Every business organization needs a business license issued by the supervisory authorities, either the local authority or the state government. This license indicates the scope of your activity, namely H. What you can and cannot do. A Business license is also important to gain access to the government benefits that have been introduced to promote trade and commerce. Different levels of government are licensed to different types of companies, such as: B. the municipality, the district administration, or even the state government. In India, each country has its own rules and regulations, so it is essential to keep up with these rules.
What is a Trade License?
The concept of a business license is simple. It is a negotiation authorization certificate issued to the applicant for trade in a particular area or zone. The certificate enables distributors to start their operations efficiently. Each company needs a separate business license. If a business is sold or transferred from one owner to another, a new business license is required to continue operating. This means that Trade Licenses are not transferable.
Why was the Trade License introduced?
Business licenses were introduced in India almost forty years ago. Local authorities under various state governments are solely responsible for regulation in this area. Issuing a business license to a company means that the government has examined and verified that the company complies with all applicable laws and directives. It also ensures that unethical business practices are avoided or exposed. The granting of a business license also implies the cost of doing such business. B. Pollution should not be assumed by the public and the responsibility for managing these risks can be effectively transferred to the company.
Who is eligible for a business license?
A business license requires that the following criteria are met:
1. The applicant cannot have a criminal record.
2. He or she must be over 18 years old.
3. The business proposal must be legally acceptable.
Who issues a business license?
Proof of the business license is carried out by the local authority of the respective state government, where the business is located and where the operations are carried out. Different municipal companies require the company to pass several tests before the license is granted, eg. In terms of health and safety, etc.
What documents are required?
1.) The documents required for business licenses vary according to the type of business that will be created.
2.) For companies, LLP and companies, a PAN card with a foundation certificate is required.
3.) The last document on the payment of the municipal property tax.
4.) The Aadhar card is compulsory for individuals.
5.) Form NOC of your next door neighbor.
6.) Declaration of consent or rental documents of the owner.
7.) An authorized floor plan of your commercial building with all parts.
8.) Khata extract
9.) Khata certificate
10.) OK or certificate of occupancy
11.) Sanction plan
When will the new license be issued?
The new license will be issued once all the admission criteria have been met, the Trade License tests have been carried out and the Trade License has been paid. Metropolitan cities usually take 7-10 days to issue the certificate. Small towns and rural areas may take longer.
What is the validity?
A granted Business license status remains valid for one year and must then be renewed each year between January 1 and March 31 of each year. Renewal requests must be made within 30 days of expiration; otherwise, a new license must be requested.
1. The latest business license
2. Challans from the previous year.
3. Last receipt of property tax paid