Trade License is a certificate which grants the permission to carry a business . It does not confer ownership of property or permission for any other activity other than for which it is issued.
The License Department is the authorized department by the municipal corporations which issues licenses in consultation with other specialized consultative departments like Engineering,  Health,  Estate and etc.

It provides permission letters or documents to carry on trade or business where it is located. The issuing of trade license vary depending on state/local government agencies (Municipals) rule and regulations.