A trade license allows you to operate your business in a particular area. It doesn’t refer any property ownership. The municipal corporation licensing department issues the licenses in different areas like industries, health and engineering.
The legal agreement of trade licenses have been authorised by the government in order to regulate the domestics and the international cities. The permission letter or documents need to be carried on trade or in a business place where it is located. The issuing of trade license may vary depends on state or local government agencies (i.e. Municipals) rules and regulations.
Trade license had been introduced in India and is fully regulated by the state government through municipal corporation acts. It provides a way to regulate and carry out any form of business from a particular locality.
Its main job is to ensure that there is no health hazards and nuisances by improper trade and also it controls the people form executing any kind of business from their resident areas to maintain the business and the locality environment.