Procedure for Health Trade License Renewal – An Overview

Health Trade License in India serves as work authorisation for businesses or entities that trade products & services that affect customers’ health in some way. Before commencing a business, the companies or entities must get a License. Hotels, guest houses, cinemas, beauty shops, temporary markets, food sellers, gas pumps, dry cleaners, tea shops, etc., are all required to obtain a Health Trade License. The main reason behind obtaining Health Trade License is to safeguard the customer’s health who purchases various products & services. But, before the expiry of the License, the applicant needs to file an application for Health Trade License Renewal to continue the License. In this write-up, we will discuss Health Trade License Renewal.

Importance of Health Trade License

Before we discuss Health Trade License Renewal, let’s talk about the importance of a Health Trade License. The primary reason for issuing Health Trade License is to make sure that the health of the public is safeguarded when using various products & services. The Health Trade License is needed for all entities that deal with products or services that require medication, food consumption, or other products that assist the food or medical business. A License holder is required for services that affect the health of the customers, and this License guarantees that all hygiene & safety regulations are followed.

What are the Benefits of a Health Trade License in India?

The following are some benefits of a Health Trade License in India:

1. This License protects owners by other forms of liability;
2. Strengthen trust among the target customers;
3. It draws the attention of investors & buyers;
4. Provide a better framework for safety & hygiene within the workplace;
5. Make businesses more competitive & credible.
6. A registered business entity gains more popularity than an unregistered one.

Eligibility Criteria for Health Trade License

The following are the eligibility criteria for obtaining Health Trade License in India:

1. Legally Permissible Business: The applicant’s profession must be legally approved.
2. Age: The applicant’s age should be 18 years or above.
3. No Illegal Record: Ensure that the applicant doesn’t carry any past burden of illegal practice.

Documents Required for Obtaining the Health Trade License

Following are some crucial documents required for Health Trade License:

1. Proof of business location like Rent Agreement, Lease Agreement, Landline Bill, Telephone Bill, Water Bill, Sale Deed, etc.,
2. A copy of self-attested identity & address proof of each partner, director or proprietor;
3. A copy of the GST Certificate of the Company or Establishment;
4. Photographs of all owners, partners, or directors;
5. A copy of the PAN Card of the Company or Establishment;
6. Bank Statement and cancelled cheque of the Establishment or Company;
7. A product description with which the Company deals.

Procedure for Obtaining Health Trade License

The process of getting a Health Trade License differs state-wise, as the Municipal Corporations of the particular State have the right to issue this License. Following is the process of getting a Health Trade License:

1. First, the applicant or the business owner needs to visit the official portal of the Municipal Corporation of the respective State.
2. Then, fill out the application form for Health Trade License with all the requisite details, including premises address, applicant’s status, type of Company activity, and owner’s residential address.
3. The applicant must attach vital documents like PAN Card, Aadhar Card, Partnership Deed in the event of a Partnership, Incorporation Certificate or List of Directors in the case of a Company, Occupancy Certificate of the premises, NOC from the landowner, etc.
4. After, the applicant needs to pay the fees associated with the application.
5. Then, the Municipal Corporation_[1] will verify the application.
6. After the verification, the applicant will be notified regarding the issuance of the License.

Health Trade License Renewal in India

The permits are issued for a specific time period; the License also specifies the date of renewal. Before the license expiry, the applicant must apply for the renewal within 30 days. A fine will be processed in conditions where the License restoration process is postponed.

The License holder is required to apply for Health Trade License Renewal before the expiry of the same so as to continue with operations of the business legally. For Health Trade License Renewal, the following documents are required:

1. Copy of the original Health Trade License;
2. Identity proof of the applicant;
3. Previous year challan;
4. Payment proof of property tax paid on-premises.

Non-Compliance Penalty

If the owner of a business starts operations without first getting a Health Trade License, then the Government will apply heavy penalties in the form of fines & fees. It may also result in the closure of a business. As a result, the License must be attained prior to the start of business or face heavy penalties & even closure of a business.

Conclusion

Even the Health Trade License is a legal mandate; it also provides several benefits to business owners. Having this License makes the business more credible & competitive as it confirms that the products or services provided are hygienic and as per the safety norms. The Health Trade License aids businesses in building trust among the target consumers & draws the attention of buyers & investors. It also facilitates the formulation of a better framework for maintaining & hygiene standards within the business premises. Hence, it is advisory for all business entities to get this License.