What is MCD Health Trade License?

Health licenses are compulsory for businesses that deal in goods and services that largely affect the health of consumers in India. There are two types of health licenses. One is Health Care License, and the other one is Health Trade License.

For those entities that deal in medical care, it is mandatory to get health care license since it permits the entities to operate legally. On the other hand, health trade license, used by the municipal corporation, is mandatory for businesses to engage in goods and services that directly impact the health of the general public. It is necessary for these licenses to be obtained by the entities in advance before they start their operations. Section 2 (59) of Delhi Municipal Corporation Act (DMC), 1957 makes it compulsory for companies to get MCD Health Trade License, which is necessary for trading, manufacturing, store, restaurant and food supply.

Businesses requiring MCD Health Trade License

According to the rules and regulations stated under Delhi Municipal Corporation Act, 1957, certain businesses are required to obtain MCD Health Trade License in order to avoid penalties. The list of such businesses is mentioned below:

• Furniture Shops
• Marble Stone Retailing Shops
• Food Vending Establishments
• Hotels and Guest House
• Milk and Milk Products Manufacturing and Retailing Shops
• Gym and Spa Clubs
• Salon and Beauty Parlors.
• Confectionery Shops
• Fruit Juice and Ice cream Parlour
• Catering Shops
• Mobile and Electronics Shops
• Shoe and Clothing Shops.
• Stationery and Books Selling Shops.
• Restaurants
• Cyber Cafes and Coffee Café etc.

Must read: How to Start a Restaurant Business?

Need for obtaining MCD Health Trade License

This license is more than just paperwork, it is a permit which certifies that the health of people, who avail different types of goods and services, is taken care of. This license is a compulsion for all the businesses that are involved in dealing with goods or services involving the food consumption, medicines, or goods that are necessary for food or medicines business. In the same way, this license is mandatory for services that impact the consumers’ health. This license assures that the business will comply with the hygiene and safety norms because they’d fear license cancellation.

Steps for obtaining MCD Health Trade License

Obtaining a Health Trade License by the Municipal Corporation of Delhi is a relatively simple process. Follow these steps to apply for MCD Health Trade License or MCD Trade License in Delhi:

• Visit the official website of Municipal Corporation of Delhi (MCD) and fill up all the required details of the application form for Health Trade License such as applicant status, premises address, type of business, and the residential address of the applicant who is the owner.
• Attach all the necessary documents such as PAN Card, Aadhar Card, No Objection Certificate in case the applicant isn’t the landowner, partnership deed if the applicant has a partner, certificate of the incorporation of the company, list of directors in the company, occupancy certificate of the premises, etc.
• Once done, an OTP will be generated on the mobile number of the applicant.
• Afterwards, the applicant is required to pay an application fee.
• Once the application is submitted along with the fee, MCD will examine and verify the application and documents.
• Once the verification process is completed, the application will get a notification about the license issuance for which license fee has to be paid.

Applicant who applies for a health trade license for the first time can only receive it along one year’s validity. After the first year, the applicant can apply for renewal of the license for up to five years.

Documents For Obtaining The Health Trade License

• ID Proof and Address Proof of the applicant.
• PAN or TAN
• Proof of the payment of the property taxes.
• Floor plan and plan of premises related to the business.
• Memorandum of Association (MOA), and Article of Association (AOA) are also required in case the applicant is a company.
• List of the names of all the active directors.
• NOC from the landowner.
• Proof related to the electricity or water bill.
• Medical certificate and water testing report granted by a certified lab.
• NOC from the commissioner of the police.
• NOC from the fire service department.
• Proof related to the sewer connection.
• List of all the ancillary commodities used by the business owner.
• Challan of the payment of the license fees.
• If the business is in partnership, then partnership deed, ID Proof and Address Proof of the partners
• Passport size photographs of all the partners.
• Self-declaration of the owner and his or her partners.
• Passport size photograph of the business owner.
• Tenancy Proof of the place where the business has been operating.

Mandatory Documents For Health Trade License Renewal

• Original Health License’s copy
• Identity proof of partners involved in the business (PAN card, Aadhar Card, etc.)
• Proof of payment of property tax paid on premises
• Previous year’s challan

Eligibility Criteria For Obtaining Health Trade License

To obtain the license, the applicant should meet the following criteria:

• A person must own a business that involves the health of the public at large.
• Applicant must be of the legal age i.e., 18 years.
• Applicant must not be underage.
• Applicant should not have a criminal background.
• Documents must be authentic and not forged. 

The Municipal Corporation of Delhi (MCD) has three divisions for issuing and controlling health trade licenses to all Delhi religions, namely:

• East Delhi Municipal Corporation (EDMC) Authority for Eastern Region in Delhi
• North Delhi Municipal Corporation (NDMC) Authority for Northern Region in Delhi 
• South Delhi Municipal Corporation (SDMC) Authority for Southern Region in Delhi

Penalties in case of Non-Compliance

In case of a business which is operating without a health trade license, the government will impose penalty and fine on it. In some cases, businesses can also be shut down. Therefore, it is absolutely necessary to obtain this license before starting a business to operate legally. Health trade license is a basic need for working in the health department. Obtaining this license can also help build trust of consumers and investors and make the businesses seem more genuine.

Conclusion

Health Trade License is a legal permit which allows businesses to trade goods and services which are concerned with the health of the people at large in India. Health trade licenses are provided by municipal corporations in different states. In the case of Delhi, MCD provides this license. If the license is not obtained by the required business, they will have to pay fines and penalties. In case of non-compliance with the terms and conditions of the health trade license, it can be canceled and in certain cases, businesses may even have to be shut down. This license works like an assurance that the business will comply with the hygiene and safety norms because they’d fear license cancellation. Obtaining this license can help the businesses seem trustworthy and genuine which can help to develop a feeling of trust in the consumers and investors of such businesses.

Frequently Asked Questions (FAQs)

Q1. Can the Health License given by MCD be revoked?

A. Yes, Health License is liable to be revoked in case Health License conditions are found to be violated.

Q2. Is MCD Health Trade License applicable in all the states?

A. No, MCD Health Trade License is only applicable for Delhi. Each state has its own municipal corporation for issuing this license.

Q3. How can applicants submit the license fees?

A. The license fees can be submitted through Demand Draft/Online Payment after getting a message on registered mobile number/email address.

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.