In Indore, Madhya Pradesh, the Trade License, primarily issued by the IMC, is generally categorized based on the nature of the business and the associated risk/activity.
While the IMC's official categorization uses specific "Trade Codes," they broadly align with the following types for different business activities:
1. General and Commercial Trade (Type A / General Trade License - GTL)
This category covers most commercial and retail activities, focusing on compliance with local municipal rules for general business operations.
- Shops and Establishments: For retail stores, offices, and commercial establishments. Note that a separate Shop and Establishment License under the Madhya Pradesh Shops and Establishments Act is also required. This registration governs employee working conditions, wages, and related regulations. It applies to all shops and commercial premises, including those operating from residential properties.
- Educational / Training Institute License: For schools, coaching centers, and vocational institutes, confirming compliance with local educational and safety norms.
- Transport & Logistics License: For courier, freight, and logistics businesses operating commercially within Indore's jurisdiction.
- Home-Based Business License: For businesses run from residential premises, ensuring adherence to local zoning and safety regulations.
- E-Commerce / Online Business: While the core operations are digital, businesses operating an office, warehouse, or fulfillment center within the city must obtain the relevant trade license for that physical premise/activity.
Read more about the license from the blog - “Trade License for Online Business”
2. Food-Related Trade (Type A / Health Trade License - HTL)
Businesses handling food or consumables must obtain a health trade license to ensure optimal hygiene, health, and food safety standards.
Food and Health Trade License (Type A): Mandatory for restaurants, hotels, bakeries, food stalls, cafés, and other food service establishments.
- This license (sometimes referred to as a Health Trade License or HTL by the GMC/ULB system, or Type A by some consultants) is specifically issued by the IMC's Health Department.
- It operates in addition to the FSSAI license, issued by the Food Safety and Standards Authority of India. This license is mandatory for all Food Business Operators (FBOs) based on turnover and scale, Basic, State, or Central FSSAI License.
3. Industrial Trade (Type B / Industrial Trade License - ITL)
This covers manufacturing units, factories, and workshops, with a strong emphasis on regulating power consumption, safety, and environmental impact.
- Industrial Trade License (Type B): For units involved in manufacturing, processing, and assembly. This category often applies to businesses that utilize machinery and electricity for production.
- It ensures adherence to municipal safety, structural, and pollution control norms.
- Environmental / Industrial Waste License: Industries in Indore that generate industrial waste, effluents, or emissions must obtain Environmental Clearance. They also need a waste management license from the Madhya Pradesh Pollution Control Board (MPPCB). This ensures compliance with environmental norms and pollution control regulations.
4. Dangerous / High-Risk Trades (Type C / Special Trade License)
This covers activities that are inherently high-risk, potentially hazardous, or require stricter regulatory oversight due to public health or safety concerns.
- High-Risk Manufacturing (Type C): Issued for high-risk activities like the production of fireworks, storage of hazardous materials, or operating wood/timber structures.
- Liquor / Beverage Trade License: Bars, liquor shops, breweries, and establishments serving alcohol require a liquor license under the State Excise Act, which is separate from a general trade license.
- Medical & Pharmaceutical Trade License: For clinics, hospitals, pharmacies, and medical supply stores, ensuring adherence to health, safety, and drug/pharmacy laws (which are often governed by state Health Departments and Drug Control Authorities).
- Entertainment License: Required for cinema halls, event venues, and amusement centers, confirming compliance with municipal safety and public entertainment norms.
- Import/Export Trade License: For businesses involved in international trade, obtaining an Import Export Code (IEC) License from the DGFT is mandatory. The IEC license enables legal import and export of goods while ensuring compliance with customs and state trade regulations.
- Renewal & Modification License: Required when updating business operations, location, or ownership details with municipal authorities.