License to Trade in Kerala: Certificates issued by the local authority, such as Panchayat and Municipality Corporations, are known as trade licenses. Additionally, trade licenses are administered by “The Kerala Panchayat Raj Act, 1994” in Karnataka. Any kind of business can operate in the area where these licenses are issued by the municipal corporation. Any business located in Kerala must have a trade license in order to operate.
The Importance of Having a Trade Permit Businesses require a trade permit in order to carry out a variety of activities for legal reasons. It is a legally binding document that confers legitimacy on the business and authorizes it to carry out specific activities in the nation where the municipal corporation issues it.
This kind of license can only be obtained for certain desired activities. It doesn’t give any specific permission to do anything other than the one it was given for in the first place.
The online application for the trade license is required because it demonstrates that your company’s operations do not pose a health risk. In addition, it demonstrates that your company will not engage in any behavior that the government might find objectionable.
When you submit your application for a trade license, the state will decide how much you must pay. You are required to pay particular fees in some municipalities. They can be a one-time expense or they can be based on how much you sell each year.
Documents Required:
Table of Contents
- Application Form ID (Passport, Bank Passbook, PAN, or DL)
- Address Evidence (Bank Passbook, Passport)
- Passport Photograph (for a single owner) or Jt. Illustration (for Jt. Owners)
- For Companies/Firms/Societies (Registration Certificate) Current and up-to-date tax receipts for Property Tax (Commercial – Business Industrial)
- GST Number Letterhead Self-declaration
- Aadhaar Card
- Rental Agreement if the property is rented
The following guidelines have been established to eliminate any possibility of illegal activity:
When the application is submitted, the applicant must be 18 years old. The nature of the business must be legal Food service companies that provide trade-in services and manufacturing units must obtain a license. The Kerala Municipality Amendment Act of 1996 requires anyone starting a business in the state, including industries, factories, or workplaces, to first obtain authorization from the relevant government before beginning any work. They should also not have any previous criminal convictions.
You may have registered your company or companies, but before you can start running your business, you need licenses like the FSSAI, GST, trade license, etc. By submitting an application and paying the necessary fees to an organization like the state’s municipality, trade licenses can be easily obtained online. The entire procedure can take up to 40 days.
Click here to know more: What is meant by trade license?
How do I acquire a Kerala trade license?
Step 1: Either by mail or online, the applicant must submit the application along with the required and recommended documents to the officer or secretary.
The secretary is obligated to provide applicants with an acknowledgment or response following the receipt of the application and any supporting documents. The applicant must be informed right away by the secretary or officer if there is no specific document attached to the application.
In addition, the applicant must receive all required documents from the secretary within three days of submitting their application.
Step 2: Depending on the nature of the business, the application process starts with the proposed building inspection and the Health Inspector, who reports directly to the Secretary, submitting information about the field verification.
The Secretary decides whether a license is issued or denied based on the Inspector’s recommendations.
Step 3: Information about fees (as in Schedule II, which does not include costs for notarization, stamps, court stamps, or the government)
8,000 for small, micro, and medium-sized commercial offices and shops that operate in multiple states but are not the largest multi-state brand or franchise businesses; 12,000 for large and multi-state branded stores and commercial offices. This includes restaurants, warehouses, multi-state franchises, logistics, and warehouses.
Step 4 The license will be issued eight days after the required fee is received.
The Advantages of Obtaining a Trade License
Legally Safe Having a trade license indicates that the company’s work environment is safe and in compliance with state guidelines and regulations.
Additionally, it indicates that the business cannot be closed. This is because it is inappropriate for the region. Additionally, it shields owners from certain liabilities.
Doesn’t Mean Competence Most of the time, you get a license after passing a test, and in the case of a trade license, the municipal corporation officials check to see if the business can operate in the area. Essentially, obtaining a license indicates that the company is permitted to operate in a particular region.
Penalties Inflicted Trading licenses can be compared to driving without a license because a driver without a license is likely to face penalties and, in some cases, jail time.
The same thing happens to someone who starts a business in a place where the state government hasn’t approved it before. He or she will probably be shut down and have to pay big fines.
The type of business and the location in which it operates determine the amount of penalties that are imposed on them.
In conclusion, when applying for the trade license, it is recommended that you provide additional copies of your documents and have them countersigned for your security. Visit the closest operating business in your area and inquire about any current updates requirements.
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