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A Trade Licence is a legal certificate issued by the municipal authority that permits the individuals or businesses to carry out a specific commercial activity at a particular location. It ensures that the business adheres to relevant laws, regulations and safety standards laid down by the local authority. Obtaining a trade licence is a fundamental step before commencing operations and is mandatory for most of the businesses including shops, offices, restaurants, factories and service establishments.

The licence is governed by the local Municipal Corporation or Urban Local Body of the respective city or state and must be obtained before the commencement of a business. At Lawfinity, we assist the entrepreneurs and companies by handling the entire trade licence process from identifying the correct licensing authority to preparing documentation, submitting applications and ensuring timely renewals and compliance checks.

A Trade Licence is more than just a regulatory formality. It is the mandatory requirement for conducting any commercial activity legally. It is needed to prevent the businesses from carrying out operations in any unauthorized locations or engaging in an unethical or hazardous practices. It ensures the safety of the people, maintains integrity and keeps the local government informed about commercial establishments operating within its jurisdiction. Without this licence, businesses remain at risk being penalized or even shut down.

1. Consultation & Eligibility Check: Our team at Lawfinity will understand your business and determine the correct licensing jurisdiction and category.
2. Document Preparation: We gather and prepare all required documents as per local municipal guidelines.
3. Application Submission: The application is filed online or offline (depending on the municipal body) along with fees and supporting documents.
4. Inspection (If Applicable): The local authority may conduct an inspection of the premises to verify business compliance.
5. Licence Issuance: Once the verification is complete, the licence is issued, typically valid for 1 year and renewable annually.

• Monetary Penalties Operating a business without a valid trade licence or with an expired one can result in: Monetary fines ranging from ₹1,000 to ₹50,000 depending on the violation.
• Legal Notices & Closures Legal notices or closure orders issued by the municipal authority.
• Severe Non-Compliance In severe cases, sealing of the premises or criminal charges may be initiated for repeated non-compliance. Renewals must be done on time to avoid late fees or revocation of licence.