How to get a Trade License in Rajasthan?

Are you an aspiring entrepreneur with dreams of starting your business empire in the vibrant state of Rajasthan? Well, get ready for an exciting journey to success! But before you take the plunge, you have to take one crucial step: get a trade license. Beneath Rajasthan’s majestic heritage lies a dynamic system that promotes fair trade, protects the public interest, and paves the way for thriving businesses. The trade license is the golden key that opens the door to this realm of possibilities. It not only validates your business operations but also assures your customers, partners, and stakeholders that you are a responsible player in the game.
Trade License is known as “Shop and Establishment Registration” or “Trade License” in many states and “Gumasta License” in Maharashtra. In this article, we will discuss the Trade License in Rajasthan.

What is a Trade License?

The permission to operate a specific trade or business in a specific location is given by a trade license, which is a document or certificate presented to the applicant (a person who intends to start a business). It has ensured that all the safety regulations laid down by the state municipal corporation are followed while doing business or trading. It protects residents from health risks. However, the license only gives the holder the ability to carry out the company or activity for which it was issued. In addition, nothing in this authorization grants Licensee any type of property ownership.

The rules and regulations governing this registration of a trade license vary from state to state; for example, the procedures for registering a business license in Rajasthan will be different from registering a business license in Tamil Nadu. Therefore, before applying for a business license, the applicant must familiarize himself with the relevant laws in the jurisdiction.

An application for registration of a trade license in Rajasthan must be made within 30 days of incorporation. In most states, applications for new licenses and license renewals are accepted by the Commissioner of the Company.

Why trade licenses are important in Rajasthan?

The importance of a trade license in Rajasthan is given below-

• Legitimacy and Compliance: A trade license is a legal document issued by the municipal corporation, which grants authorization for a specific commercial activity. By obtaining a trade license, businesses in Rajasthan demonstrate their compliance with the applicable laws, regulations, and standards set by the government. It ensures that businesses operate within the framework of the law and contribute to a fair and transparent business environment.
• Health and Safety Measures: Trade licenses require businesses to adhere to specific health and safety standards set by the government. This ensures that businesses in Rajasthan maintain a clean and safe environment for employees, customers, and the general public. It helps prevent the spread of diseases, fire hazards, and other potential risks, thereby safeguarding the well-being of individuals associated with the business.
• Municipal Revenue Generation: Trade licenses contribute to the revenue generation of the municipal corporation. The fees collected through the issuance and renewal of trade licenses are utilized by the local authorities to develop and maintain public infrastructure, facilities, and services. This revenue helps in enhancing the overall business environment and promoting economic growth in Rajasthan.
• Consumer Protection: Trade licenses play a crucial role in protecting consumers’ interests. Before granting a trade license, the municipal authorities conduct inspections to ensure that businesses meet the required quality standards, maintain fair pricing practices, and provide genuine products or services. This helps in minimizing fraud, malpractices, and the sale of substandard goods, thereby enhancing consumer confidence and trust.
• Urban Planning and Regulation: Trade licenses enable effective urban planning and regulation. By having a record of licensed businesses, the authorities can monitor and manage the distribution and concentration of various commercial activities across different areas in Rajasthan. This helps in maintaining a balanced and sustainable urban development, avoiding overcrowding, and preventing unauthorized businesses from operating.
• Access to Financial Assistance and Incentives: In some cases, having a trade license is a prerequisite to accessing financial assistance, loans, and incentives provided by the government or financial institutions. By obtaining a trade license, businesses in Rajasthan become eligible for various schemes, subsidies, and support programs aimed at fostering entrepreneurship, business growth, and development.

Documents required to get a Trade License in Rajasthan

The following documents are required to obtain a business license in Rajasthan:

• License Application
• If the applicant is a legal entity, the relevant documents for company registration and the PAN card must be submitted
• Aadhaar Card
• Real estate tax documents
• The rental agreement or a copy of it should be offered
• Statements and Khata certificates in any form
• Occupancy Documents
• If the business is located in the neighborhood, a letter of objection from the neighbor is required
• Sanction Records.

Procedure for Obtaining a Trade License in Rajasthan

Below is the procedure for getting a trade license in Rajasthan:

• Firstly the applicant must submit an offline or online application. Applicant must apply and required documentation for online access. When using the offline option (in person), the applicant must bring all necessary papers to the relevant authority. The applicant must then complete an application form with the relevant license information.
• Different states may have different procedures for applying for a license depending on the needs of the applicant. However, the government has tried to convert every state’s system to electronic.
• To submit an online license application, the applicant must visit the specified website.
• Then the applicant will see a pop-up message with the terms of the license.
• To accept the conditions, the applicant must click on the Accept button.
• The applicant fills in the relevant data and details of the trade license in the next step of the procedure.
• In the online license registration system, there is a unique mode where document authentication can be done electronically. These must be filled in by the applicant together with any related documents.
• After completing this process, the applicant will receive written confirmation of the successful registration of the trade license.
• Within eight to eleven working days, the applicant will receive the license after receiving its confirmation.

Renewal and Validity of Trade License in Rajasthan

Rajasthan trade license is valid till March 31 every year. When the license is about to expire, you can renew it by submitting an affidavit that the business owner will continue to operate it for the next year. The procedures are the same as when applying for a trade license.

Final words

Obtaining a trade license is an essential step in establishing a legally compliant business in Rajasthan. By following the step-by-step process outlined in this guide, you can navigate the application process smoothly. It is advisable to consult the official website of the local municipal corporation or seek professional assistance to stay updated with the specific requirements and procedures. Remember, obtaining a trade license not only ensures legal compliance but also enhances the credibility and trustworthiness of your business.

In case of any query regarding the Trade License in Rajasthan, a team of expert advisors from Legal Window is here to assist you at every step. Feel free to reach us at admin@legalwindow.in.