Related Service Business. 

Need of Trade License in Delhi 

Having a Trade License in Delhi would help- 

• Provide the proof of authenticity and quality in works, 
• Develop trust and fair dealing among others, 
• Avoid exploitation of anyone involved, 
• Prevent illicit trades, and  
• Promote business growth. 

Fees

The application process for a Trade License in Delhi will include a cost of Rs. 500/-, while the annual license fees will depend on the type of business to be established. Depending upon the type of business and the area in utilization it may vary from Rs 50/- per annum to Rs 500/- per annum. 

Procedure to get Trade License in Delhi  

A Trade License in Delhi can be obtained both online and offline. 

Online Method 

Step 1: Visit the official portal for Municipal Cooperation of Delhi. 

Step 2: Choose region – North DMC, South DMC, or East DMC. 

Step 3: Select Trade/ Storage License tab. 

Step 4: Select Application for New License to apply for a new license. 

Step 5: Fill out all the requested information for a new license. Information such as- 

• Type of license,  
• Business information, 
• Fire department NOC,  
• Fee information,  
• Property Tax information 
• And other information. 

Step 6: Upload and submit the required documents. 

Step 7: The submitted documents are verified by the urban local bodies. 

Step 8: Once documents are submitted and the application form is verified, a unique application number is generated. 

Step 9: Once the authorized officials are satisfied, the fee to be paid is determined. 

Step 10: The applicant is made to know the fee required to be paid through mail or text to the registered email and phone number. 

Step 11: To make the fee payment, the following information is required: 

• Authority name 
• Collection date 
• Collection location 
• Payment method 
• Bank information 
• And all other payment information that is required. 

Step 12: An acknowledgement receipt is generated. The appropriate authority inspects and issues the Trade License when satisfied.  

Step 13: Upon approval of the application for a Trade License, notification will be sent to the applicant. The applicant can download a copy of the Trade License from the state’s record site by providing the application number and certificate number. 

The applicant visit the official portal and check the status of the application form if required and also the applicants can renew their expired Trade Licenses through the Delhi Municipal Corporation portal by selecting the renewal option in the official online portal. 

Offline Method 

Step 1: Visit the licensing department of the specific Municipal Cooperation of Delhi. 

Step 2: An application form is to be submitted to the executive. 

Step 3: Fill the application form accurately with details such as: 

• New Trade License information 
• Applicant’s residence information 
• Alternate owner information 
• Type of license 

Step 4: Submit the application form in an appropriate format to the concerned authority. 

Step 5: Attach the required documents as directed. 

Step 6: Pay the registration fees as instructed. 

Step 7: A transaction number is sent to the registered email or phone number. 

It will also inform the applicant about the status of the application. 

Step 8: To check the status of the application online, the application must make a note of the transaction ID. 

Required Documents for Trade License in Delhi 

Since a Trade License in Delhi is obtained to establish a legally backed-up trade business, details related to both the business and the applicant is required- 

• Address proof and identity proof of the applicant. 
• PAN card details. 
• Certificate of incorporation. 
• Memorandum of Association, Articles of Association. 
• Ownership details for the establishment or the rent agreement of the establishment. 
• No objection certificate^[1] from the land owner, if required. 
• Business plan to be initiated. 

Conclusion 

A Trade License can be considered the first step toward establishing a trade business. Since the trade business is a state matter and looked after by the municipalities and the gram panchayats, obtaining a Trade License in various states of the country may differ. Trade License in Delhi is similarly, though, under the Shops and Establishment Act, it is looked after by the Delhi municipal corporation. The step-by-step process of obtaining a Trade License in Delhi is fairly a simple process due to its availability in both offline and online modes of registration. However, in case any query or doubt arises one can surely contact Bizadvisors.

Read our article:How to obtain Trade License in Maharashtra