Every India citizen who is carrying on or intending to start his/her own trade needs to have a valid trade license. Without a valid trade license any trade will be deemed as illegal. Any trader can obtain a trade license from the local administrative authority of his/her state. To obtain a trade license the traders will have to furnish certain details which include the personal details of the trader and also the concerned trade.
'''Different rules of trade license'''
In general the trades which are included in the 33 heads as mentioned in Annex A, comes under “Red Category”. Whereas, the trades that are not included in the red category belongs to the “Green Category”. In case if a trade belongs to a Green Category trade, license will be issued on the same day of submission of application form without any enquiry only after the payment of the required license fees in Cash or by Bank Draft/Pay Order. However, payment by cheque is not allowed in such case. In case the trade belongs to the Red Category trade, license will only be issued after a detail enquiry.
Similarly, as per the rules and regulation regarding the trade license a trader is also required to pay the required license fees. If he/she defaulters then a penalty, depending upon the period of default, will be issues against the trader. Traders are also required to renew their trade license in due time.
'''Rules regarding false documentation'''
In case if the license department discovers that false documents have been submitted by a trader to obtain a license, then they will immediately cancel the issued trade license at once penal measures will be taken against such applicants.
In case you need any further information on Trade License you can easily contact the Help Desk Counter in the License department, at the KMC head office. You can also call helpdesk at 2286 1000 (extension number - 2839. You can also opt to purchase a copy of the book “Trade License (C. E.) Demystified” which explains the various rules and procedures regarding the trade license from the help desk counter of the license department or any other units of license department. The cost of the book is around Rs 25.