A License issued or permission granted by the municipal corporation permitting to carry on a pa...
Trade License is a permission granted by the state government to carry on any business or trade for which it is issued. It is governed by the respective state laws under the Municipal Corporation. It is enacted to ensure that no person is running any unethical business practices. The licenses are issued by the authorized departments of the municipal corporations. Operating a business without an Obtaining trade license may result in a penalty or even closure of a business.
The trade that one is not carrying out any unethical business practices and is following relevant rules, safety measures and guidelines. A trade license gives you a right to operate your business in a particular area. We can say that Trade license is the same as a Driving license which requires when one needs to drive a car. If a person has not got the license and still operating his business than it will cause a penalty and fine from the government department.
Mainly these three types of business require a Trade License
The main motive of Trade license is to restrict the people to control business location from doing any kind of business activity from the residential areas. It maintains the business environment and avoids hurdles and nuisance to the persons residing in the society. Trade License can only be obtained at commercial premises where the government has not restricted to doing any trade activity. In some industries which are into hazardous activity, the government has framed various safety guidelines to operate such industries only in some specific zones which are at the particular distance from the city.