A trade license is a document or certificate that gives the permission to the applicant to commence a particular trade or business in a particular area/location. Trade License, one of the important documents to start a business or a trade in a particular municipal limit. The Trade license issued by the municipal authority is exclusively for the Trade or business. Rules and regulations in relation to the issuance of a trade license varies from state to state. A business granted with this license will enjoy a greater goodwill than an unregistered entity and subsequently attracts more customers and investors.