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MCD Health Trade License In Delhi Requirements, Documentation And Eligibility


MCD Health Trade License: Overview

For appropriate organization and functioning of the New Delhi Municipal Council, the Delhi Set-up suggested that Parliament approve a new statute controlling the NDMC. Several clauses in the Punjab Municipal Act, 1911 required to be amended in line with Part IXA of the Constitution before May 31, 1994, as a result of the Constitution (Seventy Fourth Amendment) Act's implementation. Furthermore, in comparison to the Delhi Municipal Corporation Act, 1957, there were some important discrepancies between various functional regimes provided under the former statute controlling NDMC. It was widely acknowledged that the Municipal Corporation of Delhi and the New Delhi Municipal Council's procedures in areas such as taxation, revenue, budgeting, contracts, accounts and audits, streets and sanitation, public health, public safety, and nuisance suppression needed to be more consistent.

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Objectives of Delhi Municipal Corporation

  • To pass a new law repealing the Punjab Municipal Act of 1911 in the New Delhi Municipal Council area.
  • It is vital to bring as much uniformity as feasible in the Municipal Corporation of Delhi and New Delhi Municipal area's building regulations, audit revenue, and budgetary provisions.
  • Wherever necessary, align the law with the Constitution (Seventy-fourth Amendment) Act, 1992, including relevant exclusions and adjustments under articles 243R, 243T, 243U, and 243V of the Constitution. The terms of the Constitution (Seventy-fourth Amendment) Act, 1992 went into effect on June 1, 1993, and by May 31, 1994, all municipal laws in the country were to be harmonized in accordance with the provisions of Part IXA of the Constitution. As a result, on May 25, 1994, an Ordinance was issued.

The MCD, NDMC, and Cantonment Board are the three municipal bodies that make up the National Capital Territory of Delhi (NCT). The Municipal Corporation of Delhi is responsible for almost 96% of the area and population of the Delhi Union Territory. The Delhi Municipal Corporation Act, 1957 was revised in August 1994 to bring it into compliance with Part IXA of the Constitution. In the case of the New Delhi Municipal Council, which accounts for only 3% of the area and 3% of the population of the National Capital Territory of Delhi, it was felt that a new legal system should be constructed to cater to the unique peculiarities of the area.

In India, having a Health License is required to do business that deals in goods and services that affect the health of the general public. There are primarily two types of licenses.

  • Health Care License
  • Health Trade License

Health Care Licenses are provided to entities that provide medical services in order to ensure their legitimacy.

Health Trade Licenses are issued by Municipal Corporation. This license functions as a license to operate a business that provides goods and services that have a direct impact on the public's health.

The entities must receive the licenses before they can start doing business. Ice factories, eating establishments such as restaurants and cafés, the selling of milk and milk products, medical shops, medicine manufacturing, and other enterprises require this license.

The purpose for obtaining Health Trade License

The fundamental reason for the license's issuance is to ensure that the health of those who use the various goods and services is protected. The license is required for all firms that deal with items or services that entail the consumption of food, medications, or other goods that are auxiliary to the food or medical business. Similarly, a license is required for services that affect the health of consumers. This license guarantees that all hygiene and safety regulations are followed.

Procedure For Licencing:

  • First, an expert will examine all of the documentation submitted by the applicant for a trade license. 
  • Second, if all of the documents make sense, the application will be completed, along with all of the attachments and other documents. 
  • Third, after completing the trade license application and all relevant attachments, the application will be submitted to the MCD authority, and the necessary fees will be paid at the end. Acknowledgment After paying for a trade license, a reference number will be generated, which should be saved for future tracking purposes.
  • Fourth, the applicant must physically provide a paper copy of all online documents, along with the acknowledgment reference number, to the MCD department in concern.
  • Fifth, after the application is submitted, the concerned official will review it and may approve, deny, or return the application to the applicant for resubmission.
  • Sixth, once the application has received a copy of the trade license, the applicant must frame and display the trade license in a prominent location.
  • It's worth noting that, according to Delhi Municipal Corporation laws and regulations, a first-time applicant can only apply for a one-year MCD trade license. After one year, the candidate can apply for a trade license renewal for up to five years.

Companies Must Have an MCD license or an MCD Trade License:

The businesses listed below are required to have an MCD Trade License and an MCD Health Trade Licence in order to avoid penalties under the Delhi Municipal Corporation Act, 1957.

  • Restaurants 
  • Food vending machines
  • Guesthouse and Hotels
  • Milk dairy, milk products manufacturer
  • Gym and Spa club
  • Salon
  • Beauty parlor
  • Confectionary Shops
  • Ice cream vendors
  • Coffee café
  • Catering shops
  • Mobile and Electronic Equipments shops
  • Furniture Shops
  • Fruit juice corners
  • Clothing shop
  • Shoe store
  • Furniture shops

Required Documents:

  • Proof of place of Business Premises like Sale Deed/Rent Agreement/Lease deed/Electricity Bill/Landline Bill/Telephone Bill/Water Bill.
  • Photograph of a business location with a front-facia and a display of things for sale in the business location.
  • Email Address and Mobile number of an Authorized Person.
  • Photographs of Partners or proprietors and directors.
  • Self-attested copy of PAN Card, GST of the Company or establishment.
  • Self-attested copy of Identity proof and Address proof of all the directors, Partners and proprietorship.
  • Electricity Connection Number of the location of Business premises.
  • The business's product description.
  • Canceled cheque and the bank statement of the establishment.

Municipal Corporation Delhi Health Trade Fees:-

The Municipal Corporation of Delhi (MCD) is organized into three divisions, each of which controls and issues trade licenses to all Delhi religions. The following are the three divisions:

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

Fees of NDMC Authority Are:

They are annual license fees:

  • Small Industries- Rs. 160
  • Medium Industries- Rs. 180
  • Large Industries-

If the area of shop <= 10sq. m., then fess = Rs.500
If the area of shop >10 and <=20, then fee= Rs.500 
If area >20, then fee = area*502 Black smith 
If the area of shop <=10, then fees of license = Rs.500

Fees of EDMC or SDMC Authority Are:

Fee for Processing are:

EDMC's Simplification Policy applies to License Fees (In Rs.)

Fees for General Process- Rs. 550

  • EDMC’s Simplification Policy applies to License Fees-
  • Rs.200/- PA 0-10sqm
  • Rs.500/- PA 10-20sqm
  • Rs.55/- per sqm PA after 20sqm

Commission Agents

  • Fees for Processing- Rs.550
  • EDMC's Simplification policy governs the licensing fee- Rs.1000

Coaching Class –personal teacher at home (Non-Commercial)

  • Processing fees- Rs.550
  • EDMC’s Simplification policy governs the licensing fee- Rs.1000


  • Processing fees- Rs. 550
  • The licensing cost is governed by the EDMC's Simplification policy- Rs.1000

Bamboo for Construction used and wood for shuttering

  • Fess for process- Rs.550
  • EDMC’s Simplification Policy governs the licensing fee- Rs.2000


  • Process fee-Rs.550
  • The licensing cost is governed by the EDMC’s Simplification policy- Rs.3000

Go down (rather than showroom)

  • Fees for processing- Rs.550
  • EDMC’s Simplification Policy applies to License Fees- Rs.3000

Please note that the above charges are simply for government fees, and our professional fees for MCD trade license/health trade license are separate.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.


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