MCD License or Trade License

Processing Fee for MCD License

Rs. 500/- processing fees are charged for the application that contains Rs. 50/- handling charges plus service charges. The MCD license fees for the following rates are as follows:-

Category A:- Category A includes all conforming or local commercial areas. Fees are divided according to the square meter occupied.

1. Up to 10 sq. meter Rs. 200/- P.A.
2. From 10 sq. meter to 20 sq. meter Rs. 500/- P.A.
3. Above 20 sq. meter Rs. 50 per sq. meter.

Category B:- Category B includes all non-conforming and household areas. Fees are divided according to the square meter occupied.

1. Up to 10 sq. meter Rs. 200/- P.A.
2. From 10 sq. meter to 20 sq. meter Rs. 500/- P.A.
3. Above 20 sq. meter Rs. 50 per sq. meter.

Introduction

MCD License is an authorization or permits conceded by the municipal corporation authorized departments for carrying a specific business at a specific address. MCD makes sure that there is no adverse effect on citizens by the health annoyance and threats by inappropriate trade carrying. MCD was the preceding municipal corporation that controlled eight of the nine districts of Delhi in India.

MCD License Registration

MCD (Municipal Corporation of Delhi) issues a prevalent MCD License to the business organizations for permission to do trade activities under sec. 2 (59) of the DMC Act, 1957. Every establishment/trader must obtain an MCD license in the jurisdiction of MCD under sec. 417 of DMC Act, 1957.

Why is the need for MCD License in Delhi?

The MCD license is an apparatus that aids a controlling authority in certifying that the locality and mode for operating a business are according to the relevant safety guidelines, standards, regulations, and rules as the government has advice of the particular state. As stated by the government, it becomes essential for obtaining an MCD license to make sure that the individual is not transferring out practices of immoral business & is following the guidelines, safety measures, and relevant rules. A business that is licensed can safeguard its owner in opposition to distinct liability types. In case injury or damage happens, the private finances’ business doings or actions cannot be propped up in any settlement. Numerous types of MCD license provides different protection levels.

The MCD license provision is laid down separately by the corresponding State government to monitor and track the trade in the city. This is allowed by the municipal corporation of the state, the place where the business is situated.

The owner of the business has made a trade license application without taking much time to avoid the inconvenience caused. Before commencing any business activity, an application is mandatory to be made. Some state governments permit 15 days to 3 months for getting an MCD license for conducting any business activity, and the license issued should get renewed annually.

An MCD license is an authorization that authority permits for executing a particular business or trade at the establishment to which the license is for look for. Any unlawful trade streaming is a breach of law that leads to severe penalties.

As discussed above, the MCD license provision is put down by State Government to regulate and monitor the trade in the city. State where business is situated, can issue the license for handling business activities in the commercial areas.

Hence, we will further discuss the MCD License in this article which the Municipal Corporation of Delhi has issued.

Different categories of MCD license

• Food establishment License:- Bakeries, food stall, sale of vegetables and meat, canteen, food stall, hotels, restaurants, etc.
• Shop License:- Offensive and dangerous trades such as barbershop, cracker manufacturer, laundry, candle manufacturer, sale of firewood, etc.
• Industries License:- Large, medium, and small scale factories of manufacturing.

Documents needed for MCD License

• Address proof, ID proof, Pan card, Color photograph of all partners or directors.
• Organisation’s front face photograph with goods traded display from premises.
• NOC, electricity bill, sale deed, and water bill establishment proof of the premises.
• AOA, MOA, and Certificate of Incorporation of the LLP, Partnership agreement, or a company depends on the case.
• Bank statement and canceled cheque of organization.
• In case of Firm registration in Delhi, LLP, or company Pan card is required.

Documents needed for the issue of duplicate MCD license

• Indemnity Bond in the prescribed format.
• FIR (First Information Report)

Documents needed for renewal of MCD license

• Renewal of license application.
• Receipt of old G-8.
• Copy of original license.
• Identity proof and Address proof.

The necessity of MCD License

All the traders employed in the activity of general trading in any state municipal corporation territorial area are needed to obtain an MCD license. The MCD license class is distinct in every state & mainly based on business nature. The motive of the MCD license is to manage locations of the business by putting restrictions on the people from streaming definite types of businesses from homes for maintaining a separate environment of business and conserves locality environment. MCD license can be scheduled for the business purpose only in case the business is managed in the areas such as residential area, mixed land use, notified commercial, local commercial area, or commercial area with tiny shops with maximum square feet of 20 meters which are situated only on the ground floor.

Businesses that Requires MCD License

The business that falls under the given categories should have to obtain an MCD license:-

A cinema, theatre, or some other place of public entertainment or amusement.

A cafe, eating house or boarding, a hotel, or some other refreshment house.

An administrative service or establishment where the individuals are employed or mainly occupied in office work.

Who can apply for an MCD license

The applicants who can apply for an MCD license are given below:-

• The business must be lawfully allowable.
• There should not be any criminal record of the applicant.
• The age of the applicant should be more than 18 years.