A trade license is a document/certificate that gives the permission to the applicant (person seeking to open a business) to commence a particular trade or business in a particular area/location. However, the license does not allow the holder to any other trade or business than for it is issued.

The business entities, who are establishing activities listed in Schedule X of Karnataka Municipal Corporation Act, are mandatorily required to obtain Trade License from Bruhat Bengaluru Mahanagara Palike (BBMP), Bangalore. Food and Food processing. Hotels and Restaurants.

This license has been made mandatory by the government to ensure that no one is carrying the illegal or unethical business practices in a particular area or locality. ... Proprietorship business requires obtaining a trade license to run their business in a smooth way..

Trade license is a permit issued by a municipal corporation granting permission to a person or entity to carry particular business at a specific premise. It ensures that the citizens are not adversely affected by health hazards and perils brought forth by the improper conduct of trade.