Introduction
A Trade license is a type of document that permits the employer (person who seeking to open a business) to commence a particular trade in a particular area. The Municipal Corporation of the state issues the trade license to the individual who is seeking to establish their business. A trade license ensures that the business is carried on by adhering to all the standards of safety as issued by the State Municipal Corporation. It protects the residents from being affected by any health hazards. All businesses covered under the State Municipal Corporation Act of the state in which they are located must apply for a trade license.
Features of a Trade License in Mumbai
This is mandatory for all commercial businesses within Mumbai.
If an individual wants to obtain a trade license in Mumbai, then they need to be regulated their license by MCGM Municipal Corporation of Greater Mumbai.
There are different License exits for different business activities.
This is not valid for a long time or permanent this is for temporary use and it needs to be renewed over time.
This is valid for 1 year only after that it needs to be renewed.
The License fees are depending on the size and type of businesses.
The regular inspection held by MCGM officials checks if the company's compliance matches with the rules and regulations of the Ministry of Corporation.
Who Needs a Trade License?
A trade license in Mumbai is mandatory for all traders who are involved in general trading activity.
An individual who wants to establish their business and want to become an employer needs to obtain a trade license before starting their commercial business. Like:
Restaurants and cafes need a trade license to establish their food business in the market.
Factories and workshops also need a trade license to pursue their business.
Service-based businesses like hospitals, salons, and gyms also need a trade license before starting their businesses.
Businesses that store goods and materials like warehouses need trade licenses to do their work without any hassle.
What if the License Application is Rejected?
If the application of the trade license is rejected then the individual can reapply for their application of trade license.
In some cases, the application will be rejected because of incomplete documents, unpaid fees, taking more time than required and
If needed hire a legal consultant to take advice from them on this topic or rejection.
You can file an appeal with the MCGM within 30 days.
Eligibility Criteria for Trade License in Mumbai
The individual should not be involved in any illegal activity if they want to get a trade license for their business establishment.
The individual should not be a minor it means that the person must be an 18+ major to get their license and pursue their business.
For which business individuals need to get that license it should be a legal business, not an illegal activity.
Documents Needed for Trade License in Mumbai
Address proof of the business
ID proof of the applicant
Aadhaar card
PAN of the employer in case of ownership, PAN of the partners in case of a firm, or PAN of the company or Limited Liability Partnership (LLP)
Memorandum of Association (MOA), Articles of Association (AOA) and Certificate of establishment in case of companies
Certificate of registration in case of a partnership firm and LLP
A latest municipal property tax receipt in case the premises are owned, else lease document or consent letter of the owner of the property (NOC) where the business is registered.
NOC from the pollution control board and fire department, if applicable
NOC of the neighbours (nearby property owners)
Katha certificate
Certified layout plan of the office
Step-by-Step Guide to Applying for a Trade License in Mumbai
1. The individual can apply for a trade license online or offline.
2. There are different types of trade licenses:
Industries License,
Shop Licenses and
Food Establishment License.
Offline Process to Apply for a Trade License:
STEP 1: Visit the MCGM office in the area where your business is located.
STEP 2: Get the trade application form from that government office.
STEP 3: This is mandatory to fill in all the required details.
STEP 4: After filling in all the details submit the application form to the municipal corporation office with the required documents which are mandatory to be attested with the application form.
STEP 5: The government officials will verify all the documents and check all the details that should be filled correctly.
STEP 6: After the verification is done then the government officer will issue a unique application ID which you can use as your trade license number.
STEP 7: After getting the Trade License you have to revisit the municipal corporation office to pay the required fees.
STEP 8: After fulfilling all the conditions and verifying documents by officials and paying the fees the trade license will be issued.
Online Process to Apply for a Trade License
STEP 1: First visit the MCGM citizen online portal.
STEP 2: After reaching that portal click on the ‘Citizen Online Services’ option after that select the ‘Trade License’ option.
STEP 3: After selecting ‘Trade License’ click on the ‘Apply for Trade License’ option.
STEP 4: After selecting the option of Applying find the registration form and fill that out.
STEP 5: After filling out the registration form upload all the mandatory documents on the website.
STEP 6: After uploading all the required documents, the government officials will verify the application and also verify the uploaded documents.
STEP 7: After the verification of the application and documents the unique application number will be issued.
STEP 8: After verification, you have to pay the required fee, and to pay the fees you have to revisit the municipal corporation’s website.
STEP 9: After completing all the procedures of trade license registration, the unique number will be issued by the Municipal Corporation of Greater Mumbai (MCGM) for your use. https://www.mcgm.gov.in/irj/portal/anonymous/qlappTradelic
Conclusion
A Trade License is mandatory for the establishment and legal operation of a business in Mumbai. To obtain a trade license you have to visit the Municipal Corporation of Greater Mumbai (MCGM)’s official website after visiting the online portal or offline fill out the form and upload or attest all the required documents with the form and submit on the MCGM’s portal online or submit offline by visiting their office after that governmental officials will verify the documents and all the details after verification, they will issue a unique trade license ID. After all the procedure done the business can smoothly get and renew their trade licenses without any hassle and avoid legal penalties.
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