A trade license is a document/certificate that gives permission to the applicant (person seeking to open a business) to commence a particular trade or business in a particular area/location. It ensured that the business or trade is carried by adhering to all the standards of safety as issued by State Municipal Corporation . It protects the residents from being affected by any health hazards.

It has been made necessary by the government to carry out any particular business or trade in a particular area and to ensure that no one is carrying out any unethical business practices. This license creates a harmony in the society that every business is following relevant rules, guidelines and obeying the safety measures. This license was made obligatory to make sure that the government can regulate various trade activities in the country.

The government of India authorizes the license in a manner to regulate in cities across the country. It grants permission by the way of letters or documents/certificates to carry on any business or trade where it is located. The issuance of the license varies from state to state depending on the local government agencies (Municipals) rule and regulations. The following are the forms that must be sent for license renewal– a. An original copy of the trade license; b. Previous year challans; and c. A receipt for the most recent property tax payment.