Any person or organization can conduct a trade or business inside the boundaries of a corporation or municipality with the help of a trade license. It is a document provided by the government. To control diverse commercial operations in the nation, the government has made obtaining a Trade License in Gujarat mandatory for people looking to open a firm. Each state has a different application procedure for a trade license. In this article, we take a close look at the Trade License in Gujarat application process.

What is Trade License?

Simply put, a trade license is a license or certification needed for a person or firm to operate a business. Typically, the state authority in question issues this license for a specific city limit. The holder of this license will be able to start a business in a specific area. The applicant must make sure that the business is operated in accordance with the license’s requirements.

The applicant is not permitted to operate any other businesses with this license than the one for which it was given. Aside from this, the license does not give the holder any further legal rights to the property where the business is located or the ability to secure the property.

The main objective of a Trade License in Gujarat

The following are a few objectives of a Trade License in Gujarat:

1. To impose commercial regulations inside a specific community or municipality.
2. Make sure that a specific town or locality does not engage in anti-competitive behavior.
3. To keep an eye on a company’s operations. In addition to this, local authorities can continuously monitor the operations of a corporation.
4. A business would be in accordance with the government if such a license were to be issued.
5. Through this license, a local authority can determine whether the business is breaking any laws or creating a nuisance in the community.
6. Businesses having such a license have a better reputation among customers. Their services would enjoy greater consumer confidence.
7. Businesses could avoid using residential properties for business purposes by obtaining a license type of regulation, therefore making sure that enterprises are governed.
8. The use of environmentally friendly materials to undertake operations within a specific locality is likewise governed by this type of license. Chemical and hazardous substances are prohibited within municipal and residential boundaries.

Conditions required for Trade License in Gujarat

The following are the few conditions for Trade License in Gujarat: 

• Any Gujarati citizen who is at least 18 years old may apply for a trade license.
• There should be no criminal history against the applicant.
• The company needs a valid permit.
• Within 30 days after the start of the business, this trade license must be secured.
• Get an industrial trade license if you want to start a small, medium, or large-scale manufacturing business or factory.
• Commercial or retail establishments need to get a shop license.
• Restaurants, canteens, and food stands should all have a food establishment license.

Documents required for Trade License in Gujarat

The following are the documents needed for Trade License in Gujarat:

• Statement of the projected capital for the company.
• If the applicant is a corporate body: a copy of the company’s articles and memorandum of association^[1]
• Information about any firm, whether it is operating in Gujarat State or another State
• Registration or agreement is required in the case of other business entities.
• An affidavit attesting to the truth of the data provided in the application
• Office rental agreement for commercial building premises
• Certification of Occupation
• Fire Department’s NOC
• Actual Revenue for the past three fiscal years
• Certificate of Registration
• Applicant’s evidence of identity.

The procedure for a Trade License in Gujarat

The Application’s Submission

The applicant must first submit an application with all the required documentation to the relevant State Government, Corporation, or Municipality for the purpose of Registration for the Certification of a Trade License in Gujarat. Depending on the state that the application is filed, the next step could be slightly different.

The Checklist Process

After the review of the documents provided in person to the relevant authorities has been completed successfully, depending on the applicable state, the verification procedure of the state license is issued.

The time it takes to process the certificate’s issuance

Following the successful conclusion of the review of the supplied documents, the authorized person needs between ten and fifteen days to process the issuance of the Trade License Certificate.

The Trade License’s Expired Status

In the majority of Indian states, the trade license certificate’s validity period is one year. Upon successful payment of the applicable Fee of Trade License Renewal, the related Trade License must be renewed by year’s end.

Fees

Every year that the license is in effect after the first application, the applicant must pay a fee that is frequently revised by the commission. Failure to pay will result in interest being charged at the bank rate on the outstanding balance.

Trade License Validity in Gujarat

The license is valid as of the date that the commission has indicated on the license. Unless it is suspended or revoked in accordance with the Act’s requirements, the Gujarat Trade License is valid for a period of twenty-five years or for the length of time specified by the commission.

Conclusion 

Trade License in Gujarat serves as an essential kind of legal authorization for businesses, obliging them to abide by the governing laws and rules. The documentation needs and registration procedure for a Trade License in Gujarat. Therefore, before starting the registration process, it would be good to have a fundamental understanding of the applicable law. Consult a professional to obtain a Trade License in Gujarat. You can also reach Bizadvisors.io for more information.

Read our article:A Complete Procedure of Trade License in Madhya Pradesh