Trade License Assam – Best Guide of 2024 – BT

A trade license is a document that legalizes permission to engage in certain business activities in a given area. The Indian system of trade licensing can vary from state to state, and this study found that the same applies to Assam. 

A trade license is a must to legally do any business in Assam, otherwise penalties will be imposed. It also ensures that the company follows the standards and requirements of safety measures set by the government to protect people’s lives.

In this blog post, you will first know what a trade license is and why it is needed in this type of state, second, the application process and the fees associated with it, third, the renewal process and the penalties associated with it, fourth, the benefits of having a trade license.

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Why is a Trade License Important in Assam?

It is undeniable that an applicant doing any type of business in Assam needs a trade license. It guarantees compliance with the laws of the Assam Municipal Corporation and other legal bodies. Here are some of the main reasons why it is important to get a trade license assam:

1. Legal compliance: A trade license is also proof that a business is allowed to operate in a given area. Doing business without a trade license can be risky as it leads to fines and closure of the business.
2. Ensures safety: Trade licenses are granted by the Assam government only when the government is sure that the operation of the business may pose a threat to the health and safety of the public.
3. Prevents illegal activities: Trade licenses are issued to legally acceptable trade and businesses to avoid unlawful or unsafe business in the state.
4. Regulates business practices: Through the licensing system, many business conducts in various sectors are controlled. It obliges all enterprises to operate under the laws, taxation, and other (standard) conditions set in this country.

How Many Types of Trade Licenses in Assam?

The nature or type of trade license Assam issued at the Assam municipal corporation department varies according to the type of business and its activities. The main criteria for classification depend on the type of organization or business.

• Industrial License: This license is for producers, i.e. businessmen who deal in the production or processing of goods. Some examples of capital-intensive industries include; the textile industry, chemical industry, and machinery industry.
• Commercial License: This type of license applies to business entities that engage in trading, food processing, business services, and other similar business activities. It covers all businesses that engage in selling goods and services.
• Food Establishment License: The general trade license will not suffice, any business that prepares and sells food in any form needs this particular license. This includes restaurants, cafes, food vending stands, and any other business that deals with food supply and preparation.
• Shop and Establishment License: Establishments such as shops, retail shops, beautician shops, coaching centers gymkhana classes, etc. require this license.
• Health Business License: Companies that provide products and services related to the health sector such as clinics, medical shops, and diagnostic centers have to obtain this kind of license.
• Environmental License: Certain businesses that may have a potential impact on the environment because they engage in activities such as dealing with hazardous materials or pollutants will need this license as a way to meet environmental requirements.

What is the Eligibility Criteria for a Trade License Assam?

Before applying for a trade license Assam, it is important to check the eligibility requirements. The basic eligibility criteria are as follows:

1. Ownership of the Business Premises: The applicant has to either own or lease the building where de business is to be operated from. For rented places, a no-objection certificate from the property owner is needed for the award of the permit.
2. Legal Documents: The business must have a registration number and or pin, it should be registered with various authorities such as GST and all legal documents ought to be signed.
3. Compliance with Local Laws: Local government includes certain safety and environmental requirements the business has to employ.
4. No Criminal Record: The business owner must not have any criminal record or pending litigation that could impact the legitimacy of the business.
5. Approval from Relevant Authorities: For specific businesses like those in the food or healthcare industries, approval from the Health Department, Fire Department, and other regulatory bodies may be required.

What is the Application Process for Trade License Assam?

The process for obtaining a trade license Assam involves a few steps, which can be completed online or offline. Here is a step-by-step guide:

Step 1: Visit the Official Portal

As mentioned earlier, the process followed for trade license application in Assam can be done online through the Assam Municipal Corporation website. Businesses located in Guwahati, Silchar, Dibrugarh, and Jorhat need to visit the official website of the Municipal Corporation of their business location.

Step 2: Register and Create an Account

For first-time candidates, you can simply register on the portal to be able to apply for the desired job. This means that you will have to enter personal information such as your name, your address, and even your phone number.

Step 3: Fill Out the Application Form

Once registered, fill out the application form for a trade license assam. The form will require details such as:

• Business name and type
• Address of the establishment
• Nature of the business
• Business owner’s details
• Contact information
• Documents related to ownership or lease of premises

Step 4: Upload Required Documents

To process the application, you need to submit the following documents:

1. Proof of ownership or lease agreement of the business premises
2. Identity proof of the business owner (Aadhar card, PAN card, etc.)
3. Address proof of the owner.
4. NOC from the Fire Department, Health Department, or any other regulatory bodies (if required)
5. Recent passport-size photographs
6. Partnership deed (if applicable)
7. Memorandum of Association (MOA) and Articles of Association (AOA) for companies

Step 5: Pay the Application Fees

The application fee for a trade license depends on the type of business, size, and location. You will make the payment on the portal, so you will have to submit the amount online that you are willing to risk.

Step 6: Inspection and Verification

That is, after filling out the application, the municipal officials will visit the business premises and assess the compliance with safety and regulatory measures. If the officials approve it then it will be approved based on the inspection report and if the officials reject it then it means the application will be rejected based on the same report.

Step 7: Issuance of Trade License

The trade license is issued after the inspection is done and the application is verified. Trade licenses are digital and you will be able to download them from the portal once the application is approved.

What are the Fees for Trade License Assam?

It is often the case that the trade license fees vary from state to state and in Assam it also matters in this regard depending on the type of business its location of a business entity and the number of employees. 

The fees for small businesses are slightly lower while larger corporations or industries may have slightly higher fees to pay. The fee structure is often changed annually by the municipal corporation that has set up the FCC.

Key Factors Influencing Trade License Fees

1. Nature of Business: Manufacturing companies are normally required to pay more for the services than retail or commercial companies.
2. Location: Companies that operate within large cities including Guwahati or in other big cities have higher license charges than companies in the small towns.
3. Business Size: Business size and operational capacity are also used to set the trade license fee they will be required to pay. The fee charged will depend on how big the company is that is, a company with many employees will be charged more than a small company.

What is the Renewal of Trade License Assam?

A trade license has a specified duration of validity, normally one year after which a trader is required to renew it. To renew the license the process required is rather straightforward and one only needs to log in to the municipal corporate portal.

Renewal Process

1. Log in to the Portal: Go to the website of the Assam Municipal Corporation and enter your login information to proceed through the site.
2. Select the Renewal Option: Select the option for license renewal and key in your trade license number.
3. Pay the Renewal Fees: These renewal costs depend on the initial costs of the application, but these fees can differ where there are alterations in the business or fees during application.
4. Submit Required Documents: An NOC may be required if your business is more than 2 years old; also, you may have to submit tax payment receipts and new business registration certificates.
5. Issuance of Renewed License: After the payment and submission of all the legal documents, the renewed trade license assam will be instituted.

What are the Penalties for Non-Compliance?

The candidates are also to face very severe consequences if they are found operating a business with an expired or without a trade license assam.

Indeed the local government authorities of Assam possess the right to fine a business, temporarily or indefinitely shut down the business if the business repeatedly violates the law. The penalties may include:

1. Hefty Fines: Any company without a trade license assam is at risk of receiving huge penalties which vary daily until the company complies with the law.
2. Business Closure: It means the municipal corporation can also close down organizations that do not adhere to trade license rules.
3. Legal Actions: In some circumstances, repeat violators are exposed to mayhem, which leads to criminal charges or a lawsuit.

What are the Benefits of Obtaining a Trade License?

Obtaining a trade license comes with several benefits for businesses in Assam:

1. Legality: A business license provides legal legitimacy in a particular trade, thereby increasing the credibility of the business in the eyes of various customers, suppliers, and the state. 
2. Compliance with local laws: It prevents the business from going against the law set in the region and prevents the occurrence of penalties and fines. 
3. Business expansion: Specifically, those who have a proper business license can expand their business and open branches everywhere or sign contracts with the government. 
4. Access to financial aid: Banks and other financial institutions may require a business license when reviewing business financing or grants, which helps in obtaining funds to expand business operations. 
5. Reputation and credibility: A licensed business is considered more trustworthy and it will attract more customers and partners as a result.

Which Type of Authorities are Responsible for Issuing Trade Licenses?

In Assam, business licenses come mainly from local authorities like municipal corporations and municipalities, etc. The process and manner in which you apply and get approval for your business may vary depending on the country you do business in.

• Guwahati Municipal Corporation (GMC): GMC is considered to be in charge of issuing business licenses for the city of Guwahati.
• Municipal Boards in Other Cities: Other cities in Assam like Silchar, Dibrugarh, Jorhat, and Tezpur also have their own municipal boards that are responsible for granting business licenses.
• Rural Areas: In rural areas or small towns, village panchayats or block development offices are involved in issuing business licenses.

What is the Timeline for Issuance of Trade License?

After uploading your application along with supporting documents, the waiting time for a trade license ranges from 15-30 days. However, the timeline may vary depending on the following factors:

• Complexity of Business: Some downloading may involve inspection by other departments of the same or even higher authority, hence longer downloading times may be required.
• Pending Document Verification: If another check is required from the fire, health, or environment department, it may take longer.
• Location: Due to faster online services, firms located in bigger cities like Guwahati can benefit from shorter processing times.

What is the Online and Offline Application Process for Trade License Assam?

The Government of Assam has made significant strides in digitizing the trade license application process. Here’s a breakdown of the two modes:

Online Procedure

• Visit the Assam Municipal Corporation website: Every city’s municipal corporation or board has a website where you can apply online for a plot.
• Fill out the form: In this application, you will have to fill out an application form which will include information such as type and subtype of business, owner information, and business address.
• Upload documents: Scanned copies of relevant documents such as owner’s identity document, proof of business address, and NOC, if any, must be uploaded.
• Pay fee online: This system enables the applicant to pay the trade license assam fee through online banking services.
• Track the application: The status of the application can still be checked using the committed portal.
• Download the license: After approval, the trade license assam will be downloadable from the portal.

Offline Procedure

• Visit Municipal Office: To generate this code, you need to visit the Municipal Office of the city where your business is located.
• Submit Application: Fill up the form and submit the hard copy of the required documents and take it in physical form from the office along with other documents.
• Pay Fee: Deposit the required fee in the Municipal Office in the form of cash or bank draft.: 
• Inspection: This is done by the officials of the Municipal Office who will visit your premises to determine if it meets the safety and health requirements.
• Get Trade License: After approval, the trade license assam will be issued from the Municipal Office.

If you want to know more about the online and offline Application Process for Trade License Assam then you can click on the below video

If you want to know about the registration of a trade license you can get a complete guide and guidance of the registration by just clicking here.

What is the Validity of Trade License Assam?

Trade license Assam are generally given on an annual basis, where the license holder has to carry out his trade within a stipulated period of one year. 

After the period of one year, one has to buy another license to maintain the legal standards of the given country. This is because not renewing the trade license assam is likely to attract penalties, hampering normal business operations.

• Validity of special permits: For example, the licenses given to certain businesses like firecrackers, chemicals, and hazardous products are seasonal licenses for only a few months. These businesses need to obtain new licenses before starting operations during the next season.

What is the Trade License Renewal Penalties in Assam?

In case you fail in the process of renewal of trade license assam on time then the Assam Municipal Corporation charges fines progressively. 

The penalties could vary from 2-10% of the total trade license assam fee where the construction work was delayed. Continuous failure to renew the license can lead to legal actions, including:

• Imposing Heavy Fines: Large fines should be imposed in case of violation of the requirements set by the regulation.
• Closure of Business: The municipal authorities have the right to close businesses that are running unlawfully or without having a trade license assam.
• Legal Proceedings: At worst, there may be legal cases against the business that will defame the owner and make it difficult to get business in the future.

What are the Exemptions from Trade License Assam?

There are possibilities where certain businesses and professions can take exemptions regarding trade licenses in Assam. These exemptions generally apply to the following: 

• Cottage Industries: It has to be understood that small-scale cottage industries which are home-based industries with limitations on the type of products they manufacture cannot be expected to have a trade license assam.
• Agricultural Activities: The practice of farming and other agricultural activities in rural areas does not require a trade license assam but may require other permits such as land use permits.
• Professionals and Freelancers: Certain workers such as independent consultants, doctors, and lawyers do not require a trade license assam to run their businesses. But this does not mean that they are excluded from certain other professional bodies they may need to join.

What is the Grievance Redressal?

In case of any discrepancies, delays, or issues faced while applying for a trade license Assam, businesses can contact the Grievance Redressal Cells within their municipal corporation. The Assam Government has set up helplines and email support to address concerns related to trade licenses.

Businesses can also escalate the issue to higher authorities, such as the State Urban Development Authority (SUDA) if they feel their grievances are not adequately addressed.

In Conclusion

In Assam, obtaining a trade license is a mandatory legal requirement for businesses of all sizes. It not only ensures compliance with state and municipal regulations but also helps build trust and legitimacy for your enterprise.

The process, while involving several steps, has been made convenient through online portals, making it easier for entrepreneurs to apply, renew, and maintain their licenses.

By staying compliant and securing a trade license, businesses in Assam can operate smoothly, grow, and contribute to the local economy without facing legal hassles.

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