To carry on the business or trade activities in a particular municipal limit a certificate is issued by the Municipal Corporation of Delhi (MCD) to traders and establishments to monitor and regulate the various trade activities at the city level. Trade license is a certificate/ document that permits a company In this article, we look at the purpose, procedure, and the documents required for obtaining Delhi trade license.
To engage in commercial or trade activities within a specific municipal limit, businesses and establishments are required to obtain a trade license issued by the Municipal Corporation of Delhi (MCD). This regulatory measure is implemented to effectively monitor and regulate various trade activities at the city level, ensuring compliance with established norms and standards. In this detailed exploration, we will delve into the purpose, procedural aspects, and the essential documentation required for obtaining a trade license in Delhi.
Regulation of Trade Activities:
The license enables the Municipal Corporation of Delhi to regulate and monitor diverse trade activities to ensure they align with city-level guidelines.
Compliance with Standards:
Businesses are required to adhere to specific standards and regulations to obtain and retain the trade license, promoting overall compliance.
Public Health and Safety:
The license issuance involves an assessment of the premises to ensure adherence to health and safety standards, contributing to the overall well-being of the public.
Revenue Generation:
The trade license serves as a source of revenue for the municipal corporation, contributing to the development and maintenance of civic amenities.
Businesses Requiring Trade License
All Businesses/commercial establishment that falls under the following categories must obtain trade license:
- All kinds of shops and offices like saloons, ration shop, Electronics shop, Wholesale FMCG Godowns, Machine repairing shops, Printing press and Furniture Shop.
Note – All those shops dealing in goods or services related to human heath needs to be apply Health Trade License. To view details of Health trade license Click Here
Shops & Establishment Act, 1954
Delhi trade license is issued based on Regulations under the Shop and Establishment Act . It is mandatory for every establishment or shop to undergo registration within 30 days of initiating operations under this Act. The Shops and Establishments Act governs various guidelines of conducting business in India.
- The working hours in the shop/commercial establishment, on a daily and weekly basis.
- The obligations and duties that employers and employees owe to one another, as well as to the company and society at large.
- Regulation of employment norms for children, women and young persons, .
- Rules and regulations concerning paid leaves.
- Provisions for spread-over, national and religious holidays, rest interval, opening, and closing hours closed days, overtime work.
- Rules and conditions for termination of service and employment.
- Precautions against fire, accidents, etc.
- Regulations concerning the preservation of records and registers.
- Regulations concerning the display of notices.
To view Shop License details. Click here
Requirement to Obtain Trade License
The government has made it necessary to obtain trade license to assure that the person is not carrying out unethical business practices and is following the guidelines ,relevant rules and safety measures.
Having a valid business license provides protection to the owners by limiting certain types of liability. If damage or injury occurs the business actions or doings, the personal finances would not be stick in any settlement.
Procedure for Obtaining Delhi Trade License:
The process of obtaining a trade license in Delhi involves several steps, ensuring that businesses fulfill the necessary requirements:
Application Submission:
Businesses must submit a comprehensive application form, providing details about the nature of their trade, business activities, and the specific premises.
Document Verification:
The submitted documents, including proof of identity, address, and business ownership, are thoroughly verified by the concerned authorities.
Site Inspection:
A site inspection may be conducted to assess the suitability of the premises for the proposed trade and to ensure compliance with health and safety standards.
Fee Payment:
Upon successful verification and inspection, the applicant is required to pay the prescribed fees for obtaining the trade license.
License Issuance:
Once all requirements are met, and fees are paid, the Municipal Corporation of Delhi issues the trade license, enabling the business to commence its operations legally.
Documents required for the renewal of trade license in Delhi:
- Old G-8 receipt.
- Address Proof and Identity Proof.
- Application for renewal of a license.
- Original License copy.
Documents required for the issue of duplicate trade license in Delhi :
- First Information Report (FIR)
- Indemnity Bond in prescribed format.
Why Do TRADE LICENSE is required in Delhi?
The trade license is an tool that helps a regulating authority in ensuring that the mode and locality in which the business is being operated is in accordance with the relevant regulations, standards, rules, and safety guidelines prescribed by the government of the state.
A Trade license is a permission that is granted by the municipal corporation of the state to execute a specific trade or business at the establishment for which license for sought. Any illegal/unlawful running of trade/business is a breach of the law which may result in a serious penalty.
The primary purpose of the Delhi trade license is to streamline and oversee business operations within the municipal limits of the city. By obtaining this certificate, businesses contribute to maintaining a structured and lawful commercial environment.
The provision of trade license is separately laid down by the respective State government to track and observe the trade within a city. It is awarded/issued by the municipal corporation of the state where business is located.
The issued license must undergo an annual renewal process.
To avoid any inconvenience business owners must make an application for trade license without any delay. An application must be submitted before commencing any business activity, on portal provided by Municipal Corporation of Delhi viz. www.mcdonline.gov.in.