Things that require ilicense license#
You don't want your personal taxes to be entwined with your business taxes, and a trade license helps separate the two. A trade license will help validate that you are meeting these requirements.īasically, if you don't have a trade license and you are supposed to, then it means you are operating an illegal business, which can lead to hefty fines and penalties.Ī trade license is also of benefit because it helps keep you from being personally liable for your business debts. The Shop and Establishment Act mandates that businesses operate according to business-like working hours and that workers are provided with sufficient benefits. In India, it is considered an offense if you don't get a trade license. You need to complete the proper steps to get a trade license because it can help you from getting penalized. Here's a closer look at the reasons you need a trade license. You must be able to execute require legal work, such as reporting income and expenses.Īdditional Reasons to Get a Trade License.You cannot have a criminal record (there may be exceptions to this).You have to be 18-years-old or older to get a trade license.Renewing your license on an annual basis is a requirement, and it must be renewed within 30 days of its expiration date.You will need to submit the application for a trade license before you actually start conducting business.Important Things to Consider Before Applying for a Trade License Some cities have their own fees you will have to pay these fees may be a set amount, or they may be determined by your annual sales. The fee that you will have to pay to get a trade license is determined by the state you are applying for it in. It also shows your company is not going to perform any actions that would be considered a nuisance. One reason you need a trade license is that it proves that the activities to be carried out by your company are not going to present any type of health hazard. During the last 40 years, trade licenses became available in India. You will need to acquire a trade license at least three months before you intend to commence your activities. The trade license acts as a type of permission slip that gives you the ability to carry out your operational processes. This will validate your ability to perform certain activities. If you are planning to start a business, you will need a trade license before you begin. When Should a Person Acquire a Trade License? A trade license is granted by the License Department, which is an authorized entity that specializes in granting businesses with the authority to conduct certain activities.
More so, it will be of value when you hire employees. It will also likely be needed if you want to open a business checking account.
You may need to present a trade license when you are applying for credit or capital for your business. It does not provide any special permission to carry out an activity other than the one it was issued for. This type of license is only good for the activity it was originally granted for. It is a legal document that provides legitimacy to a company and gives it the ability to perform certain actions in the country in which the trade license was granted. If you're wondering, "what is a trade license," a trade license is needed by a business in order to legally carry out various activities. Additional Reasons to Get a Trade License Important Things to Consider Before Applying for a Trade License 4. When Should a Person Acquire a Trade License? 2.
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