Last updated: December 19th, 2019 5:06 PM

Jharkhand Municipal Trade License

Trade license is a necessary document for any individual or a company to carry on a trade or business within a Corporation or Municipal limit. Trade license is a permit to start a business, and the Government issues the permit to regulate different trade activities in the country. The process of obtaining a trade license varies from state to state. In this article, we look at the procedure of obtaining Jharkhand Municipal trade license in detail.

Trade License Aspects

• 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 carry on any other trade or business other than for the issued purpose.

Purpose of Trade License

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

Conditions to Acquire Trade License:

1. Any resident of Jharkhand who is of 18 ages or above can apply for a trade license.
2. The applicant should not have any criminal records against them.
3. The business should have a legal permit.
4. This trade license should be obtained at least 30 days before the initiation of the business.

Jharkhand Municipal Act 2011

The Jharkhand Municipal Act 2011, drafts the rules and regulation that governs the issue, control and regulation of license for all the trades within the urban areas of Jharkhand. Section 455 of the Jharkhand Municipal Act, 2011 displays the list of trades and other activities for which the license will be issued. The Urban and the Housing Department of Jharkhand is responsible for making the rules and regulations for the issue, control and renewal of the license under this act.

Competent Authority

The Municipal Commissioner / Executive Officer / Special Officer will be the competent authority for the Jharkhand Municipal Trade License to whom the owner or occupier of the business premises should apply for every place for which the license is required under the Act.

Documents Required for Jharkhand Municipal Trade License

The documents to be enclosed while applying for a new Jharkhand Municipal Trade License are listed below.

1. Identity proof of trade owner
2. Up-to-date holding tax receipt
3. If the trader applicant is the owner of business premises:

• Land possession certificate/ allotment order/ revenue rent/ sale deed/ correction slip updated holding tax.

4. If the applicant has no land/ building of his/her own:

• Deed of land lease agreement/ rent agreement/ electricity bill (in the name of the applicant) / affidavit (attested by a notary public)

5. If the business requires License/ NOC/ clearance from the appropriate agency

• License/ NOC/ Clearance from the respective department and Affidavit (Appendix 4)

6. If partnership Firm

• Deed of Agreement

7. If the business is a private limited or a limited company

• Registration Certificate incorporating under the Companies Act 1956

8. In case of hotel, lodge or restaurant business
   • Report on security system from recognized department/Institute/Agency
   • Report on drinking water from recognized department/Institute/Agency
   • Fitness certificate of cook
9. If trade is of dangerous nature

• NOC from the officer of District Fire Service

For Renewal of License

1. Current year holding tax receipt of business premises
2. Copy of previous municipal trade license

For Amendment of License

1. Previous Municipal Trade License
2. An affidavit on Rs. 10/- Non-Judicial stamp paper to the effect that an amendment has been made.

For surrender of license

1. Previous Municipal Trade License
2. An affidavit on Rs. 10/- Non-Judicial Stamp paper to the effect that Municipal Trade License is being surrendered.

For Duplicate Copy of License:

1. Current year holding tax receipt of business premises
2. Copy of FIR in case of license is lost/ misplaced
3. Photocopy of previous license if available
4. An affidavit on Rs. 10/- Non-Judicial Stamp paper stating that lost license will be returned to the respective Municipal Corporation and not be misused if traced.

Fees

For New License

The fee to issue the municipal trade license in urban local bodies is levied according to built-up area of the premises. The fee structure for the issuance of license under section 154 & 155 of the Jharkhand Municipality Act 2011 is provided below.

Sl. no.	Built-up area (in sq. ft.)	Rate Per Annum  (Rs)
1	Up to 100	300
2	101 to 500	500
3	501 to 1000	1,500
4	Above 1000	2,500

 

For Renewal of License:

As per the Jharkhand Municipality Act 2011, the fee structure for the renewal of the municipal trade license in urban local bodies is same as for issuing a new license. However, the Urban Development and Housing Department may revise the fees, which will be done only in beginning of the financial year if necessary. For Amendment of License: The fee for the amendment of the municipal trade license in urban local bodies is levied according to built-up area of the premises. The fee structure for the amendment of municipal trade license is provided below.

Sl. no.	Built-up area (in sq. ft.)	Rate Per Annum  (Rs)
1	Up to 100	150
2	101 to 500	250
3	501 to 1000	750
4	Above 1000	1250

Validity

The validity of the trade license is for one year from the date of issuance after which it should be renewed every year.

Processing Time

The time taken to process the application for Jharkhand Municipal Trade License is 22 working days from the date of application after which the competent authority will intimate the approval or refusal of the application to the applicant. In case of non- disposal of the application, it is considered to be approved.

Application Procedure for Jharkhand Municipal Trade License

The applicant has to submit the application for Jharkhand Municipal Trade License in Form A to urban local body within the limits of which the business unit runs or is set up and pay applicable fee for the municipal trade license. A copy of Form A for the Jharkhand Municipal Trade License is provided below. The copy of affidavit to be attached with the application form is given below. The application will undergo four tire verifications.

• Primary verification by Dealing Assistant
• Secondary verification by Section Head
• Site Inspection by Tax Daroga
• Approval / Refusal of application by the competent authority

If the forms are not filled properly or if the documents are not in order, the authority will disapprove the application.

Online Process

Step 1: To apply online for the license, visit the official website of Jharkhand Municipal. Step 2: The home page of the portal appears. Click Municipal License. Jharkhand Municipal Trade License - Home Page Step 3: Select the Urban Local Body from the drop-down list to which the trade license is applied. Step 4: Click on ‘Apply for New License’ for new license. Step 5: Fill the form that includes the following details.

• Application Type & Types of Business Structure
• Applicant Details
• Details of Business
• Business Premises Area Details
• Electricity Connection Details
• Declaration

Jharkhand Municipal Trade License - New License Application Step 6: Click 'Save' button to save the application details. Step 7: Upload all required documents prescribed for New License. Step 8: Verify your mobile number using OTP sent in your registered mobile number and enter the captcha cod. Step 9: Click on 'Submit' button to apply. Step 10: For payment, choose the payment mode as 'online' or 'offline'. In offline mode, you have to generate the challan by clicking 'Generate Challan' button and pay the generated fee in the nearby Jan Suvidha Kendra.

For License Renewal

Step 1: To renew the license, visit the official website of Jharkhand Municipal. Step 2: Click on ‘Apply for Renewal License’. Step 3: Enter the License number and click ‘search’. Jharkhand Municipal Trade License -License Renewal Step 4: Provide essential details for the renewal of license and click submit to apply.

For Amendment License:

Any license issued under the Jharkhand Municipal Act 2011 will remain in force till its validity period. The licensee may apply for license amendment in the following cases.

• If there is any change in the trade
• If he/she is changing the trade within the same premises
• If the covered area of the trade is being increased or decreased

The renewed license will be issued after depositing the relevant fee and required documents mentioned. In addition, issuance of new municipal trade license for the same premises requires surrendering the existing license. Step 1: To apply for the license amendment, visit the official website of Jharkhand Municipal. Step 2: Click on ‘Apply for Amendment License’. Step 3: Enter the License number and click ‘search’. Jharkhand Municipal Trade License - Ammendment License Step 4: Provide essential details for the amendment of license and click submit to apply.

For Surrender of License

The licensee may surrender its municipal trade license at any time within its validity period. Surrendering the municipal trade license does not include any fees. Step 1: To surrender the license, visit the official website of Jharkhand Municipal. Step 2: Click on ‘Apply for Surrender License’. Step 3: Enter the License number and click ‘search’. Jharkhand Municipal Trade License -Surrender License Step 4: Provide essential details for surrender license and click submit to apply. To apply at Jan Suvidha Kendra: Step 1: Visit the nearby Jan Suvidha Kendra. Collect the New/Renewal/Amendment/Surrender License form. Step 2: Fill the form and submit it to the authorized Jan Suvidha Kendra operator. Submit all required documents and fee to the same. Step 3: You can check the application status online through 'Track Your Status' option in the official portal.

Track Your Status:

Step 1: To track the status of the application, visit the official website of Jharkhand Municipal. Step 2: Click on ‘Track your Status’. Step 3: Enter the application number and click ‘search’ to check the status of the application. Jharkhand Municipal Trade License -Track Status

Duplicate License

The applicant trader can apply for a duplicate license on payment of Rs. 100/-.The authorized official may issue the duplicate municipal trade license with the word “Duplicate” appearing therein.

Cancellation of License

The license granted under the provision of the Act will be cancelled on the following cases.

• If the licensee fails to abide by the conditions laid down in the license
• If the premises of the business unit has been shifted without approval of the concerned authority
• If the information submitted has been proved to be a misrepresentation of fact or mistake.
• If the license has been sublet
• If the business is carried out in an unapproved building