What is a trade licence
A trade licence is permission from the local municipal authority to carry on a specific trade or business at a particular location. It ensures that businesses operate in approved areas and follow local safety and public-health norms.
It is a local, city-level requirement, so the exact process varies by municipality.
Who needs a trade licence
Most shops, restaurants, offices and commercial establishments need a trade licence to operate legally. Food establishments, in particular, are closely regulated. If you are opening a physical place of business, you should check whether your municipality requires one — in most cases it does.
Trade licence vs Shop and Establishment registration
These two are often confused. A trade licence permits a specific trade at a location, while Shop and Establishment registration relates to regulating working conditions and employment. Many businesses need both, and they are issued under different rules.
Documents commonly required
- Identity and address proof of the owner
- Business address proof or rent agreement
- No-objection certificate from the property owner
- Property tax receipt where applicable
- Photographs and business details
- Incorporation or partnership documents
Application and renewal
The application is filed with the municipal authority along with the documents. After verification, the licence is issued. Trade licences usually require periodic renewal, often annually, so tracking renewal dates is important to avoid penalties.
How Aidwish helps
Aidwish checks what your city requires, prepares the paperwork, files with the municipality and tracks renewals — and can handle related registrations like Shop and Establishment at the same time.