Trading License (Assessment, Payment & Issuance)

What is a trading License?

This is a permission granted to someone upon application to a controlling authority (the MC in this case) to do something in prescribed manner, usually after fulfillment of certain conditions and/or payment of a fee.

“Trade” or “Trading’’ means the selling of goods and services for which a license is required under this Act, in any trading premises.

“A trading premise” includes any structure attached to the land, whether of a permanent or temporary nature.

Who is eligible to pay?

Any person carrying out business in the Municipal Council’s jurisdiction except those who are exempted under section 8(2) of the Trading License Act

The exempted businesses include among others the following:

  • Any trading carried on in a market
  • The trade of a planter, farmer, gardener, daily person or agriculturist in respect of sale of his or her own dairy or agriculture produce
  • The trade of a person in respect of goods bonafide made by him or her by he or her handicraft in or any premises where he or she normally resides, or by the handicraft of persons normal: residing with him or her or who are his or employees or members of his or the family.

Why pay trade license fees?

It is a legal requirement for any person selling goods and services as provided for by the licensing Act CAP 101 to enable the Municipal Council regulate trade and order.

Besides the said above regulatory role, payment of trade license fees contribute towards the financing of the MC Service delivery to its community.

How is a trading license acquired?

This is through a formal application to the MC for a trading license to do business, conditions to satisfy before acquiring a trading license include;

  • Appropriately located premises.
  • Appropriate hygiene and health standards of the premises
  • Appropriate building standards of the premises
  • A required personal specification e.g. medical fitness.
  • Payment of appropriate license fees.

What is the requirement for application of a license?

National

  • National ID Number/Registration number in case of a company
  • Original trading license for the Previous Year for already existing business.
  • Original Municipal Council receipt for the previous year for already existing business
  • Original certificate of incorporation of the company for the new business.
  • The client must be of at least 18 years of age and if a minor, should be in partnership with a person above 18 years of age.
  • TIN
  • Contact number
  • Email address
  • Name of the business and owner

Non Nationals

  • Clearance from the ministry of trade, industry and Cooperatives

How is assessment and payment of Trading License fees done?

Assessment is done based on the fees schedules issued by the minister of trade, industry and Cooperatives under statutory instrument No. 540f 2011 and The Trade (Licensing) (Grade of Business Areas) order, 2011 (Under section 30(2) 0f the Trade (Licensing) Act, Cap. 101).

Based on this MC Revenue Officer (Town Agent) issues a tax payer a Nansana Municipal Bank Payment Advise Form generated on IRAS to make payment at any designated Bank notification on email and phone number is received by the taxpayer and acertificate is generated on IRAS immediately payment is done

When is the effective date for payment of a Trading License?

 The trading licensing Act Amendments (2015) indicate the period as 365 days from the date of issue and this is an annual based tax.

What if I do not pay?

Any person who fails or obstructs or hinders on officer on duty, or knowingly makes a false declaration or gives any false information commits an offence and is liable on conviction to a fine or to a term of imprisonment not exceeding six month or both.

What is the governing Law?

Trade Licensing Act 1969 Cap 10.

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