Navigating Licenses in Telangana: Is a Trade License Needed Alongside a Factories License?

We are a Pharma Company in Telangana. We obtained a Factories License from the Department of Factories. The Local Municipality authorities have informed our company to obtain a Trade License. Please clarify whether a Trade License is mandatory despite having a Factories License? Please guide me through this.

Factory License and Trade License Requirements

If you are manufacturing a product and running a factory for manufacturing purposes, you may require permission from the Inspectorate of Factories in the form of a license, which is called a Factory license.

What is a Trade License?

A trade license is a document/certificate that grants permission to the applicant (the person seeking to open a business) to start a specific trade or business in a particular area/location. However, the license does not permit the holder to engage in any other trade or business apart from the one for which it was issued.

Thank you for educating me on this. So, is it mandatory to take a trade license? I already have a Factory License.

You may obtain information, if needed, under the RTI Act about the law under which the license is required.

Understanding Trade and Factory Licenses

Trade license is the primary document used to identify any establishment by name and address. It is issued by the local municipal body in urban areas and by the panchayat in rural areas. This tax is collected by the municipal body for the use of premises for commercial purposes and disposal of waste from such establishments. All establishments engaged in any type of commercial activity must obtain a trade license, as it serves as the primary proof of the existence of the establishment.

Factory License Requirements

On the other hand, a factory license is required for establishments where 10 or more persons work in a location where electrical power is utilized. Not all trade license holders may have a factory license, but all factory license owners must obtain a trade license.

Clarity on the necessity of a trade license for an export manufacturing pharmaceutical industry

The necessity of a trade license for an export manufacturing pharmaceutical industry has not been discussed. Please explain with full details.