Quick answer
Which trade license does a Delhi business need from MCD in 2026?
The trade license Delhi businesses need depends on the trade. As of November 2026, food businesses with FSSAI registration hold a deemed MCD health trade licence; gyms, salons, spas, cinemas and guest houses still apply for a health trade licence; chemists, laundries, tobacco sellers and large tailoring units fall under MCD's General Trade Licence.
- Food businesses: FSSAI counts as deemed health licence
- Gyms, salons, spas, lodging: health licence from MCD
- Chemists, laundries, tailoring: General Trade Licence
- Validity can run up to six financial years
What is a trade license in Delhi and who needs one?
A trade licence in Delhi is issued by MCD under the Delhi Municipal Corporation Act, 1957. Section 417 of that Act says anyone who wants to carry on a trade covered by MCD's public health policy must hold a health trade licence. Other listed trades need a General Trade Licence from MCD's licensing branch, and industrial units need a factory licence.
It is a municipal permission tied to the premises. It does not replace tax or labour registrations: you will usually also need GST registration, a shops and establishment registration and, for food, an FSSAI registration or licence.
| Type of business | Licence route (November 2026) |
|---|---|
| Restaurants, eating houses, dhabas, cafes, caterers, banquet halls, food courts, juice shops, takeaways | FSSAI registration or licence treated as deemed MCD health trade licence; MCD fee collected |
| Storage and sale of food items (atta, dal, spices, bakery goods, cold storage) | Listed with food businesses under the FSSAI deemed route |
| Gyms, health clubs, swimming pools, spas and wellness centres | Health trade licence from MCD Public Health Department |
| Barber shops and beauty parlours | Health trade licence from MCD |
| Guest houses, lodging and boarding houses, cinemas, auditoriums, amusement parks | Health trade licence from MCD |
| Chemist shops, tobacco sellers, laundry and dry cleaning, ironing, lens grinding, tailoring or embroidery with more than 5 machines | Moved to MCD General Trade Licence (GTL) |
| Factories and manufacturing units | Factory licence through the MCD portal |
Sources: MCD orders on mcdonline.nic.in: FSSAI deemed licence order (uploaded 6 October 2026), orders PS/MHO-II/2026/D-20 and D-21 dated 15 June 2026, checked 10 November 2026.
Health trade license Delhi: what changed in 2026?
The health trade license Delhi regime was cut back in 2026. Following MCD's deregulation order of 29 May 2026, an FSSAI registration or licence is treated as a deemed health trade licence for food businesses, and MCD collects its licence fee at existing rates, yearly or for the FSSAI term. Two orders of 15 June 2026 then split the remaining trades.
- Food businesses: no separate MCD application; the FSSAI registration or licence does the job. Where piped natural gas is available, food businesses must operate on PNG. Fire, pollution and other clearances remain your responsibility.
- Moved to General Trade Licence: chemist shops, storage and sale of tobacco, laundry and dry cleaning, ironing, lens grinding, washermen and tailoring or embroidery units with more than five machines. Existing health licences for these stay valid until expiry.
- Still with Public Health: gyms, health clubs, pools, spas, salons, cinemas, auditoriums, amusement parks, circuses, guest houses and lodging houses.
For a food business, the practical step is now FSSAI registration in Delhi done correctly for the premises.
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Documents for an MCD health trade licence
MCD's circular of 21 September 2026 sets the documents for a fresh health trade licence. The premises must be in a conforming area for that trade (commercial, industrial, a notified commercial road, or as the Master Plan allows), and you need to prove legal occupation.
| Document | What MCD accepts or expects |
|---|---|
| Identity of the applicant | Aadhaar, voter ID, driving licence or passport |
| Legal occupancy of the premises | Registry, sale deed, rent or lease agreement, gift deed, government allotment letter or rent receipt |
| Site plan | Layout of the premises |
| Structural safety certificate | For the building used for the trade |
| Fire safety certificate | Where the premises is taller than 12 metres |
| Staff list and medical certificates | Signed staff list; typhoid vaccination certificates from an allopathic doctor where a kitchen runs |
| Pest control certificate | In MCD's prescribed format, renewed on expiry |
Source: MCD document circular, 21 September 2026, checked 10 November 2026. The list varies by trade; read your trade's row.
How to apply for a trade license in Delhi: step by step
Applications are online on the MCD portal. For designated trades MCD offers an instant health trade licence that you generate yourself after uploading documents and paying fees.
- 1
Confirm the right licence
Check whether your trade is under FSSAI deemed licensing, the health trade licence or the General Trade Licence.
- 2
Check the premises
Make sure the location is a conforming area for the trade and your occupancy papers are in order.
- 3
Register on mcdonline.nic.in
Create a citizen login and open the health trade licence or general trade licence service.
- 4
Fill the form and upload
Enter trade, area and owner details, and upload the documents MCD lists for that trade.
- 5
Pay fees online
Pay the processing, registration and licence fees through the payment gateway and note the registration number.
- 6
Download and track
Download the licence or instant licence, then check your login for any deficiency MCD raises later.
Trade license Delhi fees and validity
MCD fees depend on the trade and its size, and the health trade licence page states the fee schedule applies for FY 2025-28 from 1 April 2025. For eating establishments, the annexure to MCD's 2026 FSSAI deemed licence order lists annual licence fees such as the ones below, with a separate registration charge.
| Trade | Annual licence fee |
|---|---|
| Eating house up to 20 seats | ₹11,500 |
| Eating house 21 to 50 seats | ₹23,000 |
| Food court up to 100 seats | ₹46,000 |
| Food court above 100 seats | ₹92,000 |
| Validity option (health trades) | Up to six financial years |
Sources: MCD FSSAI deemed licence order, Annexure A; validity under MCD office order of 18 March 2025, checked 10 November 2026. Fees for other trades and General Trade Licence fees: check the portal.
Labour license Delhi: is it the same as a trade licence?
No. When people search for a labour license Delhi, they usually mean the shops and establishment registration with the Delhi government's labour authorities, which covers shops, offices and commercial establishments. That is a labour law registration, separate from MCD's trade licence, and many businesses need both. See our shop and establishment registration page for that process.
Two other permissions get mixed up with it. Industrial units apply to MCD for a factory licence through its portal, and MCD's instructions say a late renewal penalty applies after 30 April each year. Contractors who supply workers may need separate licensing under labour laws; check the Delhi labour department's portal for the current rule before you start.
Penalties and common reasons trade licences fail
MCD's own orders spell out the risks. Running a licensable trade without a valid licence, or generating one on wrong facts, can end in revocation, penalties and sealing.
- Non-conforming area. An instant licence generated for a trade in a non-conforming area is treated as void from the start.
- Misrepresentation. A licence based on concealed or wrong facts is revoked, the fee is forfeited, and MCD may impose penalties up to closure and sealing.
- Unfixed deficiencies. If MCD raises a deficiency and you do not fix it in time, closure notice and sealing can follow.
- FSSAI deemed licence violations. MCD gives up to three weeks to fix a violation by notice; after that the deemed status can be revoked.
- Late factory licence renewal after 30 April attracts a penalty.
Trade licences across Delhi's markets
MCD runs licensing zone by zone, but the portal and rules are common across the city. The mix of licences differs by area. Restaurant clusters around Netaji Subhash Place, Rajouri Garden and Connaught Place mostly need the FSSAI route now. Salons, gyms and spas in residential colonies must still clear the health licence, where the conforming-area test is often the sticking point. Chemists across the city move to the General Trade Licence at their next renewal. Businesses in and around our office area can read the CA in Netaji Subhash Place page.
How CA in Delhi helps with your trade licence
Send us your trade type, premises address, ownership or rent papers and any existing MCD or FSSAI licence. We tell you which of the 2026 routes applies, list the documents for your trade, prepare the application and keep the renewal date on record. Our fee for the licence work is quoted and fixed before anything is filed.
Khubchandani & Co. publishes FSSAI licence work, which now covers most food businesses' MCD requirement; see Khubchandani & Co.. For MCD health or general trade licences, CA in Delhi passes the enquiry to the listed firm or partner professional that handles municipal licensing and confirms scope and a fixed quote first. Want someone close by? See CA near me. For MCD licence help, call or WhatsApp +91 99114 92897 any day from Monday to Saturday, 10 am to 7 pm.
Frequently asked questions
Is a trade licence mandatory in Delhi?
It is mandatory for trades that MCD licenses under the Delhi Municipal Corporation Act, such as eateries, gyms, salons, guest houses, chemists and laundries. An ordinary office or a shop selling non-listed goods may not need one, but will still need other registrations such as shops and establishment and GST.
Do restaurants in Delhi still need an MCD health trade licence?
Not as a separate application. Under MCD's 2026 deregulation order, an FSSAI registration or licence is treated as the deemed health trade licence for food businesses. MCD still collects its licence fee, and you remain responsible for fire, pollution and other clearances.
What is the validity of a health trade licence in Delhi?
MCD's office order of 18 March 2025 lets licensees choose validity of up to six financial years for health trades, after paying the licence fee for that period. Instant health trade licences can also be taken for up to six financial years.
What is the instant health trade licence?
It is a licence you generate yourself on the MCD web portal for designated trades, by uploading mandatory documents and paying fees online. MCD can still inspect later. If it was generated for a non-conforming area or on wrong facts, it is void or revoked and the fee is forfeited.
Does a chemist shop need a health trade licence now?
No longer a fresh one. MCD's order of 15 June 2026 moved chemist shops to the General Trade Licence handled by MCD's General Branch. An existing health licence stays valid until it expires, after which it is dealt with under the General Trade Licence.
Is a labour licence the same as shops and establishment registration?
In everyday use, yes: most people asking for a labour licence in Delhi need the shops and establishment registration from the Delhi labour authorities. It is different from the MCD trade licence. Contractors supplying workers and factories have their own separate permissions.
Can I get a trade licence for a shop in a residential area?
Only if the trade is allowed there under the Master Plan, for example on a notified commercial or mixed-use road, or as the trade's rules permit. MCD's document circular lists the conforming areas for each trade, and an instant licence in a non-conforming area is treated as void.
How much is the trade licence fee for a small restaurant in Delhi?
MCD's 2026 annexure lists an annual licence fee of ₹11,500 for an eating house up to 20 seats and ₹23,000 for 21 to 50 seats, plus a separate registration charge. Check the amount shown on the portal at payment, as fees vary by trade.