Andhra Pradesh Trade License

Andhra Pradesh trade license is a document of authorisation issued by the State Government for granting permission to regulate and carry out any forms of business in a particular locality. The Industrial and Trade Acts mandates trade license to ensure that a business complies with the stipulated rules and safety guidelines. Further, the Government of Andhra Pradesh issues trade license to ensure that the citizens are not adversely affected by any health hazard and nuisance by the improper carrying of trades. In this article, we look at the procedure for obtaining Andhra Pradesh trade license in detail. In case you require any assistance for obtaining trade license in Andhra Pradesh, get in touch with the IndiaFilings advisor at sales@indiafilings.com.

Industrial and Trade Acts, 1926

According to Industrial and Trade Acts, any person who enters a trade or any other business such as industries, factories or workplaces in the state has to get prior permission from the concerned authority in advance before the commencement of the activity.

Importance of Trade License

The objective of the Andhra Pradesh trade license is to control business location by way of putting constraints on peoples from running certain types of businesses from their home, to maintain a separate business environment and preserves locality environment.

Trade license is enacted to ensure that no business person is running any unethical business practices and there is no severally affected by health hazard and nuisance.
Obtaining Andhra Pradesh trade license ensures that the safety measures and guidelines are followed.
Andhra Pradesh trade license protects the owners against certain types of liability.

Eligibility Criteria for Andhra Pradesh Trade License

The business owners engaged in a general trading activity within the territorial limit of any municipal corporation is required to get a trade license. The class of trade license differs, and it is based on the nature of the business.

Every person intending to construct any factory, workshop or workplace in which it is proposed to employ steam power, water power or other mechanical power or electrical power have to apply for a trade license.
A person intending to establish a factory which does not use power also needs to obtain a trade license.
For running food establishments such as hotels, eating houses, restaurants, coffee houses, laundries, travel agencies or barber saloon, Andhra Pradesh Trade license is required.

Note: Any unauthorised running of trade is an offence which may result in a substantial penalty and subsequent prosecution.

D&O Trade Licenses

The applicants who wish to start a new trade which involves dealing with dangerous and Offensive substances or material and any such machinery as defined in the rules and regulations of Industrial and Trade Acts have to apply for D&O trade licenses at the respective Urban Local Bodies. The Health and Revenue section of the ULB deal with the issue of licenses and the following are the key processes which are involved in the issue of trade licenses.

Licensing Authority

The Health and Revenue section of the respective Urban Local Bodies deals with the issue of AP trade licenses. The Chief Medical Officer of Health at Head Office and Assistant Medical Officers of Health, Zone No. I to VI and Medical Officer of Health, Visakhapatnam are vested with the power to issue Andhra Pradesh trade licenses.

Validity

Andhra Pradesh trade license is valid for one year from the date of its issue. The official year for D&O Trade licenses in Andhra Pradesh is from April 1st to March 31st.