Trade License is a mandatory registration required to start a business in India. It is a document that allows an applicant (who wants to start a business) to commence it in a particular trade in specific area or location. Respective State Government is authorized body that issues trade licenses that assures an entrepreneur to start a business. Trade License does not allow an applicant to trade in one particular business only and does not pass any kind of property ownership.

Trading License is regulated by Municipal Corporation acts by the State Government and issued after consulting with departments like health, fire, engineering, etc. Set of rules, regulations and guidelines are to be followed by an enterprise that gets a trade license. Trade License affirms that an enterprise or business is not conducting any unethical methods or using hazardous items that may harm people living in defined area or locality. Its issuance ensures government to regulate trade activities across the nation.

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