MCD Trade License in Delhi : Online Application & Procedure

Are you an aspiring entrepreneur in Delhi looking to start a business? One of the fundamental requirements for setting up a legitimate business in the city is obtaining an MCD trade license. This license not only legitimizes your business operations but also ensures that you contribute positively to the city’s economy. Our Experts will help you in documents preparation and filing of  Application for Trade license in delhi

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Trade License or Business License

The MCD (Municipal Corporation of Delhi) trade license is a legal document that grants you the authority to operate a specific trade or business within the jurisdiction of the Municipal Corporation. This license is regulated under the Delhi Municipal Corporation Act, which mandates that any individual or entity engaging in a trade must hold a valid trade license.

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Benefits of Holding an MCD Trade License:

  1. Legitimacy and Trust: Acquiring an MCD trade license showcases that your business operates in adherence to the legal norms. This legitimacy helps in building trust among potential customers and partners.
  2. Avoid Legal Hassles: Operating without a valid trade license can lead to hefty penalties or even the closure of your business. Holding an MCD trade license keeps you on the right side of the law.
  3. Access to Resources: Many government schemes and initiatives are accessible only to licensed businesses. Holding the license makes you eligible to avail of these benefits.

Who Need Trade License?

The requirement for a trade license varies depending on the city or state in India. However, businesses that typically need a trade license include:

  • Retail businesses: This includes shops that sell products directly to consumers, such as grocery stores, clothing stores, and electronics stores.
  • Restaurants: This includes businesses that prepare and serve food to customers, such as sit-down restaurants, fast food restaurants, and food trucks.
  • Service businesses: This includes businesses that provide services to customers, such as hair salons, car washes, and repair shops.
  • Manufacturing businesses: This includes businesses that produce goods, such as factories and workshops.
  • Wholesale businesses: This includes businesses that sell products to retailers, such as distributors and wholesalers.

Why trade license is required?

A trade license is a legal document that allows a business to operate in a particular area. It is issued by the local government and is required for businesses that engage in certain activities, such as selling goods or services, manufacturing products, or importing or exporting goods.

There are several reasons why trade licenses are required. First, they help to ensure that businesses are operating in compliance with local laws and regulations. Second, they help to protect the public from harm by ensuring that businesses are meeting certain safety and health standards. Third, they help to generate revenue for the local government.

What Documents Required for Trade License?

Documents Required for Trade License depend on type of applicants and state where you are applying for Trade License. however basic documents for trade license application will be same as following –

  • Pan Card of the establishment in case of company, LLP or Firm
  • Canceled Cheque or bank statement of the establishment.
  • Colour Photograph, Pan card and ID Proof and Address Proof of all Directors/ Partners.
  • Site Plan/Key Plan showing the area under the occupation of the applicant or earmarking salient features of the neighbourhood of the site.
  • Certificate of Incorporation, MOA and AOA of the company or LLP/ Partnership Agreement as the case may be.
  • Premises Proof: Sale Deed, Electricity Bill/water bill and NOC from owner.
  • Photograph of the establishment with front-facia, display of goods traded from the premises or the business being carried out from the premises

Fee for Trade License

Rs 5,999/-

+ Govt fee will be on Actual Basis
  • Documents Drafting 
  • Online Application Filing 
  • Departments Telephonic follow up until issuance of Trade License 
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FAQs on Trade Licence

The MCD trade license is typically valid for one year from the date of issuance. It needs to be renewed annually.

No, it is illegal to operate a business within the jurisdiction of MCD without a valid trade license. Non-compliance can result in penalties and legal actions.

The processing time varies, but it usually takes a few weeks. The duration depends on factors such as the completeness of your application and the inspection process.

No, the trade license is not transferable. If there’s a change in ownership, the new owner must apply for a fresh trade license.

Yes, certain small-scale businesses, such as street vendors, might be exempt from obtaining the trade license. It’s best to check with the local MCD office for specific exemptions.

Operating without a valid trade license can lead to fines, penalties, and even closure of the business. It’s essential to comply with the legal requirements.