A trade license is a permit issued to a person who is opening a business to operate within the boundaries of a municipality or corporation. Upon receiving the license, the applicant is allowed to open and operate their business as described in their application. The applicant will need to submit separate applications if they wish to operate a business other than those listed in the trade license application. Furthermore, the applicant does not become the owner of the property once the license is obtained. Applicants for trade licenses must apply for licenses in order to be approved to conduct the business they mention in their application.
Why Trade License is important?
The government introduced business and trade licenses to regulate and oversee all activities conducted in a city or municipality. Business licenses facilitate the opening and operation of businesses within the specified localities. In addition to this, the government protects the country’s businesses from unethical practices and ensures that they have all been under government surveillance. In addition to specifying certain operating protocols and safety regulations, the license also protects the welfare of commercial establishments and their employees.
Provider of a Trade License
Municipal corporations are responsible for providing trade license. Companies have departments for different business categories, such as health, engineering, and industry.
Categories of trade license
Depending on the type of business or product provided by the business, there are three broad categories of trade license. Based on these differences, trade licenses can be classified into three broad categories:
Industrial License:
Licensing for industrial operations is granted to small, medium, and large companies involved in manufacturing, distribution, and other activities. The manufacturing of electronic, aerospace, and defense equipment requires an industrial license to start and function.
Shop License:
For shops that sell things that may cause injuries, such as firewood, fireworks, candles, barbershops, and dhobi shops, a license is required. A full-time employer, casual employee, or contract employee must be registered under the Shop and Establishments Act and obtain a shop license. Basically, this law aims at protecting workers’ rights and regulating their working conditions.
Food Establishment License:
A business that sells food items or provides related services must obtain a food establishment license. All establishments that sell food items, including restaurants, food stalls, canteens, butcher shops, vegetable and fruit stands, bakeries, cafes, and any other establishment that sells food, require a license. Any person selling food from the premises of their own home, even homemade food, is required to have a food license.