Important Points

Exchange License is a permit or authorization issued by city enterprise giving consent to bear on a specific business at specific address. It guarantees that the residents are not antagonistically influenced by wellbeing risk and irritation by ill-advised conveying of exchange. The arrangement of exchange permit is set around the State government keeping in mind the end goal to screen and manage the exchange inside a city. It is issued by the metropolitan enterprise of where business is found. It is essentially an authorization to bear on exchange or business at the premises for which it is issued. An unapproved exchange is an offense. Setindiabiz encourages you to acquire exchange permit.

Trade License

Trade license is the way to regulate any person to carry out any specific business from a particular locality. It is regulated to ensure that the citizen is not adversely affected by Health Hazard & Nuisance by improper carrying of a trade. The trade license is a means to ensure that the manner and locality in which the business is being carried on is according to the relevant rules, standards and safety guidelines.

Trade licence is regulated by State Government through their municipal corporations State Act. Some state has made it mandatory and in other states it is optional. The fee for Trade License is also different in different states. Some cities collect a business license fee on an annual basis, some even receives a percentage of business gross sale. Delhi Government has recently relived the MSME from compulsion of getting a trade license.

The objective of Trade License is control business locations by way of putting constraints on people from running certain types of businesses from their home to maintains separate business environment and preserves locality environment.

One must apply for a trade license within 15 days of starting a business but in some states it must be applied 3 months prior to start of activity. Licenses are issued by the authorized department of municipal corporation in consultation with other specialized departments like fire brigade, health, engineering.

Trade License imposes a number of specific responsibility on the entrepreneur in failure of which, authority may impose heavy fine.

The minimum criteria for getting a Trade Licence

Documents required for trade licence