Trade Licence: Who Needs One, Fees and Renewal

A trade licence is permission from your city’s municipal body to run a particular business from a particular premises. There is no national fee: each corporation sets its own rates by type of trade and, often, by floor area. Most licences run for a financial year and must be renewed every year.

The rules below come from the municipal portals of Delhi, Kolkata and Hyderabad. Other cities follow their own municipal Acts, so check your corporation’s website for the exact fee.

Key facts

What a trade licence covers

The licence ties three things together: the person or firm, the trade, and the address. GHMC defines it as a licence issued by the local authority to run a listed business within its limits. If you move premises, add a new line of trade or enlarge the space, you usually need a change or a fresh licence.

It does not replace other registrations. A restaurant also needs FSSAI registration or a licence, and most businesses need GST registration once they cross the threshold. Udyam registration is separate again and free.

Who needs one

Anyone running a commercial activity from a premises inside a municipal area generally needs one: shops, salons, clinics, eateries, workshops, godowns and offices. MCD says it is mandatory for all traders and establishments in its area to obtain a trade or storage licence under Section 417 of the DMC Act.

Some cities split the licence by type. Delhi issues a separate Health Trade Licence for eating houses, lodging, gyms and other public-health trades, alongside the general trade licence. Hyderabad’s application sorts trades into eating establishments, medical, veterinary, dangerous and offensive trades, and general offices.

Documents required

The core set is similar everywhere:

Delhi’s property tax route asks for a photograph, address proof of the trade (rent agreement or electricity bill), a photo of the front fascia, the area in square metres and a description of each trade.

Applying online with your municipal body

Delhi

1. Open the MCD property tax portal and pay the property tax for your premises.
2. Choose the General Trade/Storage Licence option and state whether you own or rent (the owner’s UPIC number is needed).
3. Enter the trade details, area and number of trades, and upload the photographs and address proof.
4. Pay the licence fee of 15% of the total property tax.
5. Download the receipt; MCD treats it as a valid licence under Section 417.

Licences issued on the old mcdonline.nic.in/gtlmcd portal stay valid until they expire. That portal now handles only amendments, disputes and defaulter recovery.

Kolkata

1. Go to kmcgov.in and open CE (Certificate of Enlistment).
2. Choose Online Application Registration (For New CE).
3. Fill in the trade, premises and owner details and upload the occupancy proof.
4. Track it under Online Application Search Status.
5. For renewal, use Check Demands Payable and Make Online Payment, then Reprint e-Receipt cum CE.

Hyderabad

1. Register on trade.ghmc.gov.in and log in.
2. Enter the property tax number, ward, locality and address.
3. Choose the trade category and sub-category, and enter the plinth area and road type.
4. Upload the ID proof, lease deed or occupancy document (under 5 MB) and a photo of the trade.
5. Pay online; the licence is issued instantly with a Trade Licence Identification Number (TIN).

In Bengaluru, renewals are made through BBMP’s trade licence portal (trade.bbmpgov.in). We could not confirm the current Bengaluru fee and penalty schedule from an official page, so check the portal before paying.

Fees, renewal and penalties

Kolkata sample fees for 2026-27

KMC publishes a chart by nature of trade. A few examples, each including the ₹100 processing fee:

KMC gives a 50% rebate to small scale and IT industries, and to unemployed youths and self-help groups; companies and LLPs get no rebate. A late fine of ₹50 a month applies after the date in the demand notice. If you never took a certificate, KMC charges the current year plus up to three past years, without a late fine. A certificate not renewed on time may be treated as lapsed, but you can revive it by paying the arrears.

Delhi

A general trade licence is valid for one financial year, up to 31 March. Under MCD’s February 2025 circular, you can renew from 1 to 30 April without penalty; after that a penalty of 5% a month applies, doubling at the end of the year. The same circular raises fees by 15% every three years from 1 April 2025. Special trade and storage licences for showrooms, warehouses and godowns carry separate, higher rates.

Hyderabad

The fee depends on the trade, the plinth area and the type of road your premises faces. A 2019 GHMC resolution removed the maximum ceiling on the fee. Use the portal to see the amount for your premises.

After you get it

• Display the licence at the premises; inspectors may ask for it.
• Download a copy any time: Delhi’s receipt from the property tax portal, Kolkata’s e-Receipt cum CE, and Hyderabad’s certificate through the certificate search with your receipt number and TIN.
• Apply for a change when the name, trade or area changes, and surrender the licence when you close.
• Keep property tax up to date, since Delhi now collects the licence fee with it. Our Kolkata property tax guide covers KMC’s tax side.

Frequently asked questions

What is a trade licence?

It is a permission from your municipal corporation to carry on a specific trade at a specific address within its limits. It is usually valid for one financial year.

How much does a trade licence cost?

It depends on the city, the trade and the area. In Kolkata, a garments shop up to 500 sq ft pays ₹350 plus a trade charge for 2026-27; in Delhi, the general licence fee is now 15% of the property tax.

How do I renew my KMC trade licence?

On kmcgov.in, open CE, use Check Demands Payable, pay online and reprint the e-Receipt cum CE. A ₹50 monthly late fine applies after the demand-notice date.

How do I renew a trade licence in Delhi now?

Since 23 June 2026, pay the licence fee of 15% of your property tax on MCD’s property tax portal; the receipt works as the licence.

How can I download my trade licence?

Use your city portal: the property tax receipt in Delhi, Reprint e-Receipt cum CE in Kolkata, or certificate search with your receipt number and TIN in Hyderabad.

Can I apply for a trade licence online?

Yes, in Delhi, Kolkata, Hyderabad and Bengaluru the application, payment and certificate are all online.

Is a trade licence the same as FSSAI or GST registration?

No. The trade licence comes from the municipal body; FSSAI covers food safety and GST covers indirect tax, and a business may need all three.

Sources

• General Trade/Storage Licence portal — Municipal Corporation of Delhi (checked 16 Sep 2026)
• Order on GTL fee through property tax portal, 15 May 2026 — MCD (checked 16 Sep 2026)
• GTL fee structure and penalty circular — MCD (checked 16 Sep 2026)
• SOP for General Trade Licence application — MCD (checked 16 Sep 2026)
• GTL integrated with property tax portal from 23 June 2026 — MCD on X (checked 16 Sep 2026)
• Certificate of Enlistment — Kolkata Municipal Corporation (checked 16 Sep 2026)
• Licence Department rates, fees and charges 2026-27 — Kolkata Municipal Corporation (checked 16 Sep 2026)
• Trade Licence — GHMC (checked 16 Sep 2026)
• Online trade licence application — GHMC (checked 16 Sep 2026)