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Trade Licence in Chennai: Who Needs It, Apply and Renew Online

Every business inside Greater Chennai Corporation limits needs a trade licence. Fees depend on the trade and floor area, and renewal can be done online.

Running a shop in Chennai? Get the trade licence

Any business operating within Greater Chennai Corporation limits must hold a licence from the Commissioner. GCC reminded traders in March 2025 that this is required under Rule 289(1) of the Tamil Nadu Urban Local Bodies Rules, 2023, News Today reported, and asked them to renew before 31 March. The fee depends on what you do and how much floor space you use.

Both new applications and renewals are handled through the Corporation’s trade licence page, which links to its ERP portal. Here is who needs the licence, what it costs and how to get it done.

Who needs a trade licence

GCC’s Revenue Department says licences are issued for the trades listed under the Tamil Nadu Urban Local Bodies Act, 1998, as amended. In practice that covers most shops, eating places, workshops, small manufacturing units, lodges, hostels and marriage halls. Examples from the Corporation’s fee schedule include bakeries, medical shops, jewellery and textile stores, two-wheeler showrooms, departmental stores, restaurants and kalyana mandapams.

The fee resolution excludes some businesses from the shops schedule, such as companies registered under the Companies Act, banks and financial institutions, and trades already licensed under other laws like the Explosives, Petroleum and Cinematograph Acts or the Clinical Establishments Act. If you are unsure, ask the licence inspector at your zonal office.

A trade licence is separate from other permissions. Restaurants also need food safety registration and, depending on size, a fire safety NOC. Units that handle hazardous or plastic waste may need clearance from the pollution control board. Profession tax is a different levy, paid half-yearly. Companies also pay a separate half-yearly company tax to GCC, based on paid-up capital, which the Revenue Department lists from Rs 300 to Rs 3,000.

What it costs

GCC revised fees through a council resolution dated 18 July 2024. The fee structure links fees to the trade and the floor area. A few examples:

Trade Up to 1,000 sq ft 1,001 to 5,000 sq ft Above 5,000 sq ft
Medical shop Rs 1,500 Rs 6,000 Rs 10,000
Textile shop Rs 1,500 Rs 6,000 Rs 15,000
Bakery Rs 2,000 Rs 5,000 Rs 10,000
Departmental store Rs 5,000 Rs 10,000 Rs 20,000
Restaurant Rs 5,000 Rs 15,000 Rs 20,000
Kalyana mandapam Rs 10,000 Rs 20,000 Rs 30,000

Manufacturing units are banded as micro, small, medium and large. Overall, the schedule puts shops and commercial establishments between Rs 1,000 and Rs 20,000, eating houses between Rs 2,000 and Rs 25,000, and lodging houses between Rs 5,000 and Rs 50,000. The scanned resolution is hard to read in places, so check the figure for your exact trade with the zonal licence inspector before paying.

Applying for a new licence

New applications start on the GCC citizen portal. Create an account, choose the new trade licence option and fill in the business name, owner details, trade category, floor area and premises address. Have scanned copies ready of:

  • Identity proof and photo of the applicant
  • Latest property tax receipt for the premises
  • A rental agreement or a no-objection letter from the owner if you are a tenant
  • Any other NOC your trade needs, such as fire or pollution control

After you submit, an officer inspects the site and the application goes for approval. A Citizen Matters guide notes that small traders in listed categories have often received the licence within a day, while larger trades take longer. If the application is rejected, the reason is recorded, and you can reapply after fixing it.

Renewing your licence

Use the trade licence status and renewal page. Enter your licence number, check the details and pay. The Revenue Department says online renewal by debit or credit card carries no transaction charge and is instant. You can also renew at e-Seva counters in zonal and division offices, or pay a licence inspector using a handheld card machine.

Timing matters. News Today reported that renewed licences can be valid for one to three years under the rules. Renewals have traditionally been due by 31 March, at the end of the financial year. If yours lapses, renew it as soon as possible. Trading without a valid licence can draw notices and fines during inspections.

The Corporation publishes a trade licence dashboard with application counts, which shows how quickly applications are moving.

Quick answers

Does every shop in Chennai need a trade licence?

Businesses within GCC limits must obtain one, with some exceptions such as banks and companies registered under the Companies Act.

Can I renew online?

Yes, on the GCC trade licence renewal page, by card, with no transaction charge.

How is the fee worked out?

By trade category and floor area, under the 2024 fee resolution.

Where do I go for help?

The licence inspector at your zonal office, or GCC’s 1913 helpline.

This guide gives general information. For a complex or high-risk business, consult a professional adviser.

Information checked against official sources on 18 October 2026. Fees, dates and rules can change; confirm on the linked official pages before acting.

Sources

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