A trade license is a document/certificate that permits the applicant (person seeking to open a business) to commence a particular trade or business in a particular area/location. However, the license does not allow the holder to any other trade or business than for it is issued. Furthermore, this license does not pass on any kind of property ownership to the holder of the license.
It is issued by the licensing department of the municipal corporation in various departments like industries, engineering, health, etc.
The government of India authorizes the license in a manner to regulate in cities across the country. It grants permission by the way of letters or documents/certificates to carry on any business or trade where it is located. The issuance of the license varies from state to state depending on the local government agencies' (Municipals) rules and regulations.
Industries license : small, medium and large scale manufacturing factories
Shop license : Dangerous and Offensive trades like a sale of firewood, cracker manufacturer, candle manufacturer, barbershop, dhobi shop, etc.
Food establishment license : Restaurants, hotels, food stall, canteen, the sale of meat & vegetables, bakeries, etc.
The applicant must have crossed the age of 18 years
The applicant must not have any criminal records Businesses must be legally permissible.