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Mon, Oct 13 2025
Raju Karn
Running a business in Delhi requires more than just an idea and capital — you also need the right government permissions to operate legally. One of the most essential permissions is a Trade License. It is issued by the Municipal Corporation of Delhi (MCD) to ensure that businesses comply with health, safety, and regulatory standards.
In this complete guide, we’ll explain what a trade license is, why it’s important, the step-by-step registration process, renewal procedures, fees, documents required and how PSR Compliance can help you obtain your trade license quickly and smoothly.
A trade license is an official certificate that allows you to carry out specific business activities at a particular location. It ensures that your business doesn’t pose any health hazard, environmental risk or inconvenience to the public.
The Municipal Corporation of Delhi (MCD) issues this license under the Delhi Municipal Corporation Act, making it mandatory for every trader, manufacturer, or service provider to obtain before starting operations.
Any business involved in trading, manufacturing, or commercial activities within the Delhi region must apply for a trade license.
Common examples include:
▪️ Restaurants, food outlets, bakeries, and cloud kitchens
▪️ Shops, showrooms, and retail stores
▪️ Factories and small manufacturing units
▪️ Gyms, salons, spas, and fitness centers
▪️ Warehouses, logistics hubs, and cold storage facilities
To apply for a trade license online in Delhi, you need to keep the following documents ready:
▸ Identity proof (Aadhaar, PAN, or Voter ID)
▸ Address proof of the applicant
▸ Proof of business ownership (Rent Agreement or Property Tax Receipt)
▸ Layout plan of the business premises
▸ NOC from the property owner (if rented)
▸ Certificate of Incorporation / Partnership Deed (for registered businesses)
▸ Electricity or water bill copy
▸ Occupancy certificate, if applicable
Here’s a step-by-step process to apply for a trade license online through the MCD portal:
Step 1: Visit the MCD official website Go to https://mcdonline.nic.in and navigate to the Trade License section.
Step 2: Fill in the application form Enter details such as business name, type, address, and category.
Step 3: Upload documents Attach all the required documents in the prescribed format.
Step 4: Fee payment Pay the trade license registration fee online through the MCD portal.
Step 5: Verification by MCD authorities The municipal officer verifies the details and may conduct a short inspection.
Step 6: Issuance of Trade License Certificate Once approved, you can download your trade license directly from the MCD portal.
A trade license is valid for one year and must be renewed before the expiry date.
The renewal of trade license can also be done online through the same portal. The process includes:
✓ Logging in with your registered ID
✓ Selecting the “Trade License Renewal” option
✓ Uploading updated documents (if required)
✓ Paying the renewal fees
💡 Note: Delays in renewal may attract penalties, so it’s recommended to complete trade license renewal at least 30 days before the expiry.
You can check the status of your application or download your certificate using the “Application Status” option on the MCD website.
Simply enter your application number or registered mobile number to view details like approval status and validity.
The fees for trade license registration or renewal vary depending on:
➡️ The type of business activity
➡️ The size of the establishment
➡️ The location of the business
Typically, the trade license fee in Delhi ranges from ₹500 to ₹5,000.
PSR Compliance can help you calculate your exact fee and file the license without errors.
Although this guide focuses on Delhi, trade license requirements are similar across major cities in India like:
✔️ Kolkata Municipal Corporation (KMC) – KMC Trade License
✔️ Greater Hyderabad Municipal Corporation (GHMC) – GHMC Trade License
✔️ Bruhat Bengaluru Mahanagara Palike (BBMP) – BBMP Trade License
Each city has its own rules, fees, and timelines for online trade license renewal.
A trade license is not just a formality — it offers several benefits:
✅ Legal Recognition: Helps you run your business legally.
✅ Customer Trust: Builds credibility among clients and vendors.
✅ Compliance Assurance: Prevents fines, penalties, or business closure.
✅ Ease of Expansion: Facilitates easier loan and registration approvals.
Even a minor error can lead to rejection. Here are common mistakes to avoid:
❌ Submitting incomplete or invalid documents
❌ Incorrect business categorization
❌ Non-compliance with local safety norms
❌ Delay in renewal submission
At PSR Compliance, we ensure your documentation is complete, accurate, and fully compliant with MCD regulations.
At PSR Compliance, we specialize in obtaining, renewing, and managing trade licenses for businesses across India.
Our experts help you with:
✅ Eligibility check and documentation
✅ Application submission on MCD portal
✅ Coordination with government officials
✅ Renewal and modification support
Whether you’re a new entrepreneur or an existing business, PSR Compliance ensures your license is approved smoothly so you can focus on growing your business.
Yes. Every commercial establishment in Delhi must have a valid trade license issued by MCD before starting operations.
Yes. You can apply online via https://mcdonline.nic.in.
Operating without a valid license can lead to penalties, closure, or legal action.
Absolutely. PSR Compliance assists with both new license applications and renewals across Delhi and other cities.
Getting a Trade License in Delhi is a legal requirement that every business owner should prioritize. With the growing emphasis on compliance and transparency in 2025, it’s essential to register or renew your license on time. If you’re looking for expert help, PSR Compliance offers complete end-to-end assistance for trade license registration, renewal, and compliance management across India.