Back to: Store Management SS 3
Welcome to today’s class!!
We are thrilled to have you in our class!!
In today’s Store Management’s class, we will be learning about Licenses And Uses
Licenses And Uses
When we talk about licenses in the business world, we are simply referring to the right given to a company to trade.
A company trade license is required when a company creates its business checking account or hires employees. Furthermore, this document is necessary when a company applies for credit or capital for its business. Therefore, a company should acquire its trade license at least a few months before starting its business activities.
- Before commencing business activities, this document helps a business get investors, creditors, and customers as it validates the company’s credibility.
- If a business operates without a trade license, it is considered unlawful and heavy fines may be levied on the company.
In defining a trade license according to the law, a trade license is a legal document a company must acquire before starting business activities. This document provides legitimacy to a company and grants it to perform various activities for which the license has been issued. It is proof that the company’s business activities will not be a hazard to anyone. It also shows that the company will not act in any way that would inconvenience anyone.
The business must acquire the company trade license before it commences its operational activities. Ideally, it should be obtained three months before starting a business. The license department issues this document, which is an authorized establishment that permits a company to carry out several activities. The company must pay a specific fee for acquiring this document. The amount varies in different countries. In addition, some city authorities may require the business to pay its fees. The fee amount is predetermined, or it can be a percentage of the company’s annual sales.
This license requires a business to operate during business-like work hours and provide certain perks to its employees.
In summary, a trade license allows an individual not to be personally liable for their business debts. The license separates an individual’s taxes from their business taxes, and they must submit a separate file for the two. It allows the company several tax
Evaluation
What is a Trade License?
Reading Assignment
What is the role of Trade License to a Business?
Weekend Assignment
Give five uses of Trade License
We hope you enjoyed today’s class. In our next class, we will be talking about Basic Computer Literacy.
Let us know your thoughts and questions in the comment section, and we will attend to them as fast as we can.
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