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What is a Trade License?

A trade license is a license permit to operate one or several business activities issued by the local government. It does not confer any transfer of ownership of any land and neither is permission given for activities other than what is provided for in the constitution.

Typical trade license is issued by a municipal authority together with other agencies such as the department of health, building, and fire. Every enterprise is disposes of trade license application to the respective authorities before engaging in activities like production, sale or positive storage of goods.

Application Process: The business houses must apply to the Licensing Department for a trade license in advance of their intended commencement date (usually 30 days prior). The application form and all other documents must be filed with the commissioner's office for consideration and approval.

Why Trade Licence?

What is a need of a trade licence to start any business? So, before we continue further you must understand this important question’s answer. In the last forty years, several forms of businesses were restricted in their operation by the government. After some time, the government started engaging with businesses and begun granting them trade licenses. These days, such licenses are issued to companies for carrying out a particular kind of business and trade activities within certain limits. These permits, for instance, will only be granted to individuals for specific business activities within a given area. No activity shall be undertaken by such businesses without first obtaining a trade licence from the relevant State authorities.

This is a legally required and important document issued by the municipal or state government. It allows operations of certain companies in a certain region. In addition, the corporation is issued these types of documents to establish that the company is operating within the confines of the law.

Various Trade Licenses

Food Business License
License to sell or serve food

A trade license encompasses any business activities which are food related or where food products are prepared and served such as hotels, restaurants and catering service.

  • Lodging service establishments, eateries and provisioning centers
  • Facilities such as discotheques, cinemas, malls (if there is food consumption)
  • Facilities like grocery shops providing cakes and pastries
  • Foodstuff retail-touting shops, dairy processing factories among other food retail outlets
Trade and Other Services License
Trade and Services License

Some businesses in the form of small trade or professional services, may also be offered a trade liscense. Here are a few possible scenarios;

  • Hairdressing or barbershops
  • Cctv installation and selling companies
  • Bay area film making company
  • Manufacturing Outsourcing Services
  • Manufacturing in small quantities of products
Eligibility for Applying for Trade Licence

The applicant shall guarantee fulfillment of the following conditions for them to apply for this licence:

  • • The applicant or any individual should be adult This means, 18 years and above should be the age of he/she seeking for this licence.
  • • The individual should have a clean record without any convictions for felonies or misdemeanours (Please note that the eligibility criteria may differ from one place to another)./strong>).
  • • The organisation of the individual should not have been involved in any malpractices.

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