Trade license is an important document that allows you the right to operate your business in a particular municipal limit. The provision of a trade license is laid down by the State government to monitor and regulate various trade activities within a city.
entrepreneur with dreams of starting your business empire in the vibrant state of Rajasthan? Well, get ready for an exciting journey to success! But before you take the plunge, you have to take one crucial step: get a trade license. Beneath Rajasthan’s majestic heritage lies a dynamic system that promotes fair trade, protects the public interest, and paves the way for thriving businesses. The trade license is the golden key that opens the door to this realm of possibilities. It not only validates your business operations but also assures your customers, partners, and stakeholders that you are a responsible player in the game.
Trade License is known as “Shop and Establishment Registration” or “Trade License” in many states and “Gumasta License” in Maharashtra.
What is a Trade License?
The permission to operate a specific trade or business in a specific location is given by a trade license, which is a document or certificate presented to the applicant (a person who intends to start a business). It has ensured that all the safety regulations laid down by the state municipal corporation are followed while doing business or trading. It protects residents from health risks. However, the license only gives the holder the ability to carry out the company or activity for which it was issued. In addition, nothing in this authorization grants Licensee any type of property ownership.
The rules and regulations governing this registration of a trade license vary from state to state; for example, the procedures for registering a business license in Rajasthan will be different from registering a business license in Tamil Nadu. Therefore, before applying for a business license, the applicant must familiarize himself with the relevant laws in the jurisdiction.
An application for registration of a trade license in Rajasthan must be made within 30 days of incorporation. In most states, applications for new licenses and license renewals are accepted by the Commissioner of the Company.
Why trade licenses are important in Rajasthan?
- Legitimacy and Compliance: A trade license is a legal document issued by the municipal corporation, which grants authorization for a specific commercial activity. By obtaining a trade license, businesses in Rajasthan demonstrate their compliance with the applicable laws, regulations, and standards set by the government. It ensures that businesses operate within the framework of the law and contribute to a fair and transparent business environment.
- Health and Safety Measures: Trade licenses require businesses to adhere to specific health and safety standards set by the government. This ensures that businesses in Rajasthan maintain a clean and safe environment for employees, customers, and the general public. It helps prevent the spread of diseases, fire hazards, and other potential risks, thereby safeguarding the well-being of individuals associated with the business.
- Municipal Revenue Generation: Trade licenses contribute to the revenue generation of the municipal corporation. The fees collected through the issuance and renewal of trade licenses are utilized by the local authorities to develop and maintain public infrastructure, facilities, and services. This revenue helps in enhancing the overall business environment and promoting economic growth in Rajasthan.
- Consumer Protection: Trade licenses play a crucial role in protecting consumers’ interests. Before granting a trade license, the municipal authorities conduct inspections to ensure that businesses meet the required quality standards, maintain fair pricing practices, and provide genuine products or services. This helps in minimizing fraud, malpractices, and the sale of substandard goods, thereby enhancing consumer confidence and trust.
- Urban Planning and Regulation: Trade licenses enable effective urban planning and regulation. By having a record of licensed businesses, the authorities can monitor and manage the distribution and concentration of various commercial activities across different areas in Rajasthan. This helps in maintaining a balanced and sustainable urban development, avoiding overcrowding, and preventing unauthorized businesses from operating.
- Access to Financial Assistance and Incentives: In some cases, having a trade license is a prerequisite to accessing financial assistance, loans, and incentives provided by the government or financial institutions. By obtaining a trade license, businesses in Rajasthan become eligible for various schemes, subsidies, and support programs aimed at fostering entrepreneurship, business growth, and development.
Documents required to get a Trade License in Rajasthan
- License Application
- If the applicant is a legal entity, the relevant documents for company registration and the PAN card must be submitted
- Aadhaar Card
- Real estate tax documents
- The rental agreement or a copy of it should be offered
- Statements and Khata certificates in any form
- Occupancy Documents
- If the business is located in the neighborhood, a letter of objection from the neighbor is required
- Sanction Records.
Procedure for Obtaining a Trade License in Rajasthan
Access SmartRaj Website
Step 1: Applicants have to visit the official site of Rajasthan to apply for the trade license through the portal.
Step 2: After which, the applicant must click on the ‘Trade License Application/Pay’ option which will open up a new page.
Login to portal
Step 3: The applicant must log in with their username and password to operate the License applications received from the citizen.
Step 4: If a new user then registers yourself with the portal by clicking on the ‘Register Here’ option.
Apply Trade Application
Step 5: Then you need to click on the ‘Apply Trade Application’ option on the web portal.
Fill in the right credentials
Step 6: Then, the applicant has to complete all the requested details such as New traded license details, Applicant’s address details, other owner details, Type of license, etc. and click on the ‘Save’ details.
Upload Requested Documents
Step 7: Then you have to upload the below following documents that are mentioned above.
Pan card and Aadhar card
Lease Deed or Legal Occupancy Certificate
Address Proof ID
Receipt of UD Tax
Ownership Document.
Step 8: After uploading all the requested documents (scanned documents), click on the save button.
Generate Application Number
Step 9: After submitting the application form successfully, an automatic unique application number will be generated.
Type of License Fees
Step 10: Then you will be taken to the payment gateway where you need make the payment for registration of trade license.
Step 11: Next, you will be required to choose any one of these following options:
New License
Renewal License
Calculate Fees
Step 12: After you selected the option, you can calculate the amount by entering your License application number.
Step 13: Then click on the get amount option to know the fees that you need to pay.
Make the Payment
Step 14: You have to fill all the below following details to make the payment.
- UBL name
- Collection date
- Collection centre
- Payment mode
- Bank details
Step 15: You have to click on the ‘Pay Now’ button. Once the payment is made, your application process for trade license will be completed.
Application Procedure – Offline Method
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 mistakes. Provide the given following information in the application form.
- New traded 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 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 through online.
Renewal and Validity of Trade License in Rajasthan
Rajasthan trade license is valid till March 31 every year. When the license is about to expire, you can renew it by submitting an affidavit that the business owner will continue to operate it for the next year. The procedures are the same as when applying for a trade license.
FAQs
Are there any specific safety or hygiene standards that businesses must adhere to for obtaining a Trade License?
This question focuses on any specific standards or requirements related to safety and hygiene that businesses need to comply with.
Can a Trade License be transferred or modified in Rajasthan?
Individuals may inquire about the process of transferring or modifying an existing trade license.
What are the eligibility criteria for obtaining a Trade License in Rajasthan?
Individuals may be interested in understanding the qualifications or conditions that businesses must meet to be eligible for a trade license.
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