India has increasingly becoming the new shoppers' stop for commercial activities. With the Government's approach to make the country a business hub many policies have been introduced facilitating the business development. Encouraging the citizens of the nation from being 'jobseekers' to 'job givers', investor friendly policies with reduced compliance burdens and costeffective schemes have enabled India to be a nation of budding entrepreneurs.

Facilitation of the business transaction comes with the indispensable responsibility of the Government to ascertain that the same does not harm the citizens of the country

Trade License

Fostering the new businesses has always been promoted by the Government. Considering that the business activities carried on in the country are not hazardous or nuisance causing to the individuals of the nation, obtaining of a trade license has been necessitated.

Any business entity interested to commence a new business requires an authorization from the local Government in the form of a Trade license which is be mandatorily procured before beginning manufacturing, exchange or storage of any activity/commodity.

Trade license limits the liabilities of the license owners ensuring that no unethical or illegal practices are being carried on thus reinforcing the credibility of the business managers.

Validity of the trade license

The trade license issued by the authorities is valid for a period of one year and requires to be renewed annually. Subsequent to the expiry of this period, the entity is required to apply for renewal of the trade license in order to allow the business house to continue its operations in accordance with the applicable provisions of law in the country.

Renewal

Once a license is issued by the authority it has to be renewed periodically to ensure that the business is being carried out in accordance with local laws. In India, trade licenses are renewed in the period from January 1st to March 31st. Applications for Trade license renewal of such licenses must be made at least 30 days before the commencement of the year for which renewal is sought. Some of the documents required to be submitted for renewal of trade license are stated below:

  • Original License copy;
  • Previous year fees challans;
  • Latest tax paid receipt.

For the purpose of smooth carrying out business operations, the operators are required to obtain a valid trade license. The law mandates that the conditions stated under the license should be duly complied with by the license owner. Further, before the exhaustion of the term of the license, a duty is casted over the licensee to ensure timely renewal of the same authenticating the fact that the same abides by ethical business practices and recognizes its obligations of adherence to the requisite safety and standard norms.

For further information please contact at S.S Rana & Co. email: info@ssrana.in or call at (+91- 11 4012 3000). Our website can be accessed at www.ssrana.in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.