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Trade Licence: Municipal vs State, What to Apply For
FinTax24 Editorial Team4 min read
A Trade Licence is issued by the local municipal authority under the municipal act applicable to the city. It certifies that the business activity is permissible at the premises. Shop and Establishment Registration is issued under the state-level Shop Act and regulates employment conditions. Both are typically required for any commercial establishment. Apply for both during the initial setup. The Trade Licence must be renewed annually or as prescribed; Shop and Establishment is valid for one to five years depending on the state.