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 Tamil Nadu. 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 Tamil Nadu 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 License in Tamil Nadu in detail. 

Businesses that Requires to have a Trade License in Tamil Nadu 

In Tamil Nadu, the following categories of businesses are required to obtain a Trade License- 

• Hotels 
• Restaurants 
• Canteen 
• Food stall 
• Bakeries 
• Outlets selling meat and vegetable 
• Manufacturing Industries 
• Factories 
• Flour mills 
• Cyber cafes, etc 

Documents necessary for Trade License in Tamil Nadu 

To apply for a Trade License in Tamil Nadu, you’ll need the following documents; this list of documents is not exhaustive in nature-  

Applicant when a corporate entity  

• Pan Card of the company 
• MOA 
• AOA 
• Incorporation Certificate and other ID proofs. 

Applicant when an individual  

• Identity and Address proof 
• Property or Rent agreement 
• No Objection Certificates from an immediate neighbour or as required  
• Occupancy certificate 
• Khata Certificates and extracts 
• Business plan of the trade business 

Documentation required in  Special Circumstances 

• Plant and structure approval papers 
• Information on the machinery, power, or location. 
• Documents proving the Inspector of Factories’ approval (if applicable) 
• The decision of the Deputy Director of Public Health in Urban Local Bodies is documented in this document (in case of non-availability of Municipal Health Officer) 
• The respective Fire and Revenue Services Departments have given their approval. 
• Permission from the relevant PCC to establish the workshop/workplace/industry 

Procedure for Getting Trade License in Tamil Nadu 

The procedure for obtaining, processing, or cancelling a Trade License varies from state to state and even from a town or panchayat to a city. The procedures for both situations are shown in the section below- 

Urban Areas 

1. Securing the Form- To obtain Form-1, first, go to the Tamil Nadu government’s official website and pay a charge of Rs. 5. 

2. Complete the required information- In the said form, the candidate must fill out the following information 

• The applicant’s full name, 
• The applicant’s age, and 
• The purpose for which the property is to be used, 
• Phone number (mobile) 
• Address of residence 
• Name of the building’s owner Trade license address 
• Date of the prior year’s property tax number 
• Timeline for obtaining a license 
• The building must be rented on a monthly basis. 
• Business field 
• The specifics of past permits that have been issued 
• The license amount and receipt number, as well as the date 

3. Submit your application- Before the deadline; submit the completed application to the Commissioner. 

4. Verification of the application- The Commissioner will then review the application to see if everything is in order. The Commissioner will remind the applicant to deposit the licensing fee after successful verification. 

After the license’s terms have expired, the applicant must apply for a renewal. Municipalities must submit their budgets by March 1st, while companies must submit their budgets 45 days before the start of the fiscal year^[1]. 

Rural Areas 

1. Submit an electronic application- Fill out the prescribed application on the E-town panchayat website. Remember to include the needed papers in a standard format. 

2. Sanitary Inspector’s Inspection Decision- The correctly completed application must be delivered to the sanitary inspector, who will schedule a vetting procedure. An email and SMS notification will be sent to the applicant informing them of the decision. 

3. Inspection and Reporting- The inspector examines the business and its equipment. After that, he or she will draught an inspection report using the portal’s details. 

4. Pay the fees- The charge information, as determined by the council/executive officer and specified in the web portal by the concerned inspector 

5. Present to the Sanitary Officer- The sanitary inspector gives the appropriate Sanitary Officer the inspection file and report. 

6. Scrutinization- The file and inspection report are examined by the Sanitary Officer (SO). If the case requires it, he or she may choose to conduct another vetting step. 

7. Send to the Chief executive officer- The Sanitary Officer sends the paperwork to the Executive Officer for approval and verification. 

8. Demand Notice- Following the approval of the application, the relevant body will issue a demand notice directing the applicant to pay the charge. 

9. Obtaining a License- Following the receipt of the required money, the licence is granted to the concerned applicant. 

Conclusion 

A Trade License in Tamil Nadu acts as a basic legal consent for enterprises, requiring them to follow the underlying rules and regulations. A Trade License’s paperwork requirements and registration process vary from state-to-state. As a result, it would be advantageous to have a basic understanding of the applicable law before beginning the registration procedure. Consult with an expert for a Trade License in Tamil Nadu. You can also reach an expert at Bizadvisor.io; they also have a team of experts that can help you.

Read our article:How to obtain Trade License in Maharashtra