Trade license is a certificate/ document that permits a company to carry on the business or trade activities in a particular municipal limit for which it is issued. In Delhi, Trade License is issued by the Municipal Corporation of Delhi (MCD) to traders and establishments to monitor and regulate the various trade activities at the city level. In this article, we look at the purpose, procedure, and the documents required for obtaining Delhi trade license.

General Trade/ Storage License Issued by Municipal Corporation of Delhi (MCD)

Municipal Corporation of Delhi (MCD) issues general Trade/Storage License to the traders/ establishments for permitted trade activities under Section 2 (59) of the DMC Act, 1957. It is mandatory for all traders/ establishments to obtain trade/ storage license under Section 417 of the DMC Act, 1957 in the jurisdiction of MCD.

Delhi Shops & Establishment Act, 1954

Regulations under the Shop and Establishment Act lays down the following rules based on which the Delhi trade license is issued. Every establishment/shop must compulsorily be registered under this Act within 30 days of commencement of work. Shops and Establishments Act regulates the following aspects of doing business in India:

  • The working hours on a daily and weekly basis.
  • Provisions for spread-over, rest interval, opening, and closing hours closed days, national and religious holidays, overtime work.
  • Regulation of employment norms for children, young persons, and women.
  • Rules and regulations concerning paid leaves.
  • Rules and conditions for employment and termination of service.
  • Regulations concerning the maintenance of records and registers.
  • Obligations of employers as well as employees.
  • Precautions against fire, accidents, etc.
  • Regulations concerning the display of notices.
  • The responsibility of the employer and employee towards each other, the firm and the society.

Businesses Requiring Trade License

All commercial establishment that falls under the following categories must obtain license:

  • An establishment or administrative service in which persons employed or mainly engaged in office work.
  • A hotel, restaurant, boarding or eating house, a cafe or any other refreshment house.
  • A theatre, cinema or any other place of public amusement or entertainment.

Requirement to Obtain Trade License

The government has made it necessary for one to obtain trade license to ensure that the person is not carrying out unethical business practices and is following the relevant rules, safety measures and guidelines. A licensed business protects its owners against certain types of liability. If damage or injury occurs the business actions or doings, the personal finances would not be at stake in any settlement. The various types of trade licenses offer different levels of protection.

List of Required Documents

The following information or documents/records are to be furnished at the time of submitting the application form for obtaining Delhi trade license.

  • Address Proof and Identity Proof – Individual.
  • Affidavit
  • Certificate of Incorporation, MOA and AOA of the company.
  • Cancelled Cheque and Bank Statement.
  • Certificate of Incorporation, MOA and AOA of the company.
  • Legal Occupancy document proof of the establishment/unit or allotment letter of the government agency.
  • Documentary proof of establishment of trade.
  • Lease Deed of the constitution.
  • Documentary proof regarding the non-existence of unauthorized construction.
  • NOC (No Objection Certificate) from the land-owning agency.

Documents required for the renewal of a trade license:

  • Address Proof and Identity Proof
  • Original License copy
  • Old G-8 receipt
  • Application for renewal of a license

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