Trade Licence is required to conduct trade, these are of three types viz. Industrial Licence, Shop Licence and Food Establishment Licence. Respective State Governments are regulating and granting these services.
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Trade Licence is a Licence to conduct trade, it is given in the form of a certificate which specifies to commence and carry on particular trade specified in the certificate at particular location specified in the certificate.
Trade Licence is the subject matter of State Government and the revenue of such activities are collected by State Government. Thus, Municipal Corporations are the regulating authority in each state for granting / renewal and surrender of such Licence. These Licences issued entitled the applicant to conduct and carry on the activities for goods / services mentioned in licence certificate. Applicant cannot carry on any trade in goods / services for activities which are not mentioned in Licence Certificate granted. To carry on any other activity, the applicant needs to submit application for renewal of licence by incorporating other additional activities.
The Municipal Authority generally issues licence in accordance with geographical locations and adherence to safety measures it has the authority to curb or restrict particular trade in specific areas, example trade licence for fire crackers is not granted for shop in market area, it require specific open area / ground away from dense population.
There are three categories of Trade licences; Industrial Licence, Shop Licence and Food Establishment Licence.
Industrial Licence: It issued keeping adherence to Industrial policy of the state, this type of trade licence is granted to small, medium and large industries for carry on the manufacturing activities in industrial area earmarked by the State Government.
Shop Licence: It is issued keeping adherence to dangerous and offensive trade such as sale of fire crackers, candle manufacturer, cracker manufacturer, sale of firewood etc.
Food Establishment Licence: It is issued keeping adherence to food, safety and standard of the food product being process and sale in such establishment. It ensure regarding the specified measures taken for the hygiene and food standard safety.
Duration of Trade Licence: Generally Trade Licence is granted and valid for the period of one financial year ending on 31st March every year, the application for renewal of licence may be applied before its expiry, every year from 01st January to 31st March application for renewal of trade licences are accepted and processed subject to respective State Government Regulations for granting and renewal of Trade Licence.
In Delhi, granting and renewal of Trade Licence rest with the Municipality of Delhi divided into three Jurisdictions; North Delhi Municipal Corporation (NDMC), South Delhi Municipal Corporation (SDMC), and East Delhi Municipal Corporation (EDMC). The application of trade licence is an online e-filing process can be accessed from the portal of Municipal Corporation of Delhi (MCD), it can be accessed on mcdonline.gov.in
In Uttar Pradesh, granting and renewal of Trade Licence rest with the Urban Local Bodies of Government of Uttar Pradesh. The application of trade licence is an online e-filing process can be accessed from the portal of E-nagarseva Portal e-nagarsewaup.gov.in. Nivesh Mitra is also a single window system established by Government of Uttar Pradesh, it is an initiative for ease of doing business, application for granting and renewal of trade licence can be made through the portal of nivesh mitra can be accessed on niveshmitra.up.nic.in
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