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How to get a Trade License?

January 14, 2020

Trade Licenses are issued by the License Department of the MCGM which is an administrative department of the Municipal Corporation and issues licenses in consultation with and advice from other technical advisory departments like, the Fire Brigade, Health, Engineering, Estate, etc.

In view of this it is necessary for any business Establishments to take necessary licenses from the License Department before starting manufacturing, storage or trade of any commodity / activity. The application must be received from the business establishment three months prior to starting the activity.

 

Who issues a Trade License?

  • The License Department of the MCGM issues Trade Licenses.

 

How to Apply for a Trade License?

  • Visit the Citizen Facilitation Centre (CFC) nearest to the proposed business establishment.
  • The applicant needs to submit the duly completed and signed application form, along with required documents and fees at the CFC.
  • The Form for applying for a Trade License can be downloaded here.

 

What happens at the CFC and the License Department?

  • The application is sent from the CFC to the License Department
  •  As a further process the application is assigned to and processed by the Department Head (Sr. Inspector License) of License Department at the concerned Ward.
  • After site inspection and approval of the application, the scheduled fees are collected and the license is issued to the applicant.

 

 How long does it take to approve an Application?

Approving Authority Sr. Inspector (License Department)
Processing Duration Nil for Renewal and Duplicate certificate application as the certificate will be delivered at the time of submission of valid application along with applicable fees.
Seven days (per scrutiny level) for all other applications from the date of submission of valid application along with required documents.
Application Scrutiny Levels Single level for Renewal and Duplicate certificate application
Two levels scrutiny for all other applications

 

What are the Fees Applicable?

Scrutiny Fee payable at the time of submission of New Trade License Application
Schedule Fee payable after approval of application by the competent authority for all applications.

 

The following are the different documents required to obtain a Trade Licence and other related formalities:

Trade License – u/s 394 of the Mumbai Municipal Corporation Act, 1888:

Serial No. Attested true copies of following Documents have to be submitted
1 Proof of possession: (Any One)Rent receipt / Society maintenance receipt / Registered purchase agreement / Leave license agreement / Indemnity bond on Rs. 500/- stamp paper from the applicant with some other proof such as electricity bill etc. to establish his continuous occupation of the premises.
2 Proof of authenticity of Premises: (Any One from A, B & C)A. Premises in declared slum on state Government / MHADA / MCGM / Private Land Prior to 01-01-1995:a) Photo-pass for commercial userORb) Proof of existence for commercial user (Any One)- Electricity Bill- Shop & Establishment Registration Certificate- Holders of any License- Any Tax Receipt

 

B. Premises in non declared slum on state Government / MHADA / MCGM Prior to 01-01-1995:

a) Photo-pass for commercial user

OR

b) Proof of existence for commercial user (Any One)

– Electricity Bill

– Shop & Establishment Registration Certificate

– Holders of any License

– Any Tax Receipt

 

C. Premises in Non-Slum Area: (Any One)

a) Proof of existence prior to 01.04.1962

– Assessment Extract

– CTS Plan and PR card

OR

b) Occupation Certificate / Building Completion Certificate / Approved Change of User / Approved Industrial estate / Old licence in same or subject to authorization of structure / premises
3 Proof of Fire Safety measures:a) NOC from CFO other than Codified Requirement.ORb) Fire (Codified) requirements as per Appendix A and Appendix B.ANDc) Undertaking from the party for compliance of requirements stated above.
4 License, if anya) Bombay Shops & establishmentb) License u/s 394 of the Mumbai Municipal Corporation Act, 1888, if anyc) Permit u/s 390 of the Mumbai Municipal Corporation Act, 1888
5 NOC from Commissioner of Police
6 List of Ancillary commodities

 

Renewal of Trade License – u/s 394 of the Mumbai Municipal Corporation Act, 1888:

Serial No. Document
1 Original License
2 Proof of Identity (Voter’s ID card, Driving License, Railway pass)
3 Application

 

Supplementary Trade License – u/s 394 of the Mumbai Municipal Corporation Act, 1888:

Serial No. Document
1 Proof of possession: (Any One)Rent receipt / Society maintenance receipt / Registered purchase agreement / Leave license agreement / Indemnity bond on Rs. 500/- stamp paper from the applicant with some other proof such as electricity bill etc to establish his continuous occupation of the premises.
2 Proof of authenticity of Premises: (Any One from A, B & C)A. Premises in declared slum on state Government / MHADA / MCGM / Private Land Prior to 01-01-1995:a) Photo-pass for commercial user (License will be granted maximum up to 500 Sq. ft.)ORb) Proof of existence for commercial user (Any One)- Electricity Bill- Shop & Establishment Registration Certificate- Holders of any License- Any Tax Receipt

 

B. Premises in non declared slum on state Government / MHADA / MCGM / Private Land Prior to 01-01-1995:

a) Photo-pass for commercial user (License will be granted maximum up to 500 Sq. ft.)

OR

b) Proof of existence for commercial user (Any One)

– Electricity Bill

– Shop & Establishment Registration Certificate

– Holders of any License

– Any Tax Receipt

 

C. Premises in Non-Slum Area: (Any One)

a) Proof of existence prior to 01.04.1962

– Assessment Extract

– CTS Plan and PR card

OR

b) Occupation Certificate / Building Completion Certificate / Approved Change of User
3 Proof of Fire Safety measures:a) NOC from CFO other than Codified Requirement.ORb) Fire (Codified) requirements as per Appendix A and Appendix B.ANDc) Undertaking from the party for compliance of requirements stated above.
4 License, if anya) Bombay Shops & establishmentb) License u/s 394 of the Mumbai Municipal Corporation Act, 1888, if anyc) Permit u/s 390 of the Mumbai Municipal Corporation Act, 1888
5 NOC from Commissioner of Police
6 List of Ancillary commodities

 

Amalgamation of Trade Licenses – u/s 394 of the Mumbai Municipal Corporation Act, 1888:

Serial No. Document
1 Original License.
2 Supplementary License.
3 Application.

 

Change in Constitution of Trade License – u/s 394 of the Mumbai Municipal Corporation Act, 1888:

Serial No. Documents to be Checked Sold out Premises Death of Proprietor Change of Partnership Change of Directors
1 Shop & Establishment certificate duly transferred
2 Dissolution / retirement / New Partnership deed / Sale deed Mandatory Mandatory
3 Death Certificate Mandatory
4 NOC from other legal heirs
5 Memorandum of Article Mandatory
6 Rent Receipt Mandatory
7 Indemnity bond Mandatory
8 Other

 

Duplicate Trade License – u/s 394 of the Mumbai Municipal Corporation Act, 1888:

Serial No. Document
1 Reason for new issuance of licence, if licence is torn : The torn licence
2 In case if the Licence is lost : FIR / N.C.
3 Proof of Identity.a) Railway pass.b) Driving License.c) Voters Identity card.

 

Cancellation/Forfeit of Trade License – u/s 394 of the Mumbai Municipal Corporation Act, 1888:

Serial No. Document
1 Valid Original License.
2 Proof of identity: Voters card OR Driving License OR Railway Pass.

 

Restoration of Trade License – u/s 394 of the Mumbai Municipal Corporation Act, 1888: 

Serial No. Document
1 Fresh NOC / Requirement from CFO.
2 Proof of possession of premises.

 

Source: This information was obtained from http://www.mcgm.gov.in/

 

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