The trade market is booming like wildfire in the modern day. The majority of people today want to facilitate trade. And for this one must obtain a Trade License. The process of legally establishing one’s trade is simple. The validity of a firm or organization, in general, is heavily influenced by the trade license. Every business owner must obtain a trade license in order for the trading system to function effectively. Your commercial activity will be verified by a Trade License. The process for obtaining a trade license undoubtedly varies from state to state. We will learn about the Trade License in Madhya Pradesh application process in this article. Analyzing the laws and regulations of the state in terms of its Trade law and company’s pattern is crucial to obtaining a Trade License in Madhya Pradesh. The purpose of this blog is to familiarise readers with the conditions that must be met in order to apply for a Trade License in Madhya Pradesh.

Trade License in Madhya Pradesh

A Trade License is an essential document for an individual carrying trade business in Madhya Pradesh. It is compulsory to be obtained by all the trade owners in order to regulate the trade activities in the state. The documents and process to obtain Trade License vary from state to state. 

 Essential Components of a Trade License

The following are the essential components of a Trade License:

• Before launching a new business, an individual or group must register it with the local administration.

• But starting a business is different from getting a trade license. If you hold a trade license, you are permitted to launch a business.

• Through local statutes, the state government controls the issuing of trade licenses.

• To be granted a license, a business must adhere to the regulations set forth by the state’s corporate and safety authorities.

• The holder of a trade license is not granted any form of property ownership rights.

• The License only enables the holder to engage in commercial activity in furtherance of the stated objective.

The objective of the Trade License in Madhya Pradesh

The Trade License in Madhya Pradesh has the following objectives:

• When issuing a Trade License, the government’s principal objective is to ensure that no one is engaging in any illegal commerce or unethical business practices.
• To conduct business legally and avoid incurring huge fines, everyone who does so must obtain a License.

Eligibility Criterion to acquire a Trade License in Madhya Pradesh

A Trade License in Madhya Pradesh has set the following eligibility criteria to be fulfilled while obtaining the same:  

• Any Madhya Pradesh resident who is at least eighteen years old can submit an application for a trade permit.
• No violent past must be evident in the claimant’s history.
• The company needs a valid License.
• Within 30 days of the company’s launch, this Trade License must be secured.
• An industrial Trade License is required if you want to start a small, medium, or large-scale factory or manufacturing enterprise.
• Every commercial or retail establishment needs a shop License.
• Restaurants, canteens, and food carts are all examples of dining facilities that require a License.

Documents Required to attain a Trade License in Madhya Pradesh

The following documents must be provided when applying for a Trade License in Madhya Pradesh:

• Identification proof that is issued by the government (Driver’s License, Voter ID, PAN card, or Aadhar card^[1]).
• The Address Proof (Electricity Bill or Telephone Bill supporting it).
• Article Notes (In case of Company)
• Include information regarding the property’s registration or tax receipt if the firm comes out of privately held space.
• Provide a copy of the lease or a statement from the landlord, confirming that they have no concerns if the business is operated in rented space.
• A passport-size photograph of the owner.
• The original copy of the challan must be submitted along with the photocopies of the other documents.

Process Duration to obtain a Trade License in Madhya Pradesh

To obtain a Trade License in Madhya Pradesh, it takes the following time period, although it also depends upon the document verification and application submission:

• The certificate for the Trade License can be provided within thirty days following receipt of a complete application and all necessary documentation.
• An appeal may be made to the responsible official if the application is denied. It takes fifteen days to decide on the initial appeal.

The Authorities engaged for Trade License in Madhya Pradesh

The following are the authorities in respect of Trade License:

• The administration at Nagar Nigam and Nagar Palika is under the control of the Municipal Commissioner, Additional Commissioner, or Deputy Commissioner, who also has the power to approve certificates for Trade License in Madhya Pradesh.
• The project officer or the sub-divisional officer of the Urban Local Bodies is the first appellate office in the event the certificate is denied.
• The divisional officer of each Urban Local Body of the establishment serves as the second appellate officer.

Fees to obtain a Trade License in Madhya Pradesh 

The following are the fees to obtain the license in the state:

• The price to issue a License is not predetermined; rather, it is revised every three years.
• However, while applying for a Trade License online, the state of Madhya Pradesh e-Nagar Palika charges a service fee of Rs. 10 for each application submission.
• For the License to be valid, the Mayor-in-Council, the Corporation’s Commissioner, or any other municipal officer must authorize, approve, declare, or be convinced.

Procedure and other Prerequisites to obtain a Trade License in Madhya Pradesh

The candidate can submit an online application for a Trade License using the e-Nagar Palika website in Madhya Pradesh. The following process requires to be followed up:

• Step 1: Visit the e-Nagar Palika website to submit an online application. Choose the “Online Form-Trade License” link from the Business section of the Home page.
• Step 2: The Madhya Pradesh Trade License application online appears. Enter the required data, which is comprised of the following.

-Name and address of the company

-Document uploads area for self-declarations

• Step 3: After successfully submitting the application form, the registration number and the fee challan will be generated (if offline).
• Step 4: Following the proper authority’s confirmation and approval of the submitted application, the area inspector will inspect the trading location.
• Step 5: The application will be approved if the verification procedure is successful.
• Step 6: A communication regarding the approval status and fee payment will be given after final approval.

Application Progress Verification

By entering the application number and selecting “Get Status,” in the online portal, the applicant can get aware of the status of their application.

Getting Access to the Certificate

By entering their application number and selecting “Get Certificate,” in the online portal, applicants can download or print their certificates.

Conclusion

People need to be aware of the aforementioned process in order to obtain a Trade License in Madhya Pradesh. The aforementioned laws and guidelines have been created with the intention of offering a simple administrative framework for getting a Trade License in Madhya Pradesh. The legal professionals at BizAdvisors.io make it simple for an individual to get the License.

Read our article:A Complete Procedure of Getting Trade License in Kerala