Gujarat Trade License

Trade license is a government issued document that permits any individual or a company to carry on a trade or business within a Corporation or Municipal limit. The government has made trade license compulsory for those seeking to start a business and to regulate various trade activities in the country. The process of obtaining trade license differs from state to state. In this article, we look at the procedure of obtaining Gujarat trade license in detail.

Gujarat Municipal Corporation Act, 2003

According to the Gujarat Municipal Corporation Act, any person who enters a business or any other trades such as industries or factories in Gujarat have to get prior permission from the respective authority before the initiation of the business.

Aspects of Trade License

Commencement of new business requires the individual or the company to register it with the local government. However, obtaining a trade license is different from business registration. Trade license is a permission to start a business.
The state Government regulates the issuance of trade license through the municipal acts.
The business should comply with the rules and regulations set down by the corporation and safety authorities of the State to get the license.
Trade license does not guarantee any kind of property ownership to the license holder.
The license does not let the holder to carry on any other trade or business other than for the issued purpose.

Purpose of Trade License

The main objective of the government issuing the trade license is to ensure that no one is conducting any unethical business practices or any illegal trade. Moreover, it is mandatory for a person or a company to procure a license to avoid heavy penalty as any business without a trade license will be considered illegal.

Conditions

Any resident of Gujarat who is 18 years of age or above can apply for a trade license.
The applicant should not have any criminal records against them.
The business should have a legal permit.
This trade license should be obtained within 30 days of the initiation of the business.
Those who seek to set up a small, medium or large-scale manufacturing industry or factory should acquire industrial trade license.
Retail shops or commercial establishments should get shop license.
Establishments like restaurants, canteens, food stall should obtain food establishment license.

Documents Required

The documents to be attached along with the application form are provided below.

Statement of the capital proposed on the business.
If the applicant is a corporate body;-

A copy of the Memorandum of Association and articles of the company
Details of any company engaged in the business whether within the State of Gujarat or in any other State

In case of other business entities - registration or agreement
An affidavit verifying the information disclosed in the application
For premises of commercial building - Office Rental agreement, Occupation Certificate
NOC from Fire Department
Actual Turnover of last three financial years
Registration Certificate
ID proof of the applicant.

Concerned Authority

The Municipal Commissioner or Additional Commissioner or Deputy Commissioner acts as an administrative head and is authorized to approve a trade licenses certificates. In case of rejection of the certificate, the first appellate officer is either the project officer or the sub-divisional officer of the Urban Local Bodies. The second appellate officer is the divisional officer of the respective Urban Local Bodies of the establishment.

Validity of the Gujarat Trade License

The validity of the license commences from the date mentioned on the license by the commission. Gujarat Trade License is valid for a period of twenty-five years or a period directed by the commission, unless it is suspended or revoked as per the provisions of the Act.

Processing Time

The applicant will be issued the license within 30 days of the application.

Fees

The commission revises the fee frequently, which the applicant has to pay for every subsequent year the license is in force. Failing to pay will attract an interest on the outstanding amount at bank rate.

Application Process

To applying for the Gujarat Trade license, the applicant should approach the respective municipal corporation where the factory, industry, workplace, business, or service is intended to be established. The applicant has to submit an application in the prescribed format along with documents prescribed for Gujarat Trade license at the Municipal Corporation. Once the application has been submitted, an acknowledgement slip with the application number will be issued from the office. The applicant will be notified and called for inspection of application and documents. On scrutiny of the application, if the Secretary finds the application and documents to be complete, either approves or objects with suggestions. The respective Municipal corporation office will grant the Gujarat trade license once the secretary approves the request and fee has been paid. On providing the application number, the applicant can obtain the Trade License.