Trading/Business License: What Is It?
Licensed traders or businesses may conduct their businesses within the government’s geographical jurisdiction with the help of a license issued by the government. This allows people who want to start a business to do so legally. In most countries, states, and local municipalities, trade licenses differ according to the various taxes imposed in that jurisdiction, which explains why trade licenses vary between countries, states, and local municipalities. Licenses are usually determined by a company’s business activity and physical location (address).
The Kolkata Municipal Corporation Act 1980 Certificate of Enlistment
In Kolkata, a person must obtain a Certificate of Enlistment, which is equivalent to a trade license.
According to section 199 of the Kolkata Municipal Corporation Act 1980, the licence department grants certificates of enlistment based on a schedule of rates, fees, and charges approved by the corporation. It is the license department of the Corporation which processes applications and collects fees/charges in accordance with the said section of the Act.
- Those engaged in or intending to engage in any profession, trade, or calling in Kolkata, as specified in Schedule IV, either by themselves or by their agents or representatives, must obtain a certificate of enlistment or renew the same annually from the Municipal Commissioner upon submitting an application in the form specified by the Commissioner, together with the application…”
How to Obtain a Trade License in Kolkata?
Basically, an application needs to be filled out, and along with this form, a few supporting documents must also be provided to substantiate such an application.
Provide the Following Documents
It depends on the type of business that needs to be established and additionally, on the location of the business that needs to be established, which documents are required.
- If owned by petitioner, tax bill must be provided;
- In the case of a tenant, a rent bill must be provided;
- In the case of a lessee, the lease-deed must be produced;
- A consent letter from the premises owner is required if a relative/person is granted free accommodation by the owner;
- If a bonafide tenant grants rent-free accommodation to a person, the tenant’s consent letter must be produced along with their current CE;
- In the case of a sub-tenant, the consent of the premises owner will also be required along with the documents mentioned above. Original tenant’s rent bill, current CE, etc.
- A CE may also be issued on the spot by License Department Officials if any trade, profession, or calling is performed without a license.
To produce the Partnership deed if the firm is a partnership.
In addition to the form and documents, one must submit an affidavit/declaration stating that the certificate of enlistment will be revoked in the event of discrepancies or illegal activities on the part of the applicant or company. For such declarations, the following format must be followed:-
Within thirty days of receiving the application, the Municipal Commissioner shall make necessary inquiries and either grant or reject the certificate of enlistment.
Kolkata Trade License Renewal Procedure
In order to maintain the continuity of his/her business, a person who has already obtained a trade license must periodically renew it.
Demand notices have been sent by the Corporation since 2003. According to the demand notice, renewal will be done at designated counters upon payment. Therefore, the traders do not have to file any subsequent applications, fill out forms, or submit any documents. Traders benefit from this by saving time and reducing hassle.
The Kolkata Municipal Corporation sends a notice regarding the renewal of trade license payment fees well before the license expires. A deposit of the specified fee must be made at any branch of the specified banks listed in the notice. You can pay either in cash, check, demand draft, or pay order drawn in favor of Kolkata Municipal Corporation. The demand notice will be considered a trade license once payment has been made and the transaction has been completed successfully.
The license department requires certain important documents to be deposited at a special computer cell in case the demand notice is not received. A photocopy of your last paid trade license, as well as a declaration, describing the trade, including the name, address, nature, place, and date of the trade. An additional copy of the demand notice will be sent following the submission of these documents.