A trade license is a legal document that allows individuals or businesses to conduct specific types of trade or business activities. It ensures that the business complies with local laws and regulations, promoting safety and fair practices. Obtaining a trade license often involves submitting an application and paying a fee to the relevant government authority. Different types of trade licenses exist depending on the nature of the business, such as retail, food service, or construction. Local governments, such as city or county authorities, typically issue these licenses to ensure that businesses operate within the law and maintain community standards.