Trade License is a certificate of permission granted by the local government such as Panchayat, Municipality and Municipal corporations to do business in the specified address located in the local area of concerned local self-government. Mostly the authority of certificate goes to the Health Department of the concerned LSGD. The issue of Trade License comes under “The Kerala Panchayat Raj Act, 1994”. It was amended in 2018 to regulate the issuing of licenses. By passing the “The Kerala Investment Promotion and Facilitation Act 2018” act there was a replacement of the term “Issue of License to Dangerous and Offensive Trades and Factories Rules 1996” with the words “Issue of License to new and existing Factories, Company Trade, Entrepreneurship and Other Services Amendment Rules 2018”.
The Owner / Occupier / Authorized Representative of type specified in Schedule I (Trade, Commerce and Establishment) shall submit an application to the Secretary within 30 days. If the applicant prefers to start more than one trade/ venture he has to take different license for each additional ones.
Need for Trade License
- The primary need of Trade License is to control and regulate the trades which are unethical or offensive in nature.
- Admission shall be available for every member of the public, if the seeking license is for the purpose of dining, cafeteria, or for beauty saloons as per the certificate of license issued by the Secretary and Officer authorized.
The Trade License application consists of two variants
- New License Application
- Renewal of Existing License
Steps for Applying for Trade License
Step 1:
The applicant has to submit the application along with required and recommended documents through online or offline to Secretary or Officer. After the receipt of the application and related documents the secretary shall issue an acknowledgment/ response to the applicant. In absence of any specified document with application, the secretary or officer shall immediately inform the applicant and allow the applicant to submit the needed documents within three days with respect to the date of application.
Step 2:
Based on the type of trade, the processing of the application starts with the proposed premise inspection and submission of the field verification details by the Health Inspector reporting to the Secretary. Based on the suggestion received from the side of the Inspector, The Secretary takes a decision whether license is to be granted or not.
Step 3:
License Fees Payment
Fee details (as per schedule II, excluding government fees, stamp charges, notarization, court fee stamps.)
- Rs.6500/- for micro, small, medium shops and commercial offices which only have single state operations, excludes multi state brand or franchise business.
2.Rs.8000/- For micro, small, medium Shops and Commercial offices which have multi state operations, but excludes big multi state brand or franchise business.
- Rs.12000/- For big and multi state branded shops and commercial offices, includes restaurants, logistics, warehouses, multi state franchise business.
Step 4:
License will issue within 8 days of receipt of prescribed fees.
Documents Needed For Trade License
- Building owner’s consent letter (Rs. 200 notarized stamp paper)
- Latest property tax receipt
- Affidavit of Applicant (Rs. 200 stamp paper)
- Rent Agreement
- Identification Proof
- Memorandum and Articles, Certificate of Incorporation / Partnership Agreement
- Consent letter/ Board Resolution for Authorized Signatory
- NOC is needed in case of Industry/ Workshop/ Machinery/ Factory license application.
- Report of District Medical Officer of Health, NOC from Department of Town and Country Planning, NOC from State Pollution Control Board are needed in case of medical institution license application.