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In India, to conduct business that deals in goods and services that affects the health of consumers at large, the government mandates the obtaining of Health Licenses. Primarily there are two kinds of licenses

  • Health Care License
  • Health Trade License

Health Care Licenses are issued to the entities dealing in medical care to provide assurance of authenticity.

Health Trade Licenses are issued by municipal corporation. This license works like a certificate permitting the operating of the business engaging in goods and services that directly affect the health of the general public.

The licenses must be obtained by the entities prior to the commencement of business. The various businesses that require this license are ice factories, eating houses like restaurants, cafes, sale of milk and milk products, medical shops, manufacturing drugs, and so on.

Reason For The Issue Of Health Trade License

The primary reason for the issue of the license is ensuring that the health of the public availing the various goods and services is taken care of. For all businesses dealing with goods or services that involve the consumption of food, medicines, or any goods that are ancillary to the food or medicine business, the license is mandatory. Similarly, for services affecting the health of consumers, the license is mandatory. This license is an assurance that the hygiene and safety norms are being complied with.

Obtaining Of Health Trade License

The process for obtaining the Health Trade License is relatively simple. However, the process varies from state to state as the municipal corporations of the state are responsible for the issue of these licenses.

The process is an online process, and an applicant must visit the website of the concerned state’s municipal corporation. The next step is to fill up the application and submit the application in the prescribed manner as provided in the respective Act with all the relevant documents.

On submission of the application, the same will be scrutinised, and the license will be issued and approved by the Senior Inspector of the License Department of Municipal Corporation within a period of 60 days.

Documents For Obtaining The Health Trade License

  • Payment proof of property taxes, fines, etc
  • PAN/TAN
  • Site/layout sanction plan
  • Plan of premises
  • Proof of ownership
  • The latest copy of electricity and water bills
  • Medical certificate
  • Self declaration
  • NOC from the commissioner of police/fire services department
  • List of ancillary commodities
  • Water testing report
  • Sewer connection proof

Mandatory Documents For Health Trade License Renewal

  • Copy of original Health License
  • Identity proof of partners
  • Proof of payment of property tax paid on premises
  • Challan for the previous year

Eligibility Criteria For Obtaining Health Trade License

To obtain the license, the applicant must be 18 years of age and above, must have a clean record and own a business which is permitted legally.

Procedure for Registration of Health Trade License

The step-by-step procedure for registration of Health Trade License is as follows:

  • Visit the respective website. For example, in Maharashtra, the applicant must log in to this website (www.mcgm.gov.in).
  • The next step is to fill up all the details of the application form for Health Trade License like applicant status, address of premises, type of business activity, residential address of the owner.
  • Next, the applicant must attach all the relevant documents like PAN, Aadhar Card, Partnership Deed in case of a partnership, Certificate of incorporation/list of directors in case of companies, NOC from the landowner, Occupancy certificate of premises and so on.
  • An OTP will be generated on the applicant’s mobile number.
  • The applicant must pay the fees due for processing of the application.
  • The verification of the application will be conducted by the municipal corporation.
  • On completion of the verification, the applicant will be informed about the issue of license.
  • The applicant must pay the license fees.

Renewal of License

The licenses are issued for a defined period, and the renewal date is also mentioned in the license. The applicant must apply for renewal of the license prior to 30 days from the date of expiry. In cases where the license restoration process is postponed, fine will be processed.

Fees For Obtaining The License

The fees for obtaining the license varies and depends on the state municipal corporation and the business for which the license is sought. There is a scrutiny fee for the accommodation of New Health License in India.

Penalty For Non-Compliance

In case a business owner starts business operations without obtaining the Health Trade license, then the government will impose penal provisions in the form of fees and penalties. It can also lead to the shutdown of business operations. Hence the license must be obtained prior to commencement of business or else it can lead to penalties and even shutdown.

The Health Trade License is one of the primary licenses which is needed for conducting a business in the health department. It makes the business more authentic and trustworthy for the consumers and investors as well.

Disclaimer: The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state.

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