A trade license is required to legally operate a business in India. It is issued by the local municipality and allows the holder to carry out an approved trade or business. To obtain a trade license, one must fill out Form 353 with personal and business details, submit documents like a property survey map and tax receipts, and pay any applicable fees. If approved, the license will be issued within 2-3 weeks and must be renewed annually by providing documents showing tax payments are up to date. Those under 18 years old or with a criminal record are ineligible to hold a trade license.