DELHI TRADE LICENSE
Trade license is a kind of certificate or document that allows a company to carry on the business or trade activities in particular municipal limit for which it is issued. In Delhi, the Municipal Corporation of Delhi (MCD) issue trade licenses to traders and establishment to monitor and regulate various trade activities at the city level.
ACCORDING TO DELHI SHOPS AND ESTABLISHMENT ACT, 1954
Delhi shops and establishment act, 1954 issue following conditions on basis of which the Delhi trade license is issued. There is a compulsory registration of shops or established under this act within 30 days of commencement of business.
These are the following aspect regulated by the shop and establishment act for doing business in India-
1. On the basis of working hours
2. Provisions related to rest intervals, spread over, opening and closing hours, closed days, national and religious holidays, overtime work.
3. Regulation related to children, young person, woman
4. Rules and regulation regarding paid leaves
5. Rules and regulation regarding employment and termination of service
6. Employee and Employer obligations related to work as well as related to each other
7. Obligations related to the maintenance of the records and the registers
8. Precautions against accident or fire, etc.
9. The responsibility of the shop or establishment toward social welfare.
10. Rules and regulations concerning the display of notice.
BUSINESSES THAT REQUIRED TRADE LICENSE-
Trade license is a must for all the commercial business that fall under these categories -
1. A restaurant, hotel, eating house, a café or any other refreshing house
2. A cinema, theatre or any other place of public entertainment
3. An establishment or administrative service on which person employed.
WHY TRADE LICENSE REQUIRED?
To ensure that the person is not carrying out any unethical business practice and following the relevant rules regulation, safety measures and guidelines the government has made is necessary to obtain a trade license. It also protects the owner of the business against certain liability. There is various type of business licenses that offer a different level of protection.
REQUIRED DOCUMENTS-
For obtaining Delhi trade license these are the important document furnished by the applicant at the time of submitting the application for trade license-
1. Address proof and identity proof of the individual.
2. Certificate of the incorporation, AOA and MOA of the company.
3. Affidavit.
4. Canceled cheque and the bank statement.
5. Legal occupancy document proof of the establishment or allotment letter of the government agency.
6. Document proof for the establishment of trade.
7. Lease deed of the constitution.
8. Documentary proof for non- existence of unauthorized construction.
9. No objection certificate from the land-owning agency.
Document required for the renewal of trade license-
1. Address proof and identity proof of the individual.
2. Original license copy.
3. Old G-8 receipt.
4. Application for renewal of license.
Document required for the duplicate trade license-
1. First information report ( FIR).
2. Indemnity bond in prescribed format.
ANNUAL LICENSE FEE FOR GRANT TRADE LICENSE-
| Categories of the localities(in which trade premises are existing) | Upto 10 sq. Mtr | Between 10 to 20 sq. Mtr | Above 20 sq. Mtr | The fee will not exceed in a year in respect of single license |
| A | 3000.00 | 7500.00 | 125.00 | 50000.00 |
| B | 3000.00 | 7500.00 | 125.00 | 50000.00 |
| C | 2000.00 | 5000.00 | 100.00 | 40000.00 |
| D | 2000.00 | 5000.00 | 100.00 | 40000.00 |
| E | 1000.00 | 2500.00 | 75.00 | 30000.00 |
| F | 1000.00 | 2500.00 | 75.00 | 30000.00 |
| G | 1000.00 | 2500.00 | 75.00 | 30000.00 |
| H | 1000.00 | 2500.00 | 75.00 | 30000.00 |
Process for trade license-
1. Go to the online portal of MCD (Municipal corporation of Delhi).
2. Select your region i.e. north, south or east DMC.
3. On the home page, there is a visibility of “Trade or Storage “Tab” click on it.
4. Now, you can click on “Application of new licenses” where can directed to the new trade license application page.
5. Then, the application has to be completed with all required information and then click on the submit button.
6. After that upload the required documents and submit the same.
7. Once this process is completed, the uploaded documents are verified by the ULB officials.
8. After successful submission of the application, a unique application number will be generated.
9. After that, the applicant will be notified through SMS on their mobile number regarding making the requisite payment.
10. At the time of payment, you have to fill the following details-
• Ubl name
• Collection date
• Collection center
• Payment date
• Bank details
The final step is to make payment by clicking on “make payment” tab.
After that acknowledgment receipt is generated.
CONCLUSION-
Obtaining a trade license is important for every commercial business, it gives various privileges to the owner of the business. The process of trade license is not complicated as compared to other licenses. Through the process of issuing a trade license, the government also ensures that the business conduct legal and ethical practice.
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