Updated on June 23, 2025 05:49:01 PM
Are you considering launching a company in Mumbai? Getting a trade license from the Municipal Corporation of Greater Mumbai (MCGM) is a legal necessity whether you are opening a store, restaurant, clinic, factory, or any other type of commercial establishment. This license guarantees that your company does not endanger public health or safety and conforms to local regulations.
Under the Mumbai Shops and Establishments Act, the BMC (Brihanmumbai Municipal Corporation) grants trade licenses to control business operations in the city. You can legally conduct your chosen business operations within the city limits thanks to the license, which serves as a formal approval.
Business owners must provide certain documents, including proof of identity, proof of business address, ownership/rental agreement, and information about the business activity, in order to apply for a trade license in Mumbai. The BMC portal allows for online application submission, which streamlines and increases the transparency of the process.
In Mumbai, a trade license typically lasts for a year and needs to be renewed every year. The business may be subject to penalties, fines, or closure if it is not renewed on time.
Trade Certificate [Sample]
A General Trade License (GTL) in Mumbai is a permit that allows them to execute commercial operations or engage in business with other entities with adherence to the legal framework. The Trade License in Mumbai allows the businesses to sell or purchase or trade commodities and services with accordance to the legal framework. The Trade License in Mumbai ensures that the businesses comply with the specific guidelines to assure trust and credibility for the consumers set by the BMC authorities. Apart from a trade license in Mumbai, the Brihanmumbai Municipal Corporation (BMC) also has licenses for different categories to offer. Businesses have to meet the required criteria and standard regulations of the authorities to be issued with a trade license in Mumbai.
The Trade License in Mumbai ensures that the businesses comply with the laws and regulations set by the BMC authorities. Some of the benefits that businesses can redeem with a trade license in Mumbai are listed below.
Entities who want to conduct monetary business must acquire a trade license in Mumbai by filling out the application form on the official website of the authorities with all the mandatory and specific details for the trade license in Mumbai.
Businesses may fill out their personal details in the application form.
The information about the establishment's premises, description and category is to be filled for a trade license for hotels.
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 trade license in Mumbai is to be paid by the candidates.
Once the above listed steps are completed, candidates can download the trade license in Mumbai through their dashboard by logging .
The required documents that the businesses would need to submit to get a trade license in Mumbai are listed below.
The table below displays the fee that is charged by the government for a trade license in Mumbai and it is categorized as per the localities and size of the infrastructure which will be premised for trades.
| Locality | ≤10 sqm | 10–20 sqm | 21–400 sqm | >400 sqm |
|---|---|---|---|---|
| A, B | ₹3,968 | ₹9,919 | ₹166/sqm | ₹83/sqm |
| C, D | ₹2,645 | ₹6,613 | ₹132/sqm | ₹66/sqm |
| E, F, G, H | ₹1,323 | ₹3,306 | ₹99/sqm | ₹50/sqm |
Note: The trade license for special categories have a different fee structure.
Learn about the penalties that the business who do not possess a trade license in Mumbai, or disobey the set rules or continue to trade with an outdated trade license in Mumbai may face:
Conclusion
A trade license in Mumbai permits the businesses to deal in commercial business with other entities and commit to transactional activities within the legal framework. A trade license in Mumbai is necessary in order to ensure consumer trust and hold the entities credible. The Trade License in Mumbai is to ensure that the businesses are complying with the law prior to conducting financial transactions such as sale, purchase, or trade of commodities and services. Once the three-year validity of the trade license in Mumbai has expired it is to be renewed in order to avoid penalties by Brihanmumbai Municipal Corporation (BMC).
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
A Trade License in Mumbai is necessary to legally operate and engage in business transactions. The Trade License in Mumbai ensures compliance with the laws and regulations set by the Brihanmumbai Municipal Corporation (BMC).
You can apply for a Trade License in Mumbai online through the official website of the authority. Fill out the application form with the required personal, property, and establishment details, upload the necessary documents, and pay the application fee.
Any business that continues to operate without renewal of trade license in Mumbai, will be imposed fines and penalties as punishment by the Brihanmumbai Municipal Corporation (BMC) authorities.
Identity proof such as Aadhar card, voter ID, PAN card, passport, driving license, Photograph of the establishment, Proof of legal occupancy such as tenancy proof, electricity/ water bill, lease deed and more.
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