A Summary of Trade license, also known as a business license
A trade license usually referred to as a business licence, is a licence given by the government to a person or firm to operate a business.
These permits, which are required to be secured from the relevant State government for the conduct of the trade, are utilised all over the nation. This post examines the application process for a trading license in Kolkata.
Kolkata Municipal Corporation Act, 1980
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 Kolkata Municipal Corporation grants the Certificate of Enlistment. After the licensee remits the scheduled rates/ fee/charges of license department and approved by the Corporation in such case the applicant can collect the certificate. The license department of the Corporation acts as the principal Department in processing the applications and the collection of fees. As per the rules laid by the Municipal Corporation of Kolkata, it is mandatory to obtain a Certificate of Enlistment, which in West Bengal holds equal significance to a trade license.
Need for the License
A trade license is a legitimate authorization to control a company operating in a certain area. This license attests that a certain business is operating in a way and in a location that adheres to all applicable laws, regulations, and safety requirements as set out by the relevant Department. The State Government, which has the authority to oversee local commerce, sets the rules for trade licenses. After the licence has been issued, you must regularly renew it using the renewal application form, at least 30 days before the license expires.
Depending on the sort of company and the location where it will be conducted, different documents are needed to apply for a trade licencse.
Place of Business
- Furnish the tax bill if the petitioner owns the business.
- Furnish the rent bill if the tenant owns the business.
- Furnish the lease deed if the lessee owns a business.
- Furnish a consent letter if the owner of the business is provided rent-free accommodation by the owner.
- Furnish a consent letter along with the current CE of the tenant if
the owner of the business is provided rent-free accommodation by any bona fide tenant.
- Furnish the consent of the house owner if the business owner is a
sub-tenant (in addition to other documents such as rent bill, current
CE, etc.).
- If a trade/ profession/ calling is carried out without obtaining a trade license, the concerned Department issues a spot CE.
The documents mentioned below have to be submitted if the trade license is to be obtained by a Private Limited Company.
- Memorandum/Articles of Association
- Declaration made in Form No. 32
- Occupancy proof
- Application in Form No. 18
Besides the submission of the required forms and documents, an
individual has to provide an affidavit or a declaration certifying that
the concerned person (the business owner or the person on behalf of the
company) will be held responsible for any discrepancy or illegal
activity. The certificate of enlistment stands cancelled on discovering
any malpractice in the submitted documents.
For a partnership firm to obtain a trade license, submit the partnership deed.
