A trade license (also called a shop license or business license) is a mandatory certificate issued by the local municipal corporation or Gram Panchayat that authorizes you to run a specific business from a specific location.

Who Needs a Trade License?

Almost every business operating from a fixed location needs a trade license, including:

  • Retail shops — grocery, clothing, electronics, pharmacy
  • Restaurants, dhabas, bakeries, and food stalls
  • Service shops — salons, tailors, repair shops
  • Wholesale traders and distributors
  • Factories and small manufacturing units

Why Is It Mandatory?

Under the Shops and Establishments Act (which varies by state), every employer running a shop or commercial establishment must register with the local authority within 30 days of commencing business. Failure to do so can result in:

  • Fines ranging from ₹500 to ₹50,000 depending on the state
  • Closure of your establishment by the authorities
  • Difficulty opening a business bank account
  • Problems obtaining GST registration

How Long Does It Take?

The processing time depends on the local authority and the state. Typically it ranges from 7 to 30 working days. With professional consultants like us, we expedite the process and handle all follow-ups so you can focus on running your business.

How Much Does It Cost?

Government fees vary by state and business type — usually between ₹500 and ₹5,000. Our consultation fee starts at just ₹999 for the complete end-to-end service.