Trade license is a certificate/ document that permits a company to carry on the business or trade activities in a particular municipal limit for which it is issued. In Delhi, Trade License is issued by the Municipal Corporation of Delhi (MCD) to traders and establishments to monitor and regulate the various trade activities at the city level.
Delhi Shops & Establishment Act, 1954
Regulations under the Shop and Establishment Act lays down the following rules based on which the Delhi trade license is issued. Every establishment/shop must compulsorily be registered under this Act within 30 days of commencement of work. Shops and Establishments Act regulates the following aspects of doing business in India:
- The working hours on a daily and weekly basis.
- Provisions for spread-over, rest interval, opening, and closing hours closed days, national and religious holidays, overtime work.
- Regulation of employment norms for children, young persons, and women.
- Rules and regulations concerning paid leaves.
- Rules and conditions for employment and termination of service.
- Regulations concerning the maintenance of records and registers.
- Obligations of employers as well as employees.
- Precautions against fire, accidents, etc.
- Regulations concerning the display of notices.
- The responsibility of the employer and employee towards each other, the firm and the society.
Businesses Requiring Trade License
ll commercial establishment that falls under the following categories must obtain trade license:
- An establishment or administrative service in which persons employed or mainly engaged in office work.
- A hotel, restaurant, boarding or eating house, a cafe or any other refreshment house.
- A theatre, cinema or any other place of public amusement or entertainment.
Requirement to Obtain Trade License
The government has made it necessary for one to obtain trade license to ensure that the person is not carrying out unethical business practices and is following the relevant rules, safety measures and guidelines. A licensed business protects its owners against certain types of liability. If damage or injury occurs the business actions or doings, the personal finances would not be at stake in any settlement. The various types of trade licenses offer different levels of protection.
List of Required Documents
The following information or documents/records are to be furnished at the time of submitting the application form for obtaining Delhi trade license.
- Address Proof and Identity Proof – Individual.
- Affidavit
- Certificate of Incorporation, MOA and AOA of the company.
- Cancelled Cheque and Bank Statement.
- Certificate of Incorporation, MOA and AOA of the company.
- Legal Occupancy document proof of the establishment/unit or allotment letter of the government agency.
- Documentary proof of establishment of trade.
- Lease Deed of the constitution.
- Documentary proof regarding the non-existence of unauthorised construction.
- NOC (No Objection Certificate) from the land-owning agency.
Documents required for the renewal of a trade license:
- Address Proof and Identity Proof
- Original License copy
- Old G-8 receipt
- Application for renewal of a license
Documents required for the issue of a duplicate trade license:
- First Information Report (FIR)
- Indemnity Bond in prescribed format.
Registration/ Processing Fee
The processing fees for the application will be charged Rs. 500/-, that includes the handling charges of Rs. 50/- plus service charges. The Annual License Charges will depend on the trade type. The trade license fee at the following rates to be paid is tabulated below:
| 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. |
Application Procedure for Trade License – Online Method
Visit the MCD portal
Step 1: Applicants have to visit the official portal of MCD (Municipal Cooperation of Delhi).
Step 2: Now you have to select your region among North DMC, South DMC, or East DMC.
Apply for Trade/ Storage License
Step 3: Click on “Trade/ Storage License” tab visible on the home page.
Step 4: Then you have to click on the ‘Application for New License’ where you will be directed to the new trade license application page.
Fill in the right credentials
Step 5: Then, the applicant has to complete all the requested details such as New trade license details, Applicant’s address details, other owner details, Type of license, Business details, NOC from a fire department, Fee details, Property Tax details etc. and click on the ‘Submit’ icon.
Upload Requested Documents
Step 6: Fill in the details further in the application form and upload the requisite/mandatory documents and submit the application.
Step 7: After uploading all the requested documents (scanned documents), click on the Submit icon.
Verification of Documents
Step 8: Once the application is submitted, verification of the documents will be done by the ULB officials.
Generate Application Number
Step 9: After submitting the application form successfully, an automatic unique application number will be generated.
Make Payment
Step 10: Once the application is scrutinised, the authorised official will calculate and generate the fee-seeking requisite payment from the applicant for issuing the License.
Step 11: The applicant will be notified via SMS or email on the registered mobile number and email address for making the requisite payment.
tep 12: You have to fill all the following details to make the payment.
- UBL name
- Collection date
- Collection centre
- Payment mode
- Bank details
Step 13: Then, you have to fill out all the requested payment details.
Step 14: Then, click on the “Make Payment” icon to make the payment online. A receipt will be generated as an acknowledgement slip for the amount made.
Once the payment is received, the competent authority shall verify and issue the Trade license.
Application Procedure for Trade License – Offline Procedure
Approach the Municipal Cooperation
Step 1: Firstly, the applicant has to visit the licensing department ranging from a particular municipal limit.
Step 2: The applicant has to make a request with the executive for applying for a trade license.
Fill out the right credentials
Step 3: You have to fill the application form with appropriate details without any errors. Provide the given following information in the application form.
- New trade license details
- Applicant’s address details
- Alternate owner details
- Type of license
Step 4: You have to submit an application form in the prescribed format to the concerned operator along with all the supporting documents.
Attach Required Documents
Step 5: After applying, the applicant has to attach the specified documents along with the application form. Then make the prescribed fees for the registration.
Step 6: Upon submission, the user will receive a transaction number to the registered mobile number informing the details about the successful registration. The application has to make a note on transaction ID to check the status of the application online.
Validity Period of Trade License
Trade License Certificate would be valid for three years from the date of issue. Hence, it has to be renewed after three years by payment of license fee for such period.
Check Status
To know the status of your application, go to the official web portal website of MCD. You have to select the Application Status link available on the site. Enter your application number and click on the Submit button to view the current status of your application.
FAQs
What is a trade license?
A trade license is a permit issued by the municipal corporation or local authority that allows a business to operate within a specific jurisdiction. It ensures that the business complies with the rules and regulations laid down by the government.
Who needs a trade license in Delhi?
Any individual, partnership firm, company, or organization carrying out a trade or business activity within the jurisdiction of the Municipal Corporation of Delhi (MCD) or the local authority is required to obtain a trade license.
What types of businesses require a trade license in Delhi?
Most businesses operating within Delhi, including shops, hotels, restaurants, food establishments, factories, small industries, commercial establishments, etc., require a trade license.
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