Trade License in Hyderabad – FAQs, GST, Trading & Business Guide

If you’re planning to start a business or engage in trading in Telangana, understanding the process of getting a trade license in Hyderabad is essential. A trade license is mandatory for most commercial activities, especially in urban areas governed by GHMC. In this guide, we’ll answer the most frequently searched questions about trade license requirements, GST implications, trading eligibility, and step-by-step application details for 2025.

📌 Section 1: How to Apply for a Trade License in Hyderabad?

FAQs:

1. How to apply for a trade license in Hyderabad?
   You can apply online via the GHMC (Greater Hyderabad Municipal Corporation) portal by submitting the business address proof, identity proof, and business activity details.

2. Is trade license and shop license the same?
   They are similar but not always the same. A shop license is for establishing a physical shop under the Shops & Establishments Act, while a trade license is issued for any commercial activity.

3. Is a trade license mandatory for e-commerce?
   Yes, if you’re operating from a physical location or warehouse, a trade license may be required based on local municipal norms.

📌 Section 2: Is a Trade License Mandatory in Telangana?

FAQs:

1. Is a trade license mandatory in Telangana?
   Yes, especially in municipalities like GHMC, a trade license is mandatory for most businesses to ensure health, safety, and legal compliance.

2. What is the license to trade?
   A trade license is an official permit issued by municipal authorities to conduct specific business activities within a designated area.

📌 Section 3: Can I Apply for GST Without a Trade License?

FAQs:

1. Can I do small business without GST?
   Yes, if your turnover is below ₹20 lakhs (₹10 lakhs in special category states), you are not required to register for GST.

2. What is the difference between GST and trade license?
   GST is a tax registration under the central government, whereas a trade license is a local permit issued by municipal bodies.

3. Do traders pay GST?
   Yes, if their turnover crosses the threshold limit or if they are engaged in inter-state trade or e-commerce.

4. Can I sell on Meesho without GST?
   No, e-commerce platforms usually require sellers to have GST registration.

5. How much income is GST free?
   Income up to ₹20 lakhs annually is exempt from GST (₹40 lakhs for goods in some cases).

6. Do I need GST if my turnover is below 20 lakhs?
   No, it’s optional unless you’re engaged in inter-state supply or online sales.

7. Who is eligible for GST license?
   Any individual or entity exceeding the prescribed turnover or doing inter-state trade is eligible.

8. Can I have 2 trade names in GST?
   No, one GSTIN is issued per PAN per state. Multiple trade names require separate registrations or branch declarations.

9. Why is a trade license important?
   It legalizes your business, helps with inspections, and is often required for applying for GST and bank loans.

10. What is the turnover limit for GST?
    ₹20 lakhs (services), ₹40 lakhs (goods), ₹10 lakhs for NE/hilly states.

11. Can a trader claim GST refund?
    Yes, if you export goods/services or deal in zero-rated supplies.

12. Can I charge GST if not registered?
    No, it is illegal to collect GST without a valid GSTIN.

13. Who is not eligible for GST registration?
    Individuals below the threshold who do not engage in inter-state or taxable services.

14. Is trade name compulsory in GST registration?
    Yes, business/trade name must be mentioned in the application for branding and compliance.

15. Can I get GST number without business registration?
    No, you need to submit proof of business existence like trade license, rent agreement, etc.

📌 Section 4: Does Trading Require a License?

FAQs:

1. Who is eligible for trading?
   Any Indian citizen above 18 years with a valid PAN and business structure can trade.

2. Can I start my own trading business?
   Yes, you can start as a sole proprietor, partnership, or Pvt Ltd firm by registering your business.

3. How do I start trading?
   Open a trading account with a registered broker, register a business, and comply with GST/trade license norms.

4. What is the minimum to start trading?
   You can start with as low as ₹500–₹1,000 using online platforms.

5. Who is a qualified trader?
   A qualified trader usually refers to one who understands risk, compliance, and market strategies — though no formal certification is required.

6. Can a bank employee do trading?
   Yes, unless restricted by employment contract. Insider trading or misuse of information is prohibited.

7. What is the minimum income of a trader?
   It varies; many small traders earn ₹15,000 to ₹50,000 per month. Full-time professional traders can earn much more.

8. How to avoid day trading taxes?
   Maintain records, classify trading activity properly (speculative/non-speculative), and claim expenses legally.

9. Can I become a trader with no money?
   You can start with virtual trading or small capital through mobile apps.

10. Why do 90% of traders lose?
    Poor risk management, lack of strategy, and emotional decisions are common reasons.

11. What is the 3-5-7 rule in trading?
    It’s a general approach — 3 strategies, 5 rules, and 7 indicators to manage risk and reward.

12. Which trading is most profitable?
    Depends on your skills — swing trading and long-term investing tend to be less risky than day trading.