Updated on July 11, 2025 06:11:30 PM
Trade license is one of the most important legal requirements for opening a car dealership in Delhi. The Municipal Corporation of Delhi (MCD), which consists of the NDMC (North Delhi), SDMC (South Delhi), and EDMC (East Delhi), is the official authority that issues a trade license. This license guarantees that your company complies with local laws and ordinances pertaining to urban planning, public safety, and hygiene while enabling you to conduct business lawfully within the city limits.
A trade license is necessary for auto dealers not only to adhere to legal requirements but also to establish credibility and trust with stakeholders and customers. It proves that your company is legitimate, registered, and following the law. Your dealership may be subject to fines, legal action, or even closure if it does not have this license.
With its online platform, the Delhi government has simplified the application process. To register, complete the application, upload the required files, and pay the required amount, go to the official MCD portal. Proof of identity and address, business ownership documents, a fire department NOC, a site plan, and, depending on the size and location of the business, environmental clearance are all necessary documents.
Trade Certificate [Sample]
To start a business with other entities and conduct commercial activities, an entity must adhere to the law and obtain a General Trade License (GTL). An MCD Trade License for car dealer permits them to sell, purchase or trade of commodities and services with compliance with the legal framework. The Trade License for car dealer ensures that the entities abide by the rules established by the MCD authorities so that consumers' can trust the business and the entities hold credibility.
Apart from a trade license for car dealer, Various types and categories of licenses are offered by the Central Licensing & Enforcement Cell (CL&EC) of the Municipal Corporation of Delhi (MCD). To acquire a trade license for car dealer, entities must meet the required criteria and regulations laid down by the MCD authorities.
The Trade License for Car Dealer is to ensure that the businesses are obliged to the laws and regulations set by the MCD authority. Some of the benefits that entities get with a trade license for car dealer are listed below.
Entities who wish to engage in commercial activities without violating laws must acquire a trade license for car dealer by filling out the application form on the official website of the MCD with all the mandatory and specific details for the trade license for car dealer.
Businesses may fill out their personal details in the application form.
The information about the hotel's premises, description and category is to be filled for a trade license for car dealer.
The businesses are required to provide details about property, unit area, address of unit and more.
The application form mandates information about establishment, type of constitution, and partner’s list.
Businesses may upload the required and specified documents as per the application form of general trade license.
The application fee of the general trade license is to be paid by the candidates.
Once the above listed steps are completed, candidates can download the trade license for car dealer through their dashboard by logging .
The required documents that the businesses would need to submit to get a trade license for car dealer are listed below.
The fees charged by the government for a trade license for car dealer is tabulated below and it is categorized as per the localities and size of the infrastructure which will be premised for trades.
| Category | Up to 10 sqm | 10 to 20 sqm | 21 to 400 sqm | Above 400 sqm |
|---|---|---|---|---|
| A and B | Rs 3,968 | Rs 9,919 | Rs 166/sqm | Rs 83/sqm |
| C and D | Rs 2,645 | Rs 6,613 | Rs 132/sqm | Rs 66/sqm |
| E, F, G, and H | Rs 1,323 | Rs 3,306 | Rs 99/sqm | Rs 50/sqm |
Note: Professional Fees to apply for Trade License for centeens is Rs 7500 exclusive of GST.
Learn about the penalties that the business who do not possess a trade license for car dealer, or disobey the set rules or continue to trade with an outdated trade license for car dealer may face:
Conclusion
Businesses can commit transactional activities and deal with other entities with adherence to the legal framework after obtaining a trade license for car dealer. Businesses are required to possess a trade license for car dealer to ensure credibility and gain consumer trust. The MCD Trade License for car dealer ensures that the businesses operate legally to conduct any financial activities, including trading, buying, or selling of commodities and services. The trade license for car dealer is to be renewed after its validity of three-year is expired to avoid penalties and legal consequences.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
Frequently Asked Questions
Businesses are required to get a general trade license for car dealer in Nehru Place, Connaught Place, Khan Market, Defence Colony, South Extension, Vasant Vihar, Greater Kailash, Saket, South Delhi and more places in Delhi.
Businesses operating without a valid trade license for car dealer might face appropriate legal actions under certain circumstances, and face imposition of fines, penalties, or potentially permanent closure.
Yes, the MCD authorities can revoke or suspend a trade license for car dealer if the business is found violating the set guidelines or causing disturbances in the immediate zone.
A trade license for car dealer is mandatory to operate a business within a legal framework. It ensures that the business satisfies health and safety standards set by the MCD authority.
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