Trade License Service in Kolkata- Overview
Trade License is a business license or permit issued by a Local Authority or Municipality Corporation to operate a specific trade in a particular location. Hence it is necessary for any business unit to register for a trade license from the License Department of either Local Authority or Municipality Corporation before initiating any business operation or activity. These licenses are used across different states and must be obtained from the respective State government for the operation of the trade. In this blog, we shall look at the procedure for obtaining Kolkata Municipal Trade License.
As per Section 199 of the Kolkata Municipal Corporation Act 1980, "Every person engaged in any profession, trade or calling in Kolkata as mentioned in Schedule IV, either by himself or by an agent or representative, shall obtain a certificate of enlistment or get the same renewed annually from the Municipal Commissioner upon presentation of an application in such form as may be specified by the Municipal Commissioner together".
According to Section 199 of the Kolkata Municipal Corporation Act 1980, the licensing department of KMC issues the Certificate of Enlistment. As per the rules and regulations prescribed by the Municipal Corporation of Kolkata, it is mandatory to obtain a KMC Trade License or Certificate of Enlistment for carrying out any trade or profession in the locality falling under the purview of Kolkata Municipal Corporation trade licence. Any businessman or a professional engaged in trade or profession in Kolkata, West Bengal, then he is obligated to obtain a certificate of enlistment i.e. Trade license online.
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- Applicants should be above 18 years of age.
- Should be doing a business activity that is legally permissible.
- Should not have any criminal records.
1. Raise Credibility
We know that a trade license is mandatory for all businesses generating revenue through their product and services. Such a license gives an assurance to the customers that the organization is abiding by the laws and is practising proper business ethics. This increases the credibility and visibility of the business entity which attracts the trust of consumers.
2. Better exposure to financial support
The trade license ensures better exposure to secure funds from financial institutions, banks etc without many constraints. A trade license can act as a substantial gateway that ensures the seamless inflow of financial aid which promotes the growth and development of the enterprise.
3. Enhance Goodwill in the market
Acquiring a trade license increases the goodwill of the business entity as people will recognise it as a law-abiding business unit. This implies that the business or person having a trade license has permission from the authority to carry on such trade or profession. This will enable them to achieve the trust of customers. This would further help them secure a firm foothold in the market in the long run.
4. Further investments
Authenticity and credibility are very vital for any business. By acquiring a trade license, a business can secure significant investments from outside entities for additional funds to reap fiscal benefits.
5. Ensure less confrontation with legal affairs
Business entities that ensure 100% conformity with compliances are less likely to face any troubles in terms of compliance adherence. Bur for those businesses not having a trade license can end up paying fine or even closing down of the business.
6. Encourages ethical practices
Every business that holds a trade license is under the obligation to apply ethical business practices. The organization that indulges in unfair practices such as exploitation of workers, avoiding tax liabilities, generating misleading invoices, and causing any sort of environmental pollution like disposing of waste in water, the release of pollutants air, is more likely to get penalized by the concerned authorities.
The documents required for Trade License Registration are as follows:
- Address proof and PAN of Directors / Partners/Owner of the Business
- Address Proof of Business
- Certificate of Incorporation and PAN card of the business
- Bank Statement / Cancelled Cheque of the Entity (latest)
- GST Registration Certificate (optional)
- Memorandum and Articles of Association; Declaration in Form No. 32; Form No. 18; Proof of occupancy (in case of companies)
Following is the online trade license registration process.
Step 1: Visit the official website of KMC
Step 2: Click on New Application under Trade License
Step 3: The application form will pop up on the screen
Step 4: Fill in the form correctly with required details
Step 5: Select the nature of business
Step 6: After that, you have to attach the required documents
Step 7: Then submit the form online and pay fees
Step 9: Authority will then conduct an inspection of the business premise
The Certificate of Enlistment is issued by the respective authority only after satisfactory verification of all the information.
The fees vary depending on the nature of the business.
Where to Apply for Trade License?
Apply to License Department based on your state and locality. Usually, the Local Authority or Municipality Corporation has the authority to grant a Trade License.
How long does it take to grant KMC Trade License?
After making the required enquiries, the Municipal Commissioner or the concerned authority issues the certificate of enlistment within thirty days of application. This also depends whether the applicant has adhered to all the rules and regulations.
Why is Trade Licence important?
A trade license gives you permission to operate your business in a particular location, area, state.
How many types of trade licenses are there?
There are three types of trade licenses.
Does an online business require a trade license?
Every business requires a license or permit to run its business.
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