Any establishment or business before commencing its activities is required to obtain a permit from its appropriate authority. A Trade License is a similar permission receipt that allows one to indulge in trade businesses. The trade businesses are governed through state-wise regulations, such as Trade Licenses in Maharashtra. Trade Licenses are regulated by the municipal authorities and other local offices. A Trade License is obtained with the aim to keep its authenticity and quality in check and have legal support. Trade License in Maharashtra is issued and maintained by the state authorities and Municipal Corporation of the state. The issuance of a license varies from state to state, depending on the local government. In this write up we are going to discuss about Trade Licence in Maharashtra in detail.
What is a Trade License?
A Trade License is an instrument required to commence a particular business or trade activity. Different types of activities and businesses require different types of Trade Licenses. A Trade License is a mandatory license to be obtained before starting a business, this provides the business with the ability to perform its activities to the best of its abilities. A Trade License is similar to a business permit that allows one to carry out their businesses with proper quality standards. The license only permits businesses issued in the license. Following are the reason to get Trade Licence-
- To create authenticity and trust.
- To ensure a prime quality.
- To prevent penal liabilities.
When You should Get Trade Licence?
A trade license is required to carry out various trade activities legally, hence, the most appropriate time to get a Trade License in Maharashtra is before commencing the trade activities. One is recommended to obtain a it at least three months prior to commencing its activities.The Trade License in Maharashtra is to be mandatorily obtained within 30 days of starting the trade business.
Type of Trade License in Maharashtra?
The Trade Licenses are divided into three segments:
Type A – Food Business
Establishments dealing with food and food-related businesses require a separate kind of trade license.
- Food service providers such as Caterers, Restaurants, Hotels, etc.
- Malls, Theaters, and Clubs
- Bakeries and Confectionary Stores
- Dairy retail stores, and any other premises which serve food
Type B – Manufacturing Industries
Industries involved in product manufacturing such as
- Medium-based manufacturing industries
- Large manufacturing units and industries
Type C – Trade and Other Related Service Business
Activities of trade and service requiring a license, such as
- Barber shops and Cyber cafes
- Small manufacturing units
- Medium manufacturing units
- Small scale industries
Procedure to Get Trade License in Maharashtra
Application for a trade license in Maharashtra can be made in an online as well as an offline mode.
Offline mode –
- In an offline mode, the applicant needs to collect all necessary required documents and physically submit all the documents to the responsible state authority.
- An applicant is required to contact the appropriate authority and collect forms as required.
- Follow the process as prescribed by the authority and submit as directed.
Online mode –
- In this mode, the applicant simply needs to visit the official portal of the appropriate authority such as the Municipal Corporation, or Gram Panchayat of the state.
- The applicant is required to fill the terms and conditions column that the applicant has to abide by.
- Applicants need to fill in the required details and documents regarding the trade license as directed.
- The submitted documents are authenticated electronically.
- Upon successful inspection, the applicant receives a confirmation for successful registration.
- Upon notification, the applicant is granted a trade license.
Documents Required to Get Trade License in Maharashtra
Applicant when a corporate entity
- Pan Card of the company
- Incorporation Certificate and other ID proofs.
Applicant when an individual
- Identity and Address proof
- Property or Rent agreement
- No Objection Certificate from an immediate neighbor or as required
- Occupancy certificate
- Khata certificates and extracts
- Business plan of the trade business
Eligibility to Get Trade License in Maharashtra
- The application must be submitted before starting the operations of a business, or within 30 days of starting the trade operations.
- The applicant must not be a minor, that is, the applicant must be of 18 years of age.
- The applicant must not have a criminal record.
- The business established must not be against the law and must be able to execute legal works related to the business.
To have a legitimate backup for any business relating to trade, one must have a Trade License. A Trade License looks after the working and execution of trade business. While it is required by all, these licenses are regulated by the state authorities. The Municipal and other local authorities such as the Gram Panchayat look after its proper functioning. The Trade License in Maharashtra is an example of such, where the license registration and its functioning are done under the eye of the state authority. Although obtaining it in Maharashtra is possible in both physical and electronic manner, doubts may arise for which one can take help from Bizadvisors.
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