A trade license is a certificate or document that authorizes a corporation to conduct business or trade within the municipal limits for which it was issued. The Municipal Corporation of Delhi (MCD) issues Trade Licenses to traders and companies in Delhi in order to monitor and control the city’s numerous trade activities. The purpose, procedure, and paperwork needed to obtain a Delhi trade license are discussed in this article.
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The Shop and Establishment Act establishes the following rules, which are used to issue a Delhi trade license. Within 30 days after the start of work, every establishment/shop must be registered under this Act. The Indian Shops and Establishments Act governs the following aspects of business:
A trade license is required for any commercial establishments that fall into the following categories:
The government has made it obligatory to obtain a trade license in order to verify that one is not engaging in unethical business operations and is adhering to all applicable rules, safety measures, and guidelines. The owners of a licensed firm are protected from some sort of liabilities. Personal funds would not be at risk in any settlement if damage or injury occurred as a result of corporate acts or doings. Different types of trade licenses provide varying levels of protection.
At the time of completing the application form for a Delhi trade license, the following information or documents/records must be provided.
The application will be processed for Rs. 500/-, which includes handling charges of Rs. 50/- as well as service charges. The annual license fees will vary depending on the type of business. The following is a list of the trade license fees that must be paid:
| Category | Area of the Establishment | Fee/Charges |
| Category A | Conforming Area / Local Commercial Area
| (i) Rs. 200/ P.A. up to 10 sq. Meter. (ii) Rs.500/-P.A between 10 Sq. Meter to 20 Sq. Meter. (iii) Rs. 50per Sq. Meter P.A above 20 Sq. Meter. |
| Category B | Non-Conforming Area / Household | (i) Rs. 200/ P.A. up to 10 sq. Meter. (ii) Rs. 500/-P.A between 10 Sq. Meter to 20 Sq. Meter. (iii) Rs. 50per Sq. Meter P.A above 20 Sq. Meter. |
To apply for a trade license, applicants must complete the following procedures and submit the application form online.
Step 1: Applicants must go to the MCD’s official website (Municipal Cooperation of Delhi).
Step 2: Choose either North DMC, South DMC, or East DMC as your region.
Apply for Trade/ Storage License
Step 3: On the home page, click the “Trade/ Storage License” tab.
Step 4: Next, click on ‘Application for New License,’ which will take you to the application page for a new trade license.
The following is the link to the application form for a Trade/Storage License:
Step 5: The applicant must then fill out all of the requested information, such as New trade license information, Applicant’s address information, other owner information, Type of license, Business information, NOC from a fire department, Fee information, Property Tax information, and so on, before clicking the ‘Submit’ icon.
Step 6: Fill out the rest of the application form and upload the required/mandatory documents before submitting it.
Step 7: Click the Submit icon after you’ve uploaded all of the requested documents (scanned documents).
Step 8: The documents will be verified by ULB staff after the application has been submitted.
Step 9: After successfully submitting the application form, a unique application number will be generated automatically.
Step 10: The authorized official will compute and generate the fee-seeking requisite payment from the applicant for issuing the License once the application has been scrutinized.
Step 11: The applicant will be alerted by SMS or email to make the required payment at the registered mobile number and email address.
Step 12: To make a payment, you must complete all of the following information.
Step 13: After that, you must fill out all of the payment information provided.
Step 14: Then, to make an online payment, click the “Make Payment” icon. As an acknowledgment slip for the amount paid, a receipt will be generated.
The appropriate authority will check and issue the Trade license once the payment has been received.
To apply for a trade license in Delhi, candidates must complete the following procedures and submit the application form online.
Step 1: The applicant must first go to the licensing department, which is located within a specific municipal limit.
Step 2: The applicant must submit an application for a trading license to the executive.
Note: You may also obtain the trade license application form from the MCD (Municipal Cooperation of Delhi) official web domain. The License application form is reproduced here for your convenience.
Step 3: Complete the application form completely and accurately without making any mistakes. Fill out the application form with the following information.
Step 4: You must submit an application form in the appropriate format, along with all supporting documentation, to the concerned operator.
Step 5: After submitting an application, the applicant must attach the required papers to the application form. Then pay the registration fees as instructed.
Step 6: After submitting the form, the user will receive a transaction number to the registered cellphone number, which will contain information about the registration’s success. To check the status of the application online, the application must make a note of the transaction ID.
From the date of issue, the Trade License Certificate would be valid for three years. As a result, it must be renewed every three years by paying a license cost for that time period.
Go to the MCD’s official online portal website to check the status of your application. You must click on the Application Status link on the website. To check the status of your application, enter your application number and click the Submit button.
Applicants can apply for a trade license renewal by selecting the Renew License link from the official site and clicking on the ‘Renewal’ link. Your application for a trade license will be complete once you have paid for the renewal.
You will receive a notification on your registered mobile number once your application has been approved. The data of the trade license will be updated in the applicable state’s records site. Enter the Certificate number as well as the application number into the official portal. Then press the “Submit” button. Finally, you can obtain a copy of the certificate of trading license.
Read, also: Why is having a Trade License Important?
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